Namibia will soon implement four green hydrogen pilot projects worth N$892 million after it received a N$500 million grant from the German Government.
This comes as the country has ambitions to be one of Africa’s first green hydrogen export hubs. The government is banking on green hydrogen to attract more than US$6 billion in foreign direct investment (FDI) which is anticipated to generate annual revenues in excess of US$800 million, while also contributing to its much-anticipated Sovereign Wealth Fund.
James Mnyupe, Namibia’s Hydrogen Commissioner, said the projects are expected to secure additional capital to commence operations.
“The idea is they will be expected to raise money from other places besides the grant funding. We are only helping them to start their journey. So, the N$10 or N$15 million in grant makes it easier for them to raise the rest commercially,” he said on Tuesday.
Mnyupe said the commission will soon engage the project managers to establish a scientific way to distribute the N$500 million grant.
“Some of the pilot projects are a bit wealthier compared to the others, so those ones might get a smaller portion of their ask, compared to other projects that are more needy, which will get a larger portion of their ask. Some might get 80%, some 60% or 30%,” he said.
He added that the economic impact of the four projects will exceed the N$500 million committed by the German government towards the initiative.
“In actual fact the actual investment in the economy will be more than the N$500 million as you have ascertained because of the actual size of the projects,” Mnyupe said.
The projects by Namport, Daure Project, Cleanergy and TransNamib will secure the funding as part of the Harambee Prosperity Plan two (HPPII) economic recovery plan and will assist with job creation and knowledge transfer for SMEs.
Of the projects, the N$253 Daure Green Hydrogen Project to be located in the Erongo region, proposes to realize the production of green hydrogen & ammonia and utilization of its derivatives.
The project plans for Sustainable production of green hydrogen based on renewable energies, establishment of green scheme program for ammonia nitrate crops. The project Partners are NGHRI, University of Stutgard, Enapter, Windwise and Enersense Nam.
The Green Hydrogen Applications in the Port Environment, whose project partners are Cleanergy Solutions Namibia, CMB Germany GmbH & Co. KG, Namport and the University of Namibia, is proposing to build a N$96 million 5 MW Electrolyser and H2 mobile refueller in the Walvis Bay Port.
The strategic targets of this project include converting an existing tugboat to operate on hydrogen dual fuel technology, converting existing port equipment to operate on hydrogen dual fuel technology and to develop green hydrogen bunkering and refuelling infrastructure at the port.
The H2-Diesel Dual Fuel Locomotives project in the logistics sector, plans to convert 50 locomotive fleet to GH2 dual fuel with the set location of Walvis Bay to Kranzberg corridor in Namibia, through TransNamib.
The project has an estimated value of N$128 million and the partners are CMB.TECH, the University of Namibia, Hyphen Technical, TransNamib, NGHRI and Nicholas Holding.
According to the project Overview, “the following major components to be developed, implemented during the course of the project to achieve the project goal, one Locomotive converted for the use of H2 as fuel, through repowering of the locomotive with a new rail engine that is H2-ready.”
The last project is the H2 Refuelling Station, which has a project phase value of N$418 million and consists of a 5 MW photovoltaic solar system, a 5 MW electrolyser and a H2-refuelling station.
The purpose of the plant is to test technologies, to develop offtake applications within the transport sector, mining sector and port activities and to facilitate technology transfer and skills development into Namibia.
Furthermore, “building upon the lessons learned with the pilot plant, a second phase with a bigger commercial plant including ammonia production is planned,” said Mnyupe.
This project is a joint venture between CMB.TECH, Ohlthaver & List Group and Cleanergy Solutions Namibia.
Hyphen Hydrogen Energy was awarded two bids to construct Namibia’s inaugural green hydrogen projects, aiming to produce 1Gigawatts of electricity and create over 15 000 jobs.
