Name of the Project
Hyphen green hydrogen project.

Location
Tsau//Khaeb National Park, near Luderitz, in Namibia.

Project Owner/s
Green hydrogen development company Hyphen Hydrogen Energy is a joint venture between Nicholas Holdings Limited and ENERTRAG, but the Namibian government confirmed in June 2023 that it would take up a 24% equity stake in the project.

Project Description
The development of Namibia’s first large-scale, vertically integrated green hydrogen project will be completed in phases.

The first phase of the green ammonia project includes 3.75 GW of renewable-energy generation, battery storage, 1.5 GW of electrolyser capacity and supporting infrastructure such as desalination facilities, pipelines, transmission lines and enhanced port facilities.

This phase aims to produce 175 000 t/y of green hydrogen, to be further processed into one-million tonnes a year of green ammonia for export to Europe.

After Phase 2, the project will have solar and wind electricity generation capacity of 7 GW, and electrolysis of 3 GW, which will yield about 350 000 t/y of hydrogen, subsequently translating into two-million tons of green ammonia.

The project is expected to reduce CO₂ emissions by five- to six-million tonnes a year.

The desalination infrastructure will also deliver three-million litres a day of clean water to the water-scarce region of Lüderitz.

Potential Job Creation
The project is expected to create 15 000 construction jobs and 3 000 permanent positions, with 90% of those jobs reserved for Namibian nationals and 20% specifically targeting youth in a country where youth unemployment exceeds 38%.

Capital Expenditure
$10-billion.

Planned Start/End Date
A final investment decision (FID) for the first phase of one-million tonnes a year is expected by the end of 2027.

Phase 1 production is expected by 2028. 

Phase 2 production is expected at the end of 2030.

Latest Developments
Development finance institution the African Development Bank Group has selected Hyphen Hydrogen Energy for a prospective $5.93-million reimbursable grant under the Sustainable Energy Fund for Africa (SEFA) Green Hydrogen Programme.

The grant will contribute towards the development of Hyphen's project up to FID.

Key Contracts, Suppliers and Consultants
ILF (services, technical expertise, as well as procurement, contract advice and socioeconomic development goals); Development Bank of Southern Africa (funding partner); Climate Fund Managers (equity partner).

Contact Details for Project Information
Hyphen Energy, email info@hyphenafrica.com.