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.

The first phase of the green ammonia project includes 3.75 GW of renewable-energy generation, battery storage, 1.5 GW of electrolyser capacity and supporting infrastructure such as desalination facilities, pipelines, transmission lines and enhanced port facilities.

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.

The desalination infrastructure will also deliver three-million litres a day of clean water to the water-scarce region of Lüderitz.

Potential Job Creation
The project is expected to create 15 000 construction jobs and 3 000 permanent positions, with 90% of those jobs reserved for Namibian nationals and 20% specifically targeting youth in a country where youth unemployment exceeds 38%.

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
The African Development Bank has approved a $10-million loan to support the development of the project.

The loan, sourced from the Sustainable Energy Fund for Africa, will support front-end engineering design studies for solar and wind generation, battery energy storage systems and electrolyser capacity and desalination infrastructure, thereby derisking the project and attracting the financing needed to implement the project

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.