Government may release a second request for proposal (RFP) early next year for the development of another large-scale green-hydrogen complex, having announced a preferred bidder for the first such project in early November.
Presidential Economic Adviser James Mnyupe told delegates to the virtual Africa Green Hydrogen Forum on November 23, that Namibia may make an announcement on the new RFP at the World Economic Forum, scheduled to take place in Davos, Switzerland, from January 17 to 21.
Namibia used the side-lines of the COP26 climate gathering to announce that it had selected a preferred bidder for a $9.4-billion green hydrogen project to be developed in the Tsau//Khaeb National Park, near the coastal town of Luderitz, in southern Namibia.
HYPHEN was selected as the preferred bidder to build a vertically integrated project able to produce 300 000 t/y of green hydrogen and green ammonia for export into regional and global markets from 2026 onwards.
Mnyupe said the Namibian government intended holding 24% of the equity in the facility, but that it was still assessing its funding options, including the raising of possible concessional finance and green bonds.
It was also possible that the stake would be divided between some of the countries State-owned enterprises, while work was also under way to establish a sovereign wealth fund, which would invest proceeds from the project.
The Namibian government saw the initial hydrogen project as a potential “spark” for the broader industrialisation of Luderitz, where green zinc, green fertiliser and green rail opportunities could also be pursued, along with the sale of renewable electricity into the Southern African Power Pool.
Mnyupe indicated that similar initiatives could be rolled out to other parts of Namibia, including in the Erongo and Kunene regions.
The government is banking on green hydrogen to attract more than US$6 billion in foreign direct investment (FDI) which is anticipated to generate annual revenues in excess of US$800 million.–mining weekly
