Namibia is targeting its first locally manufactured green fertiliser by the fourth quarter of 2026 through the Dâures Green Fertiliser Project, with about US$17.7 million already mobilised for pilot and proof-of-concept activities in the Erongo Region.
The project is being developed from the Dâures Green Hydrogen Village pilot programme established by Enersense Energy Namibia and is expected to pave the way for one of Southern Africa’s first commercial-scale green fertiliser projects.
The US$17.7 million in pilot funding has been provided by the German Federal Ministry of Education and Research, the United Nations Industrial Development Organisation (UNIDO), the United Kingdom Government and Enersense.
The pilot is expected to generate operational data that will be used to develop and optimise the planned commercial-scale project.
The development received a further boost after SDG Namibia One, part of Climate Fund Managers’ Climate Investor Three Fund, announced on 10 September that it had signed a Development Funding Agreement with Enersense Energy Namibia.
Under the agreement, SDG Namibia One will provide up to US$3.6 million towards a development budget of up to US$7.07 million and will act as co-developer alongside Enersense Energy Namibia.
Namibia Hydrogen Fund Managers Chief Executive Officer Mercia Geises said the project could increase domestic value addition from Namibia’s renewable energy resources while reducing reliance on imported fertiliser.
“The Dâures Green Fertiliser Project aligns strongly with Namibia’s green industrialisation ambitions, creating greater value from the country’s renewable resources by using green hydrogen to produce a critical agricultural input at home,” Geises said.
“By producing low-carbon fertiliser for Namibian and regional markets, the project has the potential to reduce reliance on imports, strengthen agricultural value chains and support food security.”
Geises said the development funding would help move the project towards bankability and create conditions for larger-scale private investment.
Located in the Dâures Constituency, approximately 50 kilometres inland from Namibia’s Atlantic coast, the proposed commercial-scale project is targeting annual production of up to 20,000 tonnes of green ammonia and 80,000 tonnes of ammonium sulphate fertiliser.
The project plans to use 60 megawatts (MW) of solar photovoltaic capacity, 10MW of wind generation and a 65 megawatt-hour battery energy storage system to power a 40MW electrolysis facility.
Green hydrogen produced through electrolysis would be converted into green ammonia and ultimately used to manufacture fertiliser for Namibian and regional markets.
Daures Fertilizer Solutions Interim Chief Executive Officer Martin Nambundunga said domestic production could reduce Namibia’s dependence on expensive fertiliser imports and support increased agricultural production.
“A country cannot truly be independent if it cannot feed its own people, and our farmers cannot produce enough food if we continue depending on expensive fertiliser imports,” Nambundunga said.
“Through this partnership, we are producing fertiliser right here in the desert, using burdened, unfarmable landscapes to unlock the full potential of Namibia’s productive agricultural soils.”
Once operational, the commercial-scale project is expected to avoid approximately 48,000 tonnes of carbon dioxide equivalent emissions annually and create up to 115 permanent jobs.
“Our goal is simple: manufacture these inputs locally to make them accessible to farmers in Namibia and beyond, create jobs, support local industries with cleaner products, and improve livelihoods,” Nambundunga said.
European Commission Director for the Green Deal and Digital Agenda at the Directorate-General for International Partnerships Erica Gerretsen said the development could link Namibia’s emerging green hydrogen industry with agriculture and food security.
“The Dâures Green Fertiliser Project is a powerful example of how green hydrogen can become a driver of agricultural development and food security,” she said.
“By using renewable energy to produce green fertiliser locally, Namibia can reduce its dependence on imports, strengthen the resilience of its agricultural sector and create new opportunities for farmers, businesses and rural communities.”
Invest International Chief Investment Officer Jeroen Plag said green hydrogen could play an important role in reducing emissions from hard-to-abate industries, including fertiliser production.
The latest development funding, provided by the European Union under its Global Gateway strategy and Invest International, will support front-end engineering design, market development, permitting, environmental and social studies and efforts to convert market interest into bankable offtake agreements.
The project is also aimed at strengthening regional fertiliser supply chains and increasing local value addition amid Namibia and the wider Southern African Development Community’s reliance on imported fertiliser.
Financial close for the commercial-scale project is targeted for the second quarter of 2028, with commercial operations expected to begin in the first quarter of 2030.
SDG Namibia One is managed by Namibia Hydrogen Fund Managers, a partnership between Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia.
The Dâures Green Fertiliser Project is SDG Namibia One’s fourth investment, following investments in Hyphen, HyIron’s Oshivela Project and the Zhero Molecules Walvis Bay Project.
