The Minister of Finance and Public Enterprises, Iipumbu Shiimi says Namibia has the potential to be a major exporter of green hydrogen.
“With vast swathes of arid land and an abundance of sunlight, Namibia is poised to harness solar energy on an unprecedented level. With wind energy, especially along the coastal regions where consistent and strong winds prevail, offers another significant opportunity,” Shiimi said at the Cleanergy Solutions Namibia bricklaying ceremony on the outskirts of Walvis Bay on Thursday.
“These renewable resources have the potential not only to meet Namibia’s domestic energy needs but also to position Namibia as a major exporter of clean energy and goods exhibiting a local carbon content signature, to the region, particularly to Europe.”
The ceremony was held to signify the commencement of a green hydrogen station to be built on a 10-hectare land on Farm 58, situated near the harbour town.
Namibia signed a special Memorandum of Understanding with the European Union (EU) known as the EU ETS (Emission Trading Scheme).
Under the EU ETS, a cap is set on the total amount of greenhouse gas emissions, and emissions allowances are allocated to participating entities.
According to the Minister, the agreement also helps Namibia to have less stringent carbon-based tariffs from the European Union.
“By aligning its industry practices with eco-friendly standards and investing in clean technologies, Namibia cannot only avoid carbon-related tariffs but also solidify its reputation as a responsible and reliable trading partner to the European Union, thus creating the possibility for preferential market access for Namibian products,” said Shiimi.
The project is estimated to cost about N$270 million and is being developed through a joint venture between the Ohlthaver & List (O&L) Group and CMB.TECH, and is expected to be fully operational by mid-2024.
Namibia’s Green Hydrogen Commissioner, James Mnyupe said that he is “excited to see the private sector spend their resources here instead of somewhere else.”
The Cleanergy Solutions Namibia station is a first of its kind in Africa. It will consist of a public refueling service station which will power ships and locomotives.
The project includes a 10-hectare solar park with a hydrogen production facility equipped with a 5 megawatt (MW) Proton Exchange Membrane electrolyser and a 5MW hour battery.
The electrolyser will produce green hydrogen utilising the electricity input from the solar park and the energy stored in the battery energy storage system, whereas a hybrid control system will efficiently manage the electricity flow to ensure stable green hydrogen production and a reliable and stable mini-grid.
Additionally, the project will have a Hydrogen Academy to train future professionals on green hydrogen. In the future, the station will start to produce green ammonia.
This comes as Cleanergy Solution Namibia plans to further build a clean ammonia bunkering facility at Walvis Bay at a cost of more than N$44 billion (€2.2 billion).
Meanwhile, the parties announced that Cleanergy is exploring a partnership with Fortescue, with the aim of making Walvis Bay a clean fuel hotspot in Sub-Saharan Africa. The partnership has the focus to build a green ammonia plant next to the hydrogen production plant.
Operating two divisions of Metals and Energy, Fortescue is a global metals and green energy company, recognised for its culture, innovation and industry-leading development of infrastructure, mining assets and green energy initiatives. Hence, it’s commitment to producing green hydrogen, containing zero carbon, from renewable electricity
Since 2021, O&L and CMB.TECH have been working together to leverage their unique expertise.
“This partnership with the CMB Group is more than a business alliance – it is a convergence of shared values and purpose, and together, O&L and CMB.TECH are crafting a narrative of meaningful impact, one where sustainability, innovation, and collaboration intersect harmoniously,” said O&L Executive Chairman Sven Thieme.
“What truly excites us is the profound impact of this project. It is a catalyst for economic growth, empowers Namibians with expertise, and creates numerous local job opportunities. Through this green hydrogen plant, refuelling station and training centre, we will not only demonstrate the feasibility of hydrogen production in the country but also develop the skills and knowledge needed to sustain this new industry. This plant will be a valuable contribution to the emerging hydrogen industry in Namibia and will provide us with the learnings that we can apply to the future expansion of the project”.
CMB.TECH CEO, Alexander Saverys, said Cleanergy is a very important investment for the CMB Group, being its first major hydrogen production project in Africa, thus aims to prove that green hydrogen can be produced efficiently and cheaply with renewable African sun.
“Our cleantech division CMB.TECH develops maritime and heavy industrial applications that will run on hydrogen: ferries, tugboats, container vessels, but also trucks, locomotives and mining equipment. We are very proud and grateful that we can develop this project in Namibia with a strong Namibian partner O&L to create a true win-win for both our companies and the people of Namibia,” Saverys said.
This comes as President Hage Geingob revealed that Namibia has projects under development, looking to deploy over N$375 billion (US$20 billion) to develop large-scale green hydrogen projects that would provide the world with clean molecules needed to decarbonise hard-to-abate sectors.
