Guest Contributor | Feb 27, 2024 | 0
Hyphen secures €5 million funding with Development Bank of Southern Africa
Hyphen Hydrogen Energy (Hyphen) and the Development Bank of Southern Africa (DBSA) on Thursday announced the finalisation of a €5 million Project Preparation funding facility.
The allocated €5 million will be directed to finance various elements of Hyphen’s green hydrogen project in southern Namibia, such as engineering, environmental studies, and socio-economic initiatives leading up to the final investment decision.
This collaboration underscores DBSA’s confidence in the transformative potential of the Hyphen project, anticipated to have a substantial impact on Namibia’s economy.
Hyphen forecasts the creation of approximately 15,000 jobs during the construction phase and 3,000 permanent positions upon the completion of both project phases.
“Notably, the goal is to have 90% of these positions filled by Namibians with a 20% focus on youth employment. At the heart of this year’s COP28 climate conference lies a significant emphasis on global cooperation, making today’s announcement a testament to the crucial role played by development finance institutions partnering with private entities in driving green energy initiatives across Africa,” said Hyphen in a statement announcing the funding arrangement.
The plans for the funding facility were initially disclosed by Hyphen and DBSA on 24 October.
Hyphen’s Chief Executive, Marco Raffinetti highlit the critical nature of collaborations with African financial institutions for the success of the Hyphen project.
“This funding facility epitomizes the power of these collaborations in action. It will offer essential support for the project’s development and integration, subsequently fostering socio-economic growth in Namibia. Both Hyphen and DBSA share a unified vision to steer the future of renewable energy, not just in Namibia but also beyond. We eagerly anticipate our joint efforts in realizing this shared goal,” he added.
Meanwhile, DBSA Group Executive Project Preparation, Catherine Koffman emphasized the catalytic impact of partnerships between the private sector and development finance.
“The Hyphen Hydrogen project embodies the transformative influence stemming from the collaboration between private enterprise and development capital. Our partnership with Hyphen will pave the way for a new energy asset class, generating profound positive impacts economically, socially, and environmentally in Namibia and the broader region. Green Hydrogen stands as a versatile energy carrier crucial for decarbonizing pivotal sectors such as steel and chemicals. This investment underscores the bank’s dedication to expediting the transition to net-zero emissions and anticipates a successful culmination of the project,” she concluded.