The Government and Hyphen Hydrogen Energy on Monday launched the socioeconomic development (SED) framework for Namibia’s landmark US$10-billion green hydrogen project.
The framework is an integral part of the feasibility and implementation agreement (FIA), which demonstrates the government’s commitment to incorporating SED targets for green hydrogen developers in the implementation of Namibia’s green hydrogen strategy.
The SED framework sets out the process to agree on the project’s targets concerning employment, local procurement, skills development, and enterprise and supplier development.
“In partnership with central, regional, and local government, we aim to co-create solutions with local communities as we develop a roadmap for the delivery of a comprehensive SED strategy,” said Hyphen’s Head of Environment, Social and Governance, Toni Beukes.
“It’s our ambition that this project and manner of setting socioeconomic commitments for the project will set a new global benchmark for the sustainable and equitable development of large-scale green hydrogen projects that put inclusive economics and robust environmental sustainability at its heart.”
The FIA governs the process for the development, implementation, and operation of Namibia’s first green hydrogen project, which, when completed, will be sub-Saharan Africa’s largest and only fully vertically integrated green hydrogen project.
“Our chief mission as the Namibian Green Hydrogen Council (GHC) is to ensure that Namibia’s world-class renewable resources are deployed in an equitable manner that leads to the uplift of the Namibian people. The framework announced today (Monday) will ensure that the government, Hyphen, and the Namibian people all have a say in our shared future prosperity as we move forward to capture the benefits of the global decarbonization effort,” said GHC chairperson and National Planning Commission director-general, Obeth Mbui Kandjoze.
Green Hydrogen Commissioner, James Mnyupe, said the project would contribute to the country’s socioeconomic growth and development.
“The hydrogen projects will anchor the construction of thousands of houses, new roads, port facilities, electricity transmission lines, pipelines, desalination plants, and hospitals, among many other necessary infrastructures, making use of existing Namibian skill sets and service providers,” he said.
“In addition to this, local small-, medium-sized, and microenterprises stand to benefit from multibillion-dollar contracts. These could provide opportunities to create generational wealth and sustainable businesses given that some of the green hydrogen projects being contemplated in Namibia are seeking to explore the unlimited renewable energy for multiple decades.”
Hyphen estimates that the project will create up to 15,000 new jobs during the construction phase and 3,000 permanent jobs during its operation upon completion of both phases. There is a target for 90% of these jobs to be filled by Namibians, with 20% specifically targeted for youth.
The company further estimates 30% local procurement of goods, services, and/or materials during the construction and operational phases.
Hyphen is a joint venture between Nicholas Holdings and ENERTRAG.-The Brief/MW
