The Daures Green Hydrogen Village (DGHV) project, in the Erongo region of Namibia, has the potential to produce 5.6 GW of renewable energy comprising 5.1 GW solar and 427 MW wind power.

Of this generated power, about 700 MW will be curtailed power, a further 70 MW of which will be fed into the national grid, says DGHV business development manager Dr Lutz-Heiner Otto.

The 100%-Namibian-owned project supports the country’s objectives of sustainable development and energy independence by increasing renewable-energy capacity, consequently reducing the carbon footprint of the agricultural and energy sectors, and fostering economic growth through job creation and increased GDP, says Otto.

Increased hydrogen production can contribute to Namibia’s GDP by positioning the country as a key player in the global green hydrogen export market.

Further, the DGHV project intends to connect to the grid during its industrial scale phase.

By integrating curtailed power into the national grid, the project can assist in stabilising energy supply and reduce the need for fossil fuel-based power generation, assisting in the country's efforts to be less dependent on electricity imports from the Southern African Power Pool, he elaborates.
 
The project aims to produce green hydrogen, green ammonia, green fertiliser and carbon-free agricultural produce for regional and export markets.

The DGHV has completed a prefeasibility study for a 5.5 GW facility capable of producing over one-million tonnes of ammonia a year, which Otto notes is a long-term aspiration.

In the short to medium term, the DGHV is focused on establishing demonstration-scale fertiliser production, producing ammonia sulphate fertiliser.

“In the medium term, we believe the site can house a 550 MW fertiliser production facility and [we] are . . . investigating [that] further.”
 
However, Otto acknowledges the possible challenges of scaling green hydrogen production sustainably.
 
Capital for projects in sub-Saharan Africa is typically five to six times times more expensive than projects deployed in the Global North.

Affordable financing is crucial for infrastructure development in sub-Saharan Africa, as it significantly reduces the cost of borrowing, making it feasible for private investors to undertake large-scale projects, Otto adds.

“Analysis on our project metrics indicates a direct correlation between the levelised cost of hydrogen and ammonia, and the weighted average cost of capital: a 30% reduction in the weighted average costs of capital equates to a 20% reduction in the levelised cost of hydrogen and ammonia.”
 
The project is expected to have broad socioeconomic benefits, with the DGHV project committed to delivering benefits by prioritising local community and industry engagement. Key initiatives include creating jobs and providing training programmes to build a skilled local workforce for the emerging green hydrogen sector.

At industrial scale, the project is expected to create numerous job opportunities in various sectors, including construction, and operation and maintenance of the hydrogen production facilities, he says.

Green Ammonia
The DGHV plans to pilot the production of ammonium sulphate, a nitrogen-based fertiliser, using green ammonia as the key feedstock. This approach creates Namibia's first end-to-end fertiliser production process, with sulfuric acid sourced from a local Namibian supplier to complement the green ammonia, Otto says.

This effort aims to reduce reliance on imports, which currently account for 100% of Namibia’s mineral fertiliser supply.

“Namibia’s fertiliser application rates are among the lowest in the world, significantly limiting agricultural productivity and contributing to the country’s high yield gaps,” Otto says.

He explains that locally produced fertilisers will improve accessibility and affordability for farmers, driving increased use and boosting crop yields.

This shift is also expected to stabilise supply chains, which are vulnerable to geopolitical disruptions and price fluctuations in international markets.

“Locally produced green ammonia also enables Namibian farmers to access fertilisers at lower costs,” says Otto.
 
Additionally, using green ammonia as input for sustainable nitrogen-based fertilisers will enable the project to promote carbon-free agriculture and promote environmental sustainability.

Traditional ammonia production through fossil fuel-powered Haber-Bosch processes accounts for 2% to 5% of global greenhouse-gas emissions. By leveraging renewable energy to produce green hydrogen, which is the precursor to green ammonia, DGHV significantly reduces the carbon footprint of fertiliser production, Otto explains.

This decarbonisation effort supports Namibia’s, and global, ambitions to achieve net-zero carbon emissions, he concludes.