Development finance institution the African Development Bank Group (AfDB) has selected green hydrogen development company 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 final investment decision (FID). At full development, Hyphen's project in Namibia will comprise about 7 GW of renewable generation capacity and 3 GW of electrolyser capacity.

The project targets the production of two-million tonnes of green ammonia a year for regional and global markets, including sustainable fuels for shipping and aviation, with FID for the first phase of one-million tonnes a year expected by the end of 2027.

Hyphen's project is positioned to deliver a transformational socioeconomic impact for Namibia. Construction could create up to 15 000 jobs and potentially 3 000 permanent operational jobs upon completion of both phases of the project.

Further, the project is targeting that 90% of the jobs are be filled by Namibians, with 20% specifically reserved for local youth.

The project will also contribute significantly to global decarbonisation efforts by cutting five-million to six-million tonnes of emissions a year, which exceeds Namibia's total national carbon footprint.

“Strategic backing from African and international lending institutions is vital as we advance through this crucial project preparation phase toward FID. Together with our partners and the government of Namibia, we remain focused on delivering a world-class green hydrogen hub that drives local socioeconomic growth, creates jobs and positions Namibia as a global leader in the energy transition,” says Hyphen Hydrogen Energy CEO Marco Raffinetti.

“Africa's exceptional renewable-energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market. Through the SEFA-funded Africa Green Hydrogen Programme (AGHP), the AfDB is helping to move high-potential projects closer to investment readiness,” says AfDB Renewable Energy and Energy Efficiency director Dr Daniel Schroth.

Hyphen was selected as one of four projects following a highly competitive process under the AGHP’s call for proposals, which received 81 submissions across 18 African countries.