In electrolysers, water is broken down into its components, oxygen and hydrogen.
(Photo: dpa)
The government of Namibia has commissioned Hyphen Hydrogen Energy to develop, build and operate a multi-billion dollar hydrogen project. Hyphen Hydrogen Energy is owned by infrastructure developer Nicholas, active in Europe and Africa, and German energy company Enertrag.
According to a joint statement by the government of Namibia and Hyphen, which is available to the Handelsblatt, the project involves a total investment of ten billion US dollars.
The amount roughly corresponds to Namibia’s annual GDP. Experts estimate that the project will create up to 15,000 jobs during construction and 3,000 jobs during operation.
The plan is to set up wind farms and photovoltaic systems with an installed capacity of seven gigawatts (GW) in Namibia. To put this into perspective: the value of seven GW exceeds the highest annual wind power expansion that has ever existed in Germany by around 1.5 GW.
Electrolysers with a capacity of three GW are to be operated with the electricity. This would make the project one of the largest of its kind in the world. In the electrolysers, water is broken down into its components, oxygen and hydrogen. The hydrogen obtained in this way is referred to as “green hydrogen” because it is climate-neutral.
Full operation is planned for the end of the decade
The green hydrogen is to be converted into green ammonia because it is easier to transport than hydrogen. Ammonia is a hydrogen derivative, i.e. a derivative of the starting product hydrogen. At the destination, ammonia can be converted back into hydrogen or used directly, for example in the chemical industry.
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When fully operational, which is expected before the end of the decade, the project will produce two million tons of green ammonia annually “for regional and global markets,” according to the joint statement.
Green hydrogen and its derivatives are considered indispensable for the transformation of industry to climate neutrality and for the climate-neutral operation of ships and aircraft as well as in road-bound heavy goods traffic. German industrial companies are very interested in supply relationships with producers of green hydrogen.
The first tranche of EUR 540 million is ready
Enertrag has been one of the leading developers and operators of wind farms in Germany for years. The company from the Brandenburg town of Dauerthal also got into hydrogen electrolysis at an early stage.
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Namibian President Hage Geingob said his country is “seriously embarking on a process that has the potential to transform the lives of many in our country, in the region and even in the world.” change”.
The feasibility and implementation agreement with Hyphen Hydrogen Energy, which the Namibian government has now approved, is expected to be signed by both parties on Friday.
According to the agreement, the Namibian government has the opportunity to participate as a co-investor with up to 24 percent. According to Hyphen, funds totaling 540 million euros have already been mobilized by the Dutch development bank Invest International and the European Investment Bank (EIB).
Enertrag boss Gunar Hering told Handelsblatt that the aim is to develop Hyphen into a “Namibian world-class green hydrogen company”.
An energy and climate cooperation exists between Germany and Namibia. During his visit to Namibia in December last year, Federal Minister of Economics Robert Habeck (Greens) emphasized the importance of close cooperation with the African country in hydrogen production. As part of a cooperation agreement in the field of hydrogen economy concluded in March 2022, the former State Secretary for Economic Affairs Rainer Baake was appointed special representative for German-Namibian climate and energy cooperation.
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