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Namibia govt announces preferred bidder for green hydrogen project

Tuesday, 09 Nov 2021

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The Namibian government has announced a USD 9.4 billion green hydrogen project to be created near the seaside town of Luderitz in southern Namibia.

HYPHEN had been chosen as the preferred bidder to create a vertically integrated plant capable of producing 3,00,000 tpy of green hydrogen and green ammonia for export into regional and worldwide markets from 2026 onwards, after a competitive bidding procedure.

HYPHEN will have the right to construct and operate the project for a 40-year term after the feasibility study is completed and the project reaches financial close.

The first USD 4.4 billion phases of the project, will include the construction of two GW of renewable-electricity production capacity and electrolyzer capacity to create green hydrogen for conversion into green conversion ammonia.

The project will employ desalinated water, some of which will be distributed to surrounding Luderitz settlements.

In the late 2020s, additional growth stages will bring the overall investment value to USD 9.4 billion, almost matching Namibia’s current gross domestic product.

The integrated complex, once completed, will have a renewables generating capacity of five GW and a three GW electrolyzer capacity, with surplus energy capacity to be supplied into the Namibian grid and perhaps into the regional power pool.