HyIron, a key player in Namibia’s green iron production efforts, is in talks with Toyota for a potential equity investment to secure materials for the automaker’s green steel initiatives.
Green Hydrogen Commissioner James Mnyupe revealed Toyota’s intentions to align with global sustainability commitments at an industry engagement on Monday.
“Toyota is coming to Namibia in December. They’ve already been here twice and are looking at potentially buying equity in this company because they need the output for a steel mill to make green steel,” said Mnyupe.
Mnyupe explained the broader implications of the potential partnership.
“Why green steel? They’re working to reduce emissions in their manufacturing to meet commitments to shareholders getting to carbon neutrality by 2030 or 2040. This is what they call Scope 3 emissions,” he said.
Highlighting the global dynamics of Namibia’s green hydrogen market, Mnyupe said, “People think Namibia is ‘selling hydrogen to Germany.’ Well, Toyota is Japanese, not German. And it’s not National Planning Commission Director-General Obeth Kandjoze calling Japan’s minister of economy, trade and industry; its companies like Hylron engaging with Toyota.”
National Planning Commission Director-General Obeth Kandjoze remarked, “For governments, the best strategy is creating a policy framework that attracts private capital while protecting public interests.”
Kandjoze emphasised Namibia’s strategic approach to resource management, noting that risky businesses, like oil, gas and mining, thrive when funded by investors, not taxpayer dollars.
Mnyupe also addressed the role of blended financing in supporting Namibia’s green projects.
“Through SDG Namibia One, we’re looking to raise a billion US Dollars with US$100 million in grant funding. This fund will help finance equity stakes, like the government’s potential 24% stake in Hyphen, without burdening taxpayers,” he added.
This comes as HyIron’s Oshivela Green Iron Production Plant is nearing completion, with commissioning and testing expected by year-end.
The plant, powered by 25MW of solar energy and 13.4MW of battery storage, is set to produce five tonnes of green iron per hour in its first phase, offsetting 27,000 tonnes of carbon emissions annually.
According to HyIron’s project engineer, Kelvine Amukwaya, the installations are progressing as planned.
“We are now busy finalising the power installation, connecting up the substation area and laying feeder cables to various load points. On the electrolyser, we are just waiting for the electrolyser stacks to come in by the end of the month and further commencing with the plumbing works over the next week or so,” Amukwaya added.
The plant’s first phase, funded 45% by the German government and 55% by private equity, is part of a N$573 million (€30 million) investment.
Phase two, slated for 2026, aims to scale production tenfold, producing 200,000 tonnes of green iron annually with 250MW of solar power and 150MW of battery storage.
