The European Investment Bank has given Hydrogène de France (HDF) Energy a N$179 million (€10 million) grant to implement Namibia’s first green hydrogen power plant.
HDF Energy is developing the Renewstable® Swakopmund, which consists of an 85MW solar park and a green hydrogen production unit, with the facility expected to begin commercial operations in 2024.
The project is expected to enhance local clean electricity generation and grid supporting services, directly contributing to security of electricity supply in the country.
The new green hydrogen partnership was announced by President Dr. Hage Geingob, European Investment Bank President Dr. Werner Hoyer and EU Commission President Ursula von der Leyen during the ongoing COP27.
“This partnership represents a concrete step in delivering Namibia’s clean energy ambition. This new investment demonstrates Namibia’s leadership in green hydrogen.” said President Geingob.
HDF’s Director for Southern and East Africa Nicolas Lecomte said the EIB grant brings the project to financial close next year, a development which will allow construction to start.
“I would like to thank the European Investment Bank for the continuous support to the development in Swakopmund. The signature today is a key step of our longstanding engagement with the EIB for the project that takes us closer to reaching financial close in 2023 and starting construction of the first large-scale green hydrogen project in Africa.” Lecomte said.
Meanwhile, Hoyer said the EIB works with leading partners to support clean energy investment across Africa.
“I am pleased that the EIB is working closely with HDF Energy to harness Namibia’s solar and wind potential and unlock opportunities for the energy transition. Our agreement confirmed at COP27 today with HDF will help to accelerate large-scale deployment of green hydrogen infrastructure in Namibia based on proven investment in South America.”
The HDF agreement was signed by Maria Shaw-Barragan, EIB Director of lending in Africa, Caribbean, Pacific, Asia and Latin America and Nicolas Lecomte, HDF’s Director for Southern and East Africa, and witnessed by Finance Minister Ipumbu Shiimi.
The agreement between HDF Energy and the European Investment Bank was unveiled alongside the announcement of a new sovereign loan facility of close to N$9 billion (€500 million) by Ursula von der Leyen, President of the European Commission and President Geingob, to develop the Namibia’s green hydrogen sector.
