The Namibian government and green energy supplier Hyphen Hydrogen Energy on July 24 launched the socioeconomic development (SED) framework for Namibia’s landmark $10-billion green hydrogen project.

The framework is an integral part of the feasibility and implementation agreement (FIA) which demonstrates the government’s commitment to incorporating SED targets for green hydrogen developers in the implementation of Namibia's green hydrogen strategy. 

The framework goes further than existing Namibian legal requirements and reflects Hyphen’s commitment to maximising local participation in the project.

The SED framework sets out the process to agree the project’s targets in respect of employment, local procurement, skills development and enterprise and supplier development – the combined breadth of which has not previously been part of infrastructure or natural resource agreements concluded by the government. 

“In partnership with central, regional and local government, we aim to co-create solutions with local communities as we develop a roadmap for the delivery of a comprehensive SED strategy,” states Hyphen head of environment, social and governance Toni Beukes.

“It’s our ambition that this project and manner of setting socioeconomic commitments for the project will set a new global benchmark for the sustainable and equitable development of large-scale green hydrogen projects that puts inclusive economics and robust environmental sustainability at its heart.

“We would like to extend our humble thanks and appreciation to the government as our partners in this project and look forward to getting to work.”   

The pioneering FIA governs the process for the development, implementation and operation of Namibia’s first green hydrogen project. When completed, it will be sub-Saharan Africa’s largest and only fully vertically integrated green hydrogen project. 

Hyphen estimates that the project will create up to 15 000 new jobs during the construction phase, and 3 000 permanent jobs during its operation on completion of both phases. There is a target for 90% of these jobs to be filled by Namibians, with 20% specifically targeted for youth.

The company further estimates 30% local procurement of goods, services and/or materials during the construction and operational phases. The SED framework includes a robust process by which Hyphen will validate these estimates through comprehensive baseline studies conducted during the feasibility phase, with the government undertaking its own baseline studies in parallel.

Hyphen will undertake various initiatives to drive effective stakeholder engagement throughout the development phase. Under a strict governance framework, the government will agree the final contractual delivery obligations of Hyphen in respect of its SED commitments in the delivery of the project, including appropriate sanctions in the event of nonperformance.

At the official launch ceremony held in the ǁKaras regional capital of Keetmanshoop in Namibia, the government and Hyphen commented that the SED framework serves to promote the socioeconomic wellbeing of Namibia, creating jobs, empowering local communities, fostering economic growth and nurturing a sustainable future for all. 

The government and Hyphen will be embarking on a three-month national community roadshow beginning in August this year. This will be aimed at actively engaging with local communities, businesses and individuals across the country, providing detailed insights into the SED framework and explaining how the project is intended to work and the potential benefits it offers to Namibians.  

“Our chief mission as the Namibian Green Hydrogen Council (GHC) is to ensure that Namibia’s world-class renewable resources are deployed in an equitable manner that leads to the uplift of the Namibian people.

“The framework announced today will ensure that government, Hyphen and the Namibian people all have a say in our shared future prosperity as we move forward to capture the benefits of the global decarbonisation effort,” enthuses Namibian GHC chairperson and National Planning Commission director-general Obeth Mbui Kandjoze.

“The socioeconomic growth and development that green hydrogen could bring to Namibia is monumental. The hydrogen projects will anchor the construction of thousands of houses, new roads, port facilities, electricity transmission lines, pipelines, desalination plants and hospitals, among many other necessary infrastructure, making use of existing Namibian skill sets and service providers,” says Namibia Presidential economic adviser James Mnyupe.

“In addition to this, local small-, medium-sized and microenterprises stand to benefit from multibillion-dollar contracts. These could provide opportunities to create generational wealth and sustainable businesses given that some of the green hydrogen projects being contemplated in Namibia are seeking to explore the unlimited renewable energy for multiple decades,” he adds.

“The message is clear this is a Namibian project that could bring many benefits to our people. As a community we now need to organise ourselves and ensure we are ready to take full advantage of this transformational project,” notes chief of the Blouwes Traditional Authority and chairperson of the Southern Traditional Community Foundation DC Gertze.

Hyphen is a Namibian-registered green hydrogen development company, specifically formed to develop green hydrogen projects in Namibia for domestic, regional and international markets. Hyphen is a joint venture between Nicholas Holdings and ENERTRAG.