The European Union (EU) and the Netherlands have announced a combined grant contribution of N$258 million (€12.9 million) to the SDG Namibia One Fund, aimed at supporting the development of Namibia’s green hydrogen sector.
EU Ambassador to Namibia, Ana Beatriz Martins, made the announcement ahead of the inauguration of the HyIron-Oshivela Project near Arandis on Friday. The fund, a green hydrogen-focused blended finance facility, is targeting US$1 billion to incubate Namibia’s green hydrogen industry and associated infrastructure.
“The SDG Namibia One Fund will receive a contribution of N$258 million from the European Union and the Netherlands,” Martins confirmed.
The facility, which currently holds a 24% equity stake in Hyphen Hydrogen Energy, is managed by Nam-H2 Fund Managers—a joint venture comprising Namibia’s Environmental Investment Fund (EIF), the climate-focused Climate Fund Managers (CFM), and Dutch development financier Invest International.
The announcement coincides with the HyIron-Oshivela Project entering the second phase of its operations, with plans to scale up production from 15,000 tonnes to 200,000 tonnes per year. The project is a joint initiative between Namibian and German companies.
“Prospected offtake agreements with leading European and Asian steel and manufacturing companies are clear signs of the global market confidence in this new product,” said Martins, referring to green iron ore and hydrogen products.
Last month, the HyIron Oshivela plant successfully produced its first batch of green hydrogen, with the production of green iron ore scheduled to begin shortly.
Namibia’s positioning as a clean energy exporter has gained momentum, driven by stringent decarbonisation targets across Europe and regulatory frameworks such as the EU’s Carbon Border Adjustment Mechanism. These developments have placed Namibia in a favourable position to supply clean energy and materials with minimal carbon emissions.
“HyIron and Cleanergy are among the first to complete their initial pilot phases. There are other ventures involving European capital and technology, such as Zhero and Hyphen, which are expected to reach Final Investment Decision by the end of next year,” Martins said.
Currently, six European countries are actively engaged in Namibia’s green energy sector.
During the two-year pilot phase of the HyIron-Oshivela Project, more than 60 Namibian small and medium-sized enterprises (SMEs) were incorporated, while over 400 Namibians gained employment.
The SDG Namibia One Fund, central to Namibia’s green industrialisation ambitions, is jointly managed by Climate Fund Managers, Invest International, and the Environmental Investment Fund of Namibia.
