Hyphen Hydrogen Energy, the green hydrogen development company has been awarded the rights from the government following a competitive tender process, to develop Namibia’s first gigawatt scale green hydrogen project. Hyphen is a joint venture between controlling shareholder ENERTRAG SE and Nicholas Holdings Limited.
This week, Hyphen Hydrogen Energy informed Windhoek Money that the Hyphen’s project is being developed as the first step in the implementation of the government’s strategy for the development of a large-scale green hydrogen industry in various regions in Namibia to support both economic growth in Namibia and assist the world in achieving its decarbonisation goals.
At full scale development, the project will produce two million tonnes of green ammonia annually before the end of the decade for regional and global markets, from 7GW of renewable generation capacity and 3GW of electrolyser capacity, cutting 5-6 million tonnes (annually) of CO2 emissions, with Namibia’s annual 2021 emissions totalling 4.01 million tonnes.
Observer Money (OM): At what stage has the Hyphen project reached so far?
Hyhen Hydrogen Energy (HHE): The Hyphen project is constantly moving forward and there are many moving parts. One major milestone is the deployment of a total of 10 new MetMasts, packed with` sensor and data collection equipment, in addition to the refitting with new measuring equipment of an existing MetMast acquired by Hyphen from NamPower. These 11 masts, established at a cost of EUR2 million, which are 120 meters tall, collect data, enabling Hyphen to precisely model the energy yield of the wind and solar resources to enable the optimised design of the overall project. At the same time, more and more people are joining the Hyphen project as it continues to develop.
OM: Has Hyphen finalised the pre-feasibility assessments and the formal feasibility study phase?
(HHE): The environmental process for the whole project will be broken into a number of phases and into various sections of the project to be constructed to cater for the complexity of the process and the scale of the development. The first phases of the environmental process have commenced and SLR Consulting, together with Hyphen, will be conducting a series of public participation workshops from now until around mid-2025.
Extensive public consultation efforts are planned as part of the forthcoming ESIA process. These efforts include for example legally mandated newspaper notices, notices broadcast over the radio and public but also focus group meetings at a local community level, all during the first round of consultations early during the scoping phase of the ESIA. Subsequent rounds of consultation will also have planned to take place at the end of the scoping and assessment phases of the forthcoming Environmental and Social Impact Assessment (ESIA). Interested and affected parties (I&APs) will have ample opportunity to not only receive information on the project but also submit their comments for consideration.
OM: Hyphen Hydrogen Energy has promised to invest billions into the project, how much has been invested in the project so far?
HHE: This project will have a transformative impact for Namibia and its economy. The total project capital investment of over EUR14 billion is roughly equivalent to the country’s annual GDP. This project alone will cut 5 to 6 million tonnes (annually) of global CO2 emissions. Namibia’s total emissions in 2021 totaled 4.01 million tonnes.
OM: When will the project be finalised and when will production start?
HHE: Hyphen is targeting annual production of one metric tonnes per annum by end of 2028, expanding to two metric tonnes per annum by the end of 2030. Hyphen is targeting the export of green hydrogen in the form of green ammonia to the demand centres of Europe, South Korea and Japan to help decarbonise those economies. Some modest supply of green hydrogen for limited use cases in Namibia is possible from Hyphen’s project, with the majority of local supply coming either from subsequent expansion by Hyphen or subsequent projects.
Hyphen is targeting the supply of excess electricity to the Namibian grid, to assist Namibia in lowering the cost of electricity, reducing reliance on imported electricity and enhancing Namibia’s energy security.
Hyphen is also targeting the supply of water to the town of Lüderitz to support the growth in the town’s water demand linked to the establishment of the project without having to draw on existing water supply sources.
OM: Is there anything else that you may wish to add?
HHE: It is estimated that the project will create up to 15 000 new jobs during the construction phase, and 3,000 permanent jobs during its operation, with the target for 90% of these jobs to be filled by Namibians and 20% by youth. The project is targeting 30% local procurement of goods, services and/or materials during the construction and operational phases.
Hyphen’s project is designed to act as a catalyst to establish an entirely new industry in Namibia. The longer-term opportunities for green industrialisation linked to hydrogen development within Namibia are huge. Not only will building this industry have direct positive effects on fiscal revenues, economic growth, employment, national skills and supply chain value, it will also create significant indirect economic benefits –the multiplier effects of large infrastructure projects can lead to the establishment of entirely new industries in the energy sector and beyond.
Namibia is seeking to capitalise on the country’s development by leveraging its natural energy with their oil and gas reserves that has generated a growing and vibrant economy, Namibia can do the same with its solar and wind resource which it is looking to leverage in a broad green industrialisation strategy, targeting investment across a range of sectors in the green energy value chain.
