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Home Green Hydrogen

Namibia secures €200 million EU backing for green industry plans

by reporter
August 5, 2025
in Green Hydrogen
7
A A

The European Union (EU) and its member states, through the Team Europe initiative and development finance institutions, have committed over €200 million (approximately N$4.1 billion)in grants to support Namibia’s broader green industrialisation agenda.

Chargé d’Affaires of the EU Delegation to Namibia, Ian Dupont, said the support spans multiple sectors, including renewable energy, infrastructure development, and skills enhancement.

“Most of the investment comes from European companies, and the EU is expected to be the primary offtake market, together with Asia. Team Europe, comprising the EU, its Member States, and development finance institutions, has committed over €200 million in grants to support Namibia’s green industrialisation,” he said.

As part of these efforts, the EU has launched a new Technical Assistance Project aimed at strengthening the Namibia Training Authority (NTA) to improve Technical and Vocational Education and Training (TVET) aligned with the green transition.

Speaking at the launch, Dupont said the EU’s partnership with Namibia remained its most significant in trade and development, with most investments coming from European companies. He said the EU was expected to be a primary offtake market for Namibia’s green industrial output, alongside Asia.

“Our support is comprehensive: from capacity building and financing to infrastructure, CSO engagement, and skills development. We are working together in renewable energy, green industrialisation, and even green maritime corridors,” Dupont said.

He stressed that developing a skilled Namibian workforce was at the core of the EU’s cooperation, with the NTA positioned to play a central role in coordinating skills development across the green economy.

Dupont added that the objective was to align training programmes with the needs of the labour market while ensuring resources were used effectively.

 “We will strengthen the NTA’s coordination role in skills development across the green industrialisation. We want to ensure that resources are used effectively, avoid duplication, and align training programmes with the demands of the labour market,” he said.

Namibia’s high unemployment rates, with women at 48.5% and youth at 46.1%, make job creation and skills development urgent priorities. Dupont said the EU’s involvement was aligned with Namibia’s Green Hydrogen and Derivatives Strategy of 2022, which seeks to attract investment, boost manufacturing, and create jobs through leveraging the country’s renewable energy potential.

“Economic growth, job creation, and skills development must go hand in hand. Namibia’s Green Hydrogen and Derivatives Strategy provides a clear national vision. It positions Namibia as a global leader, leveraging its renewable energy potential and strategic location to attract investment, create jobs, and boost local manufacturing,” he said.

He highlighted the achievements of the PRo-VET project, co-funded with GIZ, which has strengthened vocational training through the establishment of the Northern Training Hub.

The hub includes the Nakayale, Eenhana, and Valombola Vocational Training Centres, providing specialised training in agriculture, construction, and renewable energy.

 “A flagship achievement was the creation of the Northern Training Hub, comprising the Nakayale, Eenhana, and Valombola Vocational Training Centres. These centres of excellence offer young Namibians access to skills development, especially in sectors like agriculture, construction, and renewable energy,” Dupont said.

With the new project launch, the EU and its partners will now focus on developing a new Energy Training Hub in Namibia’s southern regions. Dupont said collaboration with the NTA, training providers, and private sector actors would be key to ensuring the availability of a skilled workforce to support green industrialisation projects.

“We are working with NTA, training providers, and private sector partners to develop a new Energy Training Hub in the South. To unlock the full economic potential of green industrialisation, we need a skilled Namibian workforce. That’s why today matters,” he said.

Dupont also provided an update on the EU–Namibia Strategic Partnership on Sustainable Raw Materials and Renewable Hydrogen, launched in 2022.

He noted that within three years, Namibia had positioned itself as a frontrunner in green hydrogen, with over €20 billion in investment projects in the pipeline.

Companies such as Cleanergy, Daures, and HyIron had already completed pilot phases and commenced production in 2025.

“In less than three years, we have already seen remarkable progress. Namibia successfully positioned itself as a frontrunner in GH2, with several large-scale potential investment projects in the pipeline, representing over €20 billion in projected investment,” Dupont said.

He cited HyIron’s Oshivela Project in Arandis as a milestone, describing it as the world’s first facility producing direct reduced iron using green hydrogen. The project employed over 400 Namibian engineers and skilled workers and contracted more than 60 local companies during construction.

“HyIron is the world’s first facility producing direct reduced iron using GH2 and houses southern Africa’s largest electrolyser. More importantly, it hired over 60 Namibian companies during construction and employed 400 Namibian engineers and skilled workers,” Dupont said.

He noted that Phase 2 of HyIron, supported by a German steelmaker offtake agreement, is expected to create an additional 1,000 jobs for young Namibians starting in 2026.

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