- Hyphen Hydrogen Energy agreed on a deal with the government of Namibia for the next phase of a $10 billion green hydrogen project that will export to Europe once complete.
- A Hyphen spokesperson said the tender process was open to all bidders and subject to a rigorous adjudication process.
On Wednesday, Hyphen Hydrogen Energy agreed on a deal with the government of Namibia for the next phase of a $10 billion green hydrogen project that will export to Europe once complete, according to the two parties. Hyphen, whose shareholders include Germany-headquartered Enertrag, was announced as the preferred bidder in 2021 for the project in the Namib Desert’s Tsau.
Officials said the feasibility and implementation agreement was officially signed on Friday, as some community activists raised concerns over a perceived lack of transparency around the considerable deal that costs as much as the country’s gross domestic product. The plant, to be built in phases, will eventually produce 2 million tonnes of green ammonia a year for regional and global markets when it reaches full-scale output, which is anticipated before 2030.
Namibia, one of the world’s sunniest and most sparsely populated countries, wants to harness its solar and wind energy potential to produce green hydrogen and position itself as a renewable energy hub in Africa. But it remains to be seen whether the water-scarce country, relatively far away from key export markets, will be able to deliver a cost-competitive product in an emerging global hydrogen sector, said analysts.
A Hyphen spokesperson said the tender process was open to all bidders and subject to a rigorous adjudication process opposing views of lack of transparency. Over the past year, Hyphen has signed memoranda of understanding with several potential European customers, to which it aims to supply about 750,000 tonnes of green ammonia annually, it said. President of the European Commission Ursula von der Leyen said in the same statement, “Namibia has the potential to become one of the main renewable energy hubs on the African continent and worldwide.”