The German development bank could finance the green hydrogen project in Namibia – VivAfrik

Through the German development bank (KfW), Germany plans to grant aid to Namibia for the construction of a $10 billion green hydrogen plant. The future infrastructure which, at full capacity, should produce 20 terawatt hours of electricity per year. 25% of this production would be enough to cover the needs of Namibia and the rest is intended for export to Europe.

Note that the German development bank is currently in talks with the Namibian government and the German-South African consortium, Hyphen Hydrogen Energy. Discussions focus on a possible guarantee or loan from the German state for the construction of a green hydrogen plant in Namibia. This was revealed by anonymous sources familiar with the matter and quoted by Bloomberg on Monday, December 5, 2022.

The development of the green hydrogen production complex located in the coastal town of Lüderitz (southern Namibia) was awarded in November 2021 to the Hyphen Hydrogen Energy consortium following a call for tenders launched by the Namibian government. .

During a visit to Namibia’s capital, Windhoek, German Economy Minister Robert Habeck hinted that the project would receive financial support. “The investment amount of around 10 billion euros is almost equivalent to Namibia’s annual gross national product,” he said, adding that the project is expected to produce green hydrogen and ammonia. for local and international markets.

The project, which will be located near the former colonial port city of Luederitz, will use solar and wind energy for the production of green hydrogen. The latter will then be transformed into ammonia and shipped to other destinations. Namibia’s Skeleton Coast on the Atlantic Ocean is ideal for green hydrogen production due to the abundance of sun and wind.

The hydrogen plant could produce up to 20 terawatt hours of energy, according to Rainer Baake, the German government’s special envoy for German-Namibian climate and energy cooperation. A quarter of this energy would be enough to cover Namibia’s electricity demand, which is currently around 5 terawatt hours. The rest is for export to Europe.

Moctar FICOU / VivAfrik