Name of the Project
Hyphen green hydrogen project.

Location
Tsau//Khaeb National Park, near Luderitz, in Namibia.

Project Owner/s
Hyphen Hydrogen Energy is a joint venture between Nicholas Holdings Limited and ENERTRAG, but the Namibian government confirmed in June 2023 that it would take up a 24% equity stake in the project.

Project Description
The development of Namibia’s first large-scale, vertically integrated green hydrogen project will be completed in phases.

Phase 1 will create 3.75 GW of renewable electricity generation capacity to produce green hydrogen for conversion into green ammonia. This phase aims to produce 175 000 t/y of green hydrogen, to be further processed into one-million tonnes a year of green ammonia for export to Europe.

After Phase 2, the project will have solar and wind electricity generation capacity of 7 GW, and electrolysis of 3 GW, which will yield about 350 000 t/y of hydrogen, subsequently translating into two-million tons of green ammonia.

The project is expected to reduce CO₂ emissions by five- to six-million tonnes a year.

Potential Job Creation
About 15 000 construction jobs will be created during the four- to five-year construction period, with an estimated 3 000 permanent jobs being created once the project is fully developed. More than 90% of these jobs are expected to be filled by Namibians.

Capital Expenditure
$10-billion.

Planned Start/End Date
A final investment decision is expected in the first half of 2026. 

Phase 1 construction is expected to start at the end of 2026, with completion expected at the end of 2028. 

Phase 2 construction is expected to start at the end of 2028, with completion expected at the end of 2030.

Latest Developments
German power utility RWE has withdrawn from the project, which is a blow to Namibia’s ambitions to become a major hydrogen hub.

The pullback is the latest example of companies reconsidering investments in a nascent technology that is expensive to develop.

RWE had signed a preliminary nonbinding memorandum of understanding with Hyphen in 2022 to take about 300 000 t/y of ammonia from 2027.

Key Contracts, Suppliers and Consultants
ILF (services, technical expertise, as well as procurement, contract advice and socioeconomic development goals); Development Bank of Southern Africa (funding partner); Climate Fund Managers (equity partner).

Contact Details for Project Information
Hyphen Energy, email info@hyphenafrica.com.