- The African Development Bank (AfDB) has approved a US$10 million loan to Hyphen Hydrogen Energy, marking a significant step toward the development of Namibia’s multi-billion-dollar green ammonia project.
- The project, valued at more than US$10 billion, is widely viewed as a potential catalyst for positioning Namibia as an early leader in the global green hydrogen economy.
The concessional loan, provided through the Sustainable Energy Fund for Africa (SEFA), will finance front-end engineering design (FEED) studies for key project components, including large-scale solar and wind generation, battery energy storage systems, electrolyser capacity, and desalination infrastructure. By supporting these early-stage technical activities, SEFA aims to de-risk the project and help mobilise the substantial capital required for full-scale development.
SEFA, a multi-donor special fund hosted by the AfDB, offers catalytic finance and technical assistance to unlock private-sector investment in renewable energy and energy efficiency markets across Africa. Its interventions are designed to build a robust pipeline of bankable clean energy projects and enhance the risk-return profile of major infrastructure investments.
Hyphen’s project is set to harness Namibia’s world-class renewable energy resources along the country’s south-western coastline. The first phase includes 3.75 GW of renewable energy generation, battery storage capacity, 1.5 GW of electrolysers, and extensive supporting infrastructure such as desalination facilities, pipelines, transmission lines and upgraded port facilities in Lüderitz. All components are being developed to meet stringent environmental and social performance standards.
At full operation, the project is expected to produce 2 million tonnes of green ammonia per year for export to international markets. It also includes a comprehensive socio-economic development plan embedded within its 40-year concession agreement to ensure broad-based local benefits.
The development is projected to deliver substantial climate and socio-economic gains. It will avert an estimated 5 million tonnes of CO₂ emissions annually, equivalent to taking more than one million cars off the road, while rolling out 7.5 GW of renewable power, more than ten times Namibia’s current installed generation capacity. The project will also supply 3 million litres of desalinated water per day to support the water-stressed community of Lüderitz.
“This is about far more than energy infrastructure,” said Moono Mupotola, AfDB Country Manager for Namibia and Deputy Director General for Southern Africa. “This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet. Namibia is showing the world that Africa is not just participating in the green economy, we are defining it.”
Hyphen Hydrogen Energy CEO Marco Raffinetti welcomed the Bank’s decision, describing it as a strong endorsement of both the project and Namibia’s broader green hydrogen ambitions. “We are deeply appreciative of the African Development Bank for partnering with us in the development of this transformative project. This facility will partially fund the technical design phase on our journey to the final investment decision,” he said.
Daniel Schroth, the AfDB’s Director for Renewable Energy and Energy Efficiency, emphasised SEFA’s strategic role: “SEFA’s intervention is catalytic. By supporting these essential pre-investment activities, we are unlocking billions in project financing. This is a strategic, high-impact development project.”
The project is expected to generate 15,000 construction jobs and 3,000 permanent positions, with 90% reserved for Namibians and 20% specifically earmarked for youth, a critical intervention in a country where youth unemployment exceeds 38%.
Viewed as a flagship initiative under the Namibian government’s Southern Corridor Development Initiative, the Hyphen project is anticipated to have a strong demonstration effect across the continent, particularly for other African nations endowed with vast renewable energy resources.
Author: Bryan Groenendaal
