A project of superlatives is being developed in Namibia. A new plant for the production of green hydrogen is being planned. The project has met with both approval and criticism.
Namibia, Photo: Unsplash
Mammoth project on green hydrogen
In the fight against climate change and the expansion of renewable energies, green hydrogen is also increasingly becoming an issue. One project in Namibia in particular is currently making headlines. The company Hyphen Hydrogen Energy is planning a mammoth project in the south of the country. If those responsible have their way, the gigantic plant for splitting water into oxygen and hydrogen will be completed before the end of the decade. From then on, it could produce two million tons of ammonia every year and ship it all over the world. Over 14,000 square kilometers of concessions in the Tsau Khaeb National Park are earmarked for this purpose. It is not only the sheer size that sets standards. Around 7,000 megawatts of electricity will be required in the future to enable the splitting and processing operations. The current maximum consumption of the entire country is just over 600 megawatts. Additional infrastructure will also need to be expanded. For example, a new desalination plant, kilometers of pipelines and finally a new port in Lüderitz.
Hydrogen is a gas and does not occur in its pure form in nature - which is why it must first be extracted from water. Photo: Unsplash
Of inventions and participants
These are major investments. At the same time, the project holds enormous economic opportunities for Namibia. James Mnyupe, the Namibian government’s special envoy for hydrogen, says: “We know that this particular project could bring in almost 20 percent of the state’s current tax revenue. This figure is linked to tax levies, license fees and the leasing of the required areas in the national park. Namibia also wants to become a 24 percent shareholder in the project. Previous shareholders of Hyphen are the German public limited company Enertrag and the British Nicholas Holdings.
Namibia must now invest 90 million US dollars within the next six months. As the project is currently still in the development stage, the costs remain within an affordable range. However, as soon as the project comes to a financial conclusion, the costs could increase dramatically. Mnyupe points out that the government would then have to decide whether to hold all the shares or rather invest money in developing the necessary infrastructure for the use of green hydrogen and ammonia in Namibia itself.
So far, none of the projected two million tons of ammonia have been earmarked for local use. On the contrary, Hyphen Hydrogen Energy has already signed letters of intent with interested foreign parties to purchase the raw material. These include the German energy supplier RWE, the South Korean hydrogen company Approtium and an unnamed European chemical company. The investments in Namibia are therefore not without controversy.
Cooperation at eye level?
Germany in particular has an inglorious past in Namibia. The country was under German colonial occupation from 1884 to 1915. During this time, atrocious crimes were committed against the population. The genocide of the Herero and Nama by German troops is estimated to have claimed up to 100,000 victims – and has never been recognized as genocide by the German government. A project such as the Hyphen hydrogen factory therefore also has a major political dimension. During joint government negotiations, the German government and the German Development Ministry (BMZ) pledged support for urban planning in the area surrounding the planned production facilities in Lüderitz and for the training of skilled workers. Further funding is planned for climate adaptation, the protection of biodiversity and improvements to the water supply.
Criticism and outlook
Last year, for example, Joseph Isaacks, Chairman of the Kharas Regional Council, criticized the lack of involvement of regional politicians in the development of the project. Following an invitation to sign the feasibility agreement, he now praised Namibia’s President Hage Geingob for his vision for the planned hydrogen industry. Before the vision becomes reality, comprehensive environmental and feasibility studies will be carried out over the next two years. Obeth Kandjoze, Chairperson of the Namibian Government Committee for Green Hydrogen, is confident about the future of his country: “Namibia must take its rightful place as a clean energy hub in Africa!”