The Nedbank Group has committed to continue funding the development of renewable energy, which has the potential to deliver positive long-term sustainable outcomes for South Africa, Namibia, and the rest of the African continent.
“We at Nedbank are no strangers to supporting the development of renewable energy,” says Tjivingurura Mbuende, Executive: Corporate and Investment Banking.
He said with the world moving toward developing renewable or green energy, Namibia’s proposed hydrogen project is an indication that the country is moving in the right direction.
“The recent drive by the Namibian government to develop the US $9.4 billion green hydrogen project in Namibia fits into the Nedbank Group’s long-term plans for funding renewable energy. Nedbank Namibia views this development as an important step toward Namibia becoming a major producer of renewable energy, given the country’s high potential for wind, solar, and hydrogen energy,” Mbuende said.
He added that Nedbank Group’s energy finance division recognises the importance of sustainable power across the African continent and the role of independent power producers in the private sector.
“To date, Nedbank has committed to funding 42 projects in South Africa through the Renewable Energy Independent Power Producer Procurement Programme. In 2019, Nedbank became the first bank in South Africa to list a renewable energy bond in the green segment of the Johannesburg Stock Exchange (JSE). Nedbank uses investment proceeds from the new bond to deliver financial support to solar and wind renewable energy projects. We’re committed to financing and supporting the entire value chain, from power infrastructure developers to contractors and original equipment manufacturers,” Mbuende said.
He said the development of the hydrogen project in Namibia will necessitate investments in transmission infrastructure, port facilities, wind, and solar resources, projects which the Nedbank Group has shown an interest in funding across Africa.
“Nedbank believes renewable energy will help increase Namibia’s electricity production at a faster rate over the next decade, and that clean energy is expected to make Namibia a more attractive destination for energy investment compared to its neighbours who depend on coal plants and hydro power,” the Nedbank Executive said.
The Namibian government recently announced plans to develop a green hydrogen project in the Tsau-Khaeb National Park. The project is expected to produce 300,000 tonnes of green hydrogen per year, either as pure green hydrogen or as green ammonia, destined for regional and global markets.
