Hyphen Hydrogen Energy recently announced the beginning of its latest project, which is a green hydrogen project to be based in Namibia. After the announcement of the new project, through a collaboration with the Development Bank of South Africa (DBSA), the companies were granted a 5-million-euro loan for the project.
The Namibian green hydrogen project will be worth $10bn overall, therefore, due to the size and nature of this project, this loan will make a significant and necessary contribution to the development of this project. The money will also accelerate the development, so that the project can reach the point of becoming operational faster and consequently, benefit Namibia as soon as possible.
The loan, secured by DBSA and Hyphen Hydrogen Energy, was announced at COP28 and will go towards the project’s development and will be divided between separate areas which require funding. These areas will include engineering, environmental and socio-economic work for the project’s development, all the way through to the final investment decision (FID).
The innovative new project has been developed with the expectation that once it is in full scale operation by 2030, it will be capable of producing 2 mtpa of green ammonia. The project will have a 3GW electrolysis capacity and will be powered by 7GW of renewable electricity generation.
Due to the development of this project, on Wednesday 6th of December 2023, at COP28, Hyphen was officially recognised as a “Low Carbon Hydrogen Energy Transition Changemaker”.
CEO of Hyphen Hydrogen Energy, Marco Raffinetti, “Collaboration and partnerships with African lending institutions will be critical to the success of the Hyphen project. This funding facility shows these partnerships in action. It will provide crucial funding for the development and integration of the project, and subsequently, the socio-economic development of Namibia. Hyphen and the DBSA are aligned with the common purpose to drive the future of renewable energy in Namibia and beyond, and we look forward to working together to achieve this.”
The Group Executive Project Preparation at the DBSA, Catherine Koffman, mentioned, “The DBSA and Hyphen’s partnership will facilitate the creation of a new asset class in the energy sector with a profound and positive economic, social and environmental impact in Namibia and the region.”