Hyphen Hydrogen Energy (Hyphen) has concluded a N$102.3 million (€5 million) Project Preparation funding facility with the Development Bank of Southern Africa (DBSA) to advance the development of Hyphen’s landmark green hydrogen project.
The facility will be utilized for the partial funding of engineering, environmental, and socio-economic development workstreams related to the project’s development up to the final investment decision.
“This partnership demonstrates the DBSA’s belief in the Hyphen project, set to have a transformational impact on Namibia and its economy. A major theme of the COP28 climate conference this year is international collaboration. Today’s announcement underscores the importance of development finance institutions working with private developers in Africa to drive forward green energy development,” the company said.
Hyphen and DBSA first announced plans to enter into a funding facility on October 24, 2023.
Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said, “Collaboration and partnerships with African lending institutions will be critical to the success of the Hyphen project. This funding facility shows these partnerships in action. It will provide crucial funding for the development and integration of the project, and subsequently, the socio-economic development of Namibia. Hyphen and the DBSA are aligned with the common purpose to drive the future of renewable energy in Namibia and beyond, and we look forward to working together to achieve this.”
Catherine Koffman, Group Executive Project Preparation at DBSA, said the Hyphen Hydrogen project demonstrates the catalytic impact of collaboration between the private sector and development capital.
“The DBSA and Hyphen’s partnership will facilitate the creation of a new asset class in the energy sector with a profound and positive economic, social, and environmental impact in Namibia and the region. Green Hydrogen is a versatile energy carrier that is vital for decarbonizing key sectors of the economy, including hard-to-abate industries like steel and chemicals. The investment emphasizes the bank’s commitment to accelerating the transition to net zero and looks forward to the successful completion of the project,” she said.
Hyphen estimates that the project will create up to 15,000 new jobs during the construction phase and 3,000 permanent jobs during its operation on completion of both phases, with the target for 90% of these jobs to be filled by Namibians, with 20% specifically targeted for youth.
