At the Namibia Green Hydrogen Programme, we aim to write a weekly mini-series, covering key national topics, that are at the fore of the Green Hydrogen Industry in Namibia, which will be transformational for the country and most importantly its citizens. We have already seen success stories of students receiving bursaries, the start of local pilot projects in partnership with domestic and international organisations, some of which will already produce green hydrogen within this calendar year. In this first topic we cover why and how Namibia is an attractive investment destination for green hydrogen opportunities.
Green hydrogen has emerged as a promising clean energy source, offering a sustainable alternative to fossil fuels. As the world transitions towards a low-carbon economy, countries are increasingly looking towards green hydrogen as a key component of their energy mix.
Namibia, with its abundant renewable energy resources and strategic location, has immense potential to become a hub for green hydrogen production and export. Moreover, there is opportunity to further valorise green hydrogen into low carbon manufactured products and create localised value-chains in the economy.
Solar and wind energy can be leveraged to produce green hydrogen through electrolysis. The country’s vast and sparsely populated desert areas provide ample space for large-scale renewable energy projects, making Namibia an ideal location for green hydrogen production. Germany is already recognising the Hyphen Hydrogen project, to be set up in Namibia, as a strategic operation, placing Namibia on the international stage as an attractive hydrogen investment destination.
One of the key investment opportunities in Namibia’s green hydrogen sector lies in the development of renewable energy infrastructure. Investing in solar and wind farms, as well as the necessary transmission and distribution infrastructure, can help establish a strong foundation for green hydrogen production. These investments not only support green hydrogen production but also contribute to the overall development of Namibia’s renewable energy sector. Creating a source of renewable energy and feeding it into the Southern African Power Pool via transmission lines has huge investment opportunity potential.
Another investment opportunity lies in the establishment of component manufacturing for solar and wind energy equipment, and perhaps even component electrolyser and battery manufacturing facilities. These are all ingredients for the production of green hydrogen, and establishing local manufacturing and assembly facilities can help reduce costs and create employment opportunities.
Adding to the investment opportunity set, is the ability to create local value chain economies, in which green hydrogen is used as an energy source to fabricate green manufactory products. There are ample opportunities to invest in green manufacturing hubs and their exportation linkages. Key examples of such investment opportunities include: hydrogen fuel derivatives, hot briquetted iron, green lithium/cobalt/copper, flat glass and green steel. There is already significant interest and traction underway being made by the HyIron pilot project intending on doing just that.
Importantly, Namibia’s strategic location makes it an attractive destination for green hydrogen exports. The country’s proximity to major markets in Europe and Asia and linkage into key shipping routes, provide a competitive advantage for exporting green hydrogen, and products manufactured with green hydrogen. Investing in the necessary infrastructure, such as hydrogen storage and port infrastructure facilities, can help facilitate the export of green hydrogen from Namibia to global markets.
We will see significant infrastructure development in the form of increased housing, more roads, more town infrastructure in regions close to the hydrogen projects, which are simply not currently suitable to accommodate these projects. This expansion will occur in Lüderitz, Aus, Walvis Bay, Swakopmund, Arandis, and other urban centres, which offers an abundance of investment opportunities.
Other investment opportunities are found in research and development (R&D) in Namibia’s green hydrogen sector. R&D investments help drive innovation and technology development, leading to cost reductions and efficiency improvements in green hydrogen production. Collaborations between local universities, research institutions, and industry players can further accelerate the development of the green hydrogen sector.
Such cooperation is already emerging in Namibia through various pilot projects, such as in the Daures Hydrogen project, which has R&D partners such as UNAM, Universitat Stuttgart and Enersense Namibia and who plan on growing tomatoes using green hydrogen derivatives within this calendar year.
Namibia offers a plethora of investment opportunities in the green hydrogen sector. When companies invest in green hydrogen projects accompanied by public investments in support infrastructure, Namibia will not only reduce its carbon footprint but also position itself as a leader in sustainable energy production.
The stars are aligned for green hydrogen production and green industrialisation to take Namibia to a new growth trajectory by engaging its abundant renewable energy resources, strategic location, and commitment to sustainability.
This is just the beginning of the success stories and impact of this industry and we are excited to share the news which is to come.
*Nikol Hearn is Head of Transactions of the Namibia Green Hydrogen programme
