28 Dec 2023
Namibia has taken an important next step to realise its massive ten-billion-Euro green hydrogen project by concluding an equity agreement for a 24 percent stake with the company Hyphen Hydrogen Energy.
This milestone was announced at the start of the Christmas weekend.
The country's dedicated green hydrogen blended finance vehicle, which is the designated funding partner of the Namibian government for green hydrogen initiatives, “SDG Namibia One Fund” and Hyphen concluded a share subscription agreement.
The Fund will take up the 24 percent stake in the country’s green hydrogen project near the port of Lüderitz.
The Fund’s equity subscription will be backed by an initial 23 million Euros (about 460 million N$) development funding to the project.
As Hyphen had explained earlier in 2023, for projects of this magnitude, some seventy percent of the funding is raised publicly and thirty percent will be own funding, in this case three billion Euros. Twenty-four percent of three billion Euros translates into 720 million Euros (about 14,4 billion N$).
“SDG Namibia One is a blended finance vehicle focused on green hydrogen projects and related infrastructure in Namibia,” the Fund explained.
Blended finance brings the advantage of reducing transaction costs and accelerating high-quality project development, which leads to quicker investment decisions.
The Fund intends to raise approximately one billion Euros (about 20 billion N$) from public and private investors in Namibia and globally.
The Fund is jointly managed by Climate Fund Managers (“CFM”), a climate-dedicated finance fund manager in the Netherlands and the Dutch development financing entity “Invest International”.
The third managing partner is Namibia's Environmental Investment Fund (EIF), which resorts under the Ministry of Environment and Tourism.
“The EIF’s involvement ensures direct access and ownership for the Namibian government in the project, while CFM and Invest International bring in the required institutional and funding capacity,” the joint statement explained.
The envisaged green hydrogen project within the Tsau ||Khaeb National Park, is Namibia’s first large-scale green hydrogen (GH2) project and the largest in sub-Saharan Africa. After completion it will produce some two million tonnes of green ammonia annually.
Brigitte Weidlich
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