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Namibia sets an ambitious goal to generate substantial revenue from green hydrogen which is an emerging sector for the country in the coming years. This sector is poised to become a significant source of revenue for the government, with estimates of an annual income of N$10 billion.
Namibia sets an ambitious goal to generate substantial revenue from green hydrogen which is an emerging sector for the country in the coming years. This sector is poised to become a significant source of revenue for the government, with estimates of an annual income of N$10 billion.
Just from this first project alone, Namibia might end up earning between N$10-N$11 billion per annum. That’s about 20% of the country’s current total revenue as a government. This substantial revenue boost could have a fiscally impactful effect on the country, promoting infrastructure development and providing significant employment opportunities. Namibia’s green hydrogen vision involves the establishment of three hydrogen valleys across the country. These valleys, located in the Kharas, Erongo, and Kunene regions, are expected to attract private-sector players interested in harnessing Namibia’s abundant wind and solar resources.
The Erongo Region has already garnered attention from Belgian company CMB. Tech, which has partnered with Ohlthaver & List to form a Namibian company, Cleanergy.Cleanergy is currently developing a pilot green hydrogen fuel station at Walvis Bay. Cleanergy aims to develop a €2 billion ammonia facility in the Erongo Region, collaborating with NamPort on the North Port facility for ammonia exportation.
The hydrogen sector’s macro-output benefits extend beyond revenue generation, playing a strategic role in unlocking opportunities in sectors such as oil and gas, mining, and various others. Notably, the labour-intensive nature of the green hydrogen sector presents a significant advantage, potentially creating up to 15,000 jobs during the construction phase of the first project alone. This scale of job creation surpasses previous large-scale projects in Namibia, such as the Husab construction, which generated approximately 3,000 to 4,000 jobs.
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The government recently signed a Feasibility and Implementation Agreement with Hyphen Hydrogen Energy, paving the way to begin groundwork. The US$10-billion project is planned to be developed in phases, with full development targeting 350,000 metric tonnes of green hydrogen production per year from approximately 7GW of renewable generation capacity and 3GW electrolyser. Once fully developed, the project will employ an estimated 3,000 people, with 15,000 construction jobs supported over the four-year construction period. Over 90% of these jobs are expected to be filled by local Namibians.NamPort, the Port of Rotterdam, Hyphen, Gasunie, NamPower, and Invest International also signed a memorandum of understanding for the development of a port at Lüderitz, according to the Ministry of Finance and Public Enterprises.
