Namibia is poised to become a key player in decarbonising carbon-intensive industries through the Iron-to-Hydrogen (I2H) initiative, driven by the Green Hydrogen programme and the HyIron-Oshivela, a new study shows.
According to a study by the Climate Neutrality Foundation, I2H is the first of its kind and Namibia’s ample solar resources make it an ideal location for this process, which offers a more affordable pathway to hydrogen production than traditional methods like electrolysis and ammonia cracking.
The cost of producing hydrogen through imported DRI is around €402/MWh, markedly cheaper than alternatives such as Germany’s electrolysis (€425/MWh) or ammonia cracking (€581/MWh).
“A first plant for the direct reduction of iron ore using hydrogen produced with very cheap electricity from photovoltaic systems is currently being built in Namibia and will start production at the end of 2024. Imported green iron can be used not only for steel production, but also for electricity generation,” the report read.
The I2H technology, detailed in CNF’s latest study, is a cost-effective method that uses renewable energy, particularly solar, to convert iron ore into Direct Reduced Iron (DRI).
In combination with steam (H₂O), the DRI releases hydrogen (H₂), which can then be used for energy generation.
The HyIron-Oshivela project is scheduled to start by late 2024 in Namibia’s Erongo Region and is set to spearhead DRI production.
By leveraging local iron ore reserves and renewable energy, Namibia is not only advancing its clean energy capabilities but also attracting significant global investment.
According to a release by the Namibia Green Hydrogen project, the project promises job creation, skill development and economic growth, boosting Namibia’s appeal as a sustainable industrial hub.
Beyond economic benefits, this breakthrough reinforces Namibia’s commitment to climate goals, showcasing a model of green industrialisation, the release read.
“The I2H technology symbolises a new era for Namibia, not only in energy innovation but as a leader in science, technology, engineering, and mathematics (STEM). This groundbreaking contribution to global climate goals underscores Namibia’s role in realising a sustainable and scalable model of green industrialisation, setting an example for the world to follow,” it read.
