The green hydrogen project carried out by Hyphen Hydrogen Energy will begin production in 2026. Mr. James Mnyupe, the presidential economic advisor and hydrogen commissioner of the Namibian government, explained that Lüderitz, a town in southern Namibia, was favored due to its resources in solar & wind and closeness to the ocean, both as a water source & port.
The projects will create renewable electricity and alternative to imported coal power from South Africa. The renewable energy provided by the sun and wind will be used to separate hydrogen molecules from desalinated water. In their pure form or derivative green ammonia, those hydrogen molecules can make different products like sustainable fuels. The project will fundamentally create nearly 300,000 tons of green hydrogen per year. The project aims to train & employ locals to reduce the town’s (Lüderitz) 55% unemployment rate.
Hyphen Hydrogen Energy stated that the four-year construction would create 15,000 direct jobs and 3,000 more during complete operations, where 90% of the employees will be locals. Mr. Balhoa, a town council member, expressed that the town’s residents are excited for this project, especially since they have been struggling economically for the past 10-15 years, maybe longer. There are signed agreements with Germany, Belgium, and the Netherlands with some funding agreements.
Namibia is searching for more options to fund the initial project, estimated to be nearly $9.4 billion. The government hopes to find additional funding to expand into agriculture, logistics, energy, and green hydrogen trains and pipelines to trade with neighboring countries.
