Namibia has inked a historic $10 billion deal with Germany’s Hyphen Energy to produce “green hydrogen,” a renewable energy source that experts believe holds immense potential.
The agreement was recently signed by Namibia’s president, paving the way for the construction of the project in Tsau Khaeb National Park. If a feasibility study yields positive results, Hyphen Energy will proceed with the construction of factories, pipelines, and ports, with a goal of producing 2 million tons of ammonia by 2030.
The production of ammonia will utilize renewable energy sources like solar and wind power, aligning with global efforts to reduce carbon emissions and combat climate change. In addition to fuel, the project will also generate oxygen and electricity for local consumption, contributing to Namibia’s energy independence and sustainability.
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Namibia’s green hydrogen commissioner and economic adviser to the president, James Mnyupe, emphasized the project’s comprehensive approach.
Unlike similar endeavors worldwide that involve multiple entities handling different aspects, the Namibian project aims for vertical integration, encompassing the development of ports, pipelines, and renewable energy sources under one umbrella.
Hyphen Energy’s CEO, Marco Raffinetti, acknowledged the significant funding required for green hydrogen initiatives but stressed their importance in curbing carbon emissions.
He drew parallels with the decreasing costs of solar energy over the past two decades, suggesting that green hydrogen may follow a similar trajectory, ultimately becoming more affordable and accessible.
However, some political commentators in Namibia have expressed concerns about the project’s expedited implementation and lack of national consensus. Political analyst Pendapala Hangala raised questions about the project’s due process and the availability of critical raw materials.
Despite reservations, the Namibian government remains committed to harnessing the potential of green hydrogen and its long-term benefits for the country’s energy landscape.
