Namibia and Germany have signed a Joint Declaration of Intent (JDI) to cooperate in the field of green hydrogen and associated synthetic fuels.
Mines and Energy minister, Tom Alweendo and Germany’s Economic Affairs and Climate Action minister and Vice Chancellor, Robert Habeck signed the JDI on behalf of their respective countries.
According to the JDI, the two countries agreed to cooperate in the production, processing, application, storage and transportation of green hydrogen products for the benefit of both countries.
Under the agreement, the two countries will also cooperate in the field of green hydrogen production and the manufacturing of associated synthetic fuels and green hydrogen products, while contributing to prosperity and employment creation in both countries while protecting the environment.
Habeck expressed his wish to visit NAMIBIA in November with a business delegation after further work has been executed in accordance with the JDoI.
In particular, Minister Habeck noted that he would work on mechanisms to aggregate German demand for Namibian green hydrogen, provide greater visibility for possible off-takes and work with NAMIBIA to reduce the cost of capital for the related capital investments.
The Hydrogen Council estimates that hydrogen demand from the German industry, excluding refineries, will amount to 1.7 billion tons a year and this demand will likely grow.
This comes as in August last year, Germany provided €40 million in funding to boost Namibia’s green hydrogen production, in return for a future cheap supply of the gas.
The funds were to be invested in capacity building and pilot projects for green hydrogen production in the country.
Germany alone is projected to spend €9 billion on its hydrogen plans.
