Government picks first fruits from “green hydrogen” chimera – gets free stake in Hyphen
A Memoranduim of Understanding signed this week between the Namibian Government and a string of European partners, at last revealed that the so-called Green Hydrogen for which Namibia is singled out, will go to the European market as an energy substitute.
The MoU between Namport, the Port of Rotterdam, Hyphen, Gasunie, Nampower and Invest International represents the entire value chain from where the hdrogen will be produced (Hyphen) to the point of export (Namport) to the point of import in Europe (Port of Rotterdam) to the distribution agent (Gasunie) for onward distribution to European manufacturers. The entire chain will be bankrolled by Invest International, a Dutch development finance institution that has been mandated by the Dutch Government to invest in strategic infrastructure in emerging markets.
The Namibian Government will by agreement obtain the right to 24% shareholding in Hyphen Hydrogen Energy (Pty) Ltd, a Namibian registered green hydrogen development company, specifically formed to develop green hydrogen projects in Namibia for international, regional and domestic supply.
The Environmental Investment Fudn of Namibia (EIF) will play an active role as conduit for channelling the funding from the European financiers to the local investment vehicle. The EIF will partner with two Durch companies, Climate Fund Managers and Invest International.
An amount of approximately N$850 million will be provided by the investors as upfront capital extended as grant funding.
At the signing of the MoU, the Namibian Government issued Hyphen with an official notice indicating that it will take up its 24% equity stake in the hydrogen manufacturer.
EIF Chief Executive, Benedict Libanda said: Global partnership is of paramount importance to advance green hydrogen development, especially considering the nascent nature of the sector. Collaboration among countries, industry stakeholders, and international players is vital to overcome technological challenges, scale up production, and establish a global sustainable hydrogen economy. By joining forces, we can pool resources, share knowledge, and accelerate the transition to a low-carbon future powered by green hydrogen.”
