A $10 billion pact that was just signed by the president of Namibia calls for the production of “green hydrogen,” a renewable energy source that proponents believe will be the fuel of the future, between Namibia and the German business Hyphen Energy.
In order to build the project in the Tsau Khaeb National Park, Hyphen Energy and the Namibian government finalized a multibillion-dollar agreement last Friday. Hyphen will construct plants, pipelines, and ports with the aim of producing 2 million tons of ammonia by 2030 if a study deems the idea feasible.
Ammonia, a fuel that might be manufactured utilizing renewable energy sources like solar and wind power, would be created in this way. Additionally, the facility would generate electricity and oxygen for local use.
Hyphen Energy has agreements with businesses from Germany, England, South Korea, and Japan, according to James Mnyupe, Namibia’s green hydrogen commissioner and economic adviser to the president, who spoke to Voice of America. These agreements will secure purchasers for the company’s primary goods.
He claimed that the green hydrogen project would be vertically integrated.
“In other parts of the world, you might get one player developing the port, another player developing the pipelines, another player developing the renewable energy and so on and so forth, whereas this project, we are envisioning to do all of that under one umbrella and that is what a vertically integrated project looks like,” he said.
Obtaining finance for green hydrogen projects is a huge undertaking, according to Marco Raffinetti, chief executive officer of Hyphen, but the investments are essential if the world is to reduce the carbon production from fossil fuels, which is what causes climate change.
Alternative energy sources, like solar energy, were reportedly exceedingly expensive 20 years ago but have since grown more affordable, according to Raffinetti. He claimed that green hydrogen might travel in the same direction.
However, the rapid adoption of the scheme being led by the presidency has aroused concerns among Namibian political advisers. They wonder whether there is genuinely widespread support for the initiative.
Political analyst Pendapala Hangala voiced some concerns about the initiative in an interview with VOA.
“This is a 45-year project and 40-year project, and … I don’t think it went through the right due process, and it is not clear what is going on because we are also looking at critical raw material… It’s a comprehensive project, which is being fast-tracked, that is my concern,” he said.
This green hydrogen project is reportedly the biggest of its kind in sub-Saharan Africa. As other countries like Morocco are developing green hydrogen projects, Namibian commentators wonder what competitive advantage Namibia would have with exports over countries closer to Europe, the main buyer.