Money for hydrogen participation

Hyphen Hydrogen Energy, Enertrag and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on Monday signed a cooperation agreement worth €300 000 (about N$5.7 million) to build capacity, competitiveness and readiness for Namibian enterprise participation in the budding local green hydrogen value chain.

The initiative falls under the German Federal Ministry for Economic Affairs and Energy’s International Hydrogen Ramp-up Programme (H2Uppp), aimed at supporting companies in identifying, preparing and implementing projects for the production and use of green hydrogen, especially in countries in the Global South.

At the signing event in Windhoek, Hyphen chief executive Marco Raffinetti said the scale of development that the company and the Government of Namibia have embarked upon is daunting. “Sometimes you wake up in the morning or in the middle of the night and realise the amount of work that needs to be done and the scale of what we are trying to achieve. Projects of this nature cannot be achieved or delivered without partnerships. It is all about partnerships,” he emphasised.

The partnership between the Namibian and German governments is at the heart of Hyphen’s US$10 billion fully integrated green hydrogen-to-ammonia project in Tsau ||Khaeb National Park in the deep south. After operations start in 2030, Hyphen intends to ramp up production to 350 000 tonnes of green hydrogen annually for export to Europe.

“When countries look to energy security and look to partner with countries to place their energy security in their hands, that partnership is fundamental. As we can see with the challenges in the Middle East at the moment, fragile partnerships and fragile trade relationships can have very damaging impacts on global economies,” he said.

On behalf of GIZ, country manager Tobias Gerster said that in recent years the relationship between Germany and Namibia has been changing from a “development partnership into a partnership of mutual interests.” The most recent negotiations between the countries late last year saw over €40 million allocated to various initiatives in Namibia, he said.

“Namibia’s stable political and economic landscape, and its commitment to economic transformation through a climate-friendly economy, continues to provide a strong and resilient basis for long-term cooperation on the green transition,” he said.

Diversification

Gerster said the H2Uppp programme seeks to support export-oriented local enterprises “to diversify local economies, to bring in German technology and at the same time contribute to energy security in Germany.” Hyphen and Enertrag successfully applied to the H2Uppp public-private partnership programme to develop an enterprise and supplier development solution, he said.

Dr I-Ben Nashandi, executive director of the National Planning Commission, expanded on this, saying: “This partnership reflects the practical implementation of our national development priorities.” According to Nashandi, green hydrogen is a strategic driver of economic transformation for Namibia under the Sixth National Development Plan (NDP6).

“Our objective is not only to produce for export but to develop industrial capacity locally, to create jobs locally, and also to expand Namibia’s economic base locally,” he said.

In his presentation, Senior Manager for Hyphen Johannes Shipepe said up to N$54 billion is to be spent on Namibian companies for the provision of goods and support for development.

“We need to create as many ready Namibian companies as possible, which is why the enterprise and supplier development programme is important for Hyphen and the green hydrogen industry in Namibia.”

Toni Beukes, Head of Environment, Social and Governance at Hyphen, said the key focus for the organisation is now on implementation through engaging with the Namibian government and other stakeholders.

“We are the catalysts in this mega-opportunity in the country for Namibia,” she said. She added that in May, a delegation representing participating Namibian companies will visit Germany.