The African Development Bank’s Board of Directors has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian green hydrogen company, to support a green ammonia project valued at over $10 billion. The initiative has the potential to position Namibia as a leader in the global green hydrogen economy. The loan, sourced from the Sustainable Energy Fund for Africa (SEFA), will finance front-end engineering design studies for solar and wind generation, battery energy storage, electrolyser capacity, and desalination infrastructure, helping de-risk the project and attract further investment.
SEFA, a multi-donor special fund, provides catalytic finance and technical assistance to overcome market barriers, improve project pipelines, and enhance the risk-return profile of renewable energy investments. The project leverages Namibia’s world-class solar and wind resources, with the first phase including 3.75 GW of renewable energy generation, 1.5 GW of electrolyser capacity, battery storage, and supporting infrastructure such as desalination facilities, pipelines, transmission lines, and upgraded port facilities—all designed to meet high environmental and social standards.
Once operational, the project is expected to produce 2 million tons of green ammonia annually for export, while contributing to local economic development through a comprehensive socio-economic plan embedded in the 40-year concession agreement. The initiative will also prevent 5 million tons of CO₂ emissions annually, deploy 7.5 GW of renewable energy capacity—more than ten times Namibia’s current installed capacity—and supply 3 million liters of clean water daily to the water-scarce Lüderitz region.
African Development Bank officials emphasized that the project demonstrates Africa’s capacity to lead the global energy transition, create quality jobs, and drive sustainable prosperity. The pre-investment facility is seen as a vote of confidence in both Hyphen Hydrogen Energy and Namibia’s ambitions, enabling critical technical design work needed to reach the final investment decision. SEFA’s support is considered catalytic in unlocking billions in financing and advancing high-impact renewable energy development.
The project is expected to generate 15,000 construction jobs and 3,000 permanent positions, with 90% reserved for Namibian nationals and 20% specifically targeting youth, addressing the country’s high youth unemployment rate of over 38%. Positioned as a flagship initiative under Namibia’s Southern Corridor Development Initiative, the Hyphen green hydrogen project is anticipated to have a demonstration effect across Africa, inspiring other nations with abundant renewable energy resources to pursue similar transformative projects.
