- Development funding agreement signed to advance an industrial scale green ammonia project on Namibia’s central coast.
- Up to USD 5.15 million committed to support feasibility and development toward a 2027 final investment decision.
- Project positions Namibia as a supplier to global decarbonisation markets while creating jobs and local value
SDG Namibia One Fund, Namibia’s dedicated energy transition and green hydrogen infrastructure fund, has signed a Development Funding Agreement with Italian clean energy developer, Zhero Europe, to advance the Zhero Molecules Walvis Bay Project near Walvis Bay in the Erongo Region.
The project involves the development of an industrial scale green ammonia facility and represents Zhero’s flagship investment in green molecules. The funding will support the completion of development and feasibility activities required to move the project toward a final investment decision targeted for 2027, with commercial operations expected to begin in 2030.
SDG Namibia One Fund, also known as Climate Investor Three Namibia, is managed by Climate Fund Managers in partnership with Dutch development finance institution Invest International and the Environmental Investment Fund of Namibia. The fund is backed by the European Union Global Gateway investment strategy and Invest International, and has committed up to USD 5.15 million in development funding to the project.
Once operational, Zhero Molecules Walvis Bay is expected to produce up to 500,000 tonnes of green ammonia per year, avoiding an estimated 1.2 million tonnes of CO₂ emissions annually. Beyond its contribution to the energy transition, the project is expected to support Namibia’s socioeconomic development by creating around 6,000 jobs during construction and approximately 500 permanent roles during operations, while also stimulating opportunities for local businesses across the value chain.
The facility will be powered by an integrated renewable energy system comprising 3 GW of solar photovoltaic capacity, 2.2 GWh of battery energy storage, a 1.6 GW electrolyser system and 110 kilometres of new transmission infrastructure. A desalination plant is planned to support the project’s water requirements. The green ammonia produced is intended for export to global markets, including fertiliser production, maritime fuels and industrial feedstocks.
Green ammonia is produced by combining green hydrogen generated through renewable powered electrolysis with nitrogen extracted from the air. As a zero carbon fuel and chemical feedstock, it is seen as a critical solution for decarbonising hard to abate sectors where few viable alternatives currently exist.
Commenting on the agreement, Darron Johnson, Regional Head of Africa at Climate Fund Managers, said the project aligns strongly with Namibia’s ambition to build a competitive green hydrogen and ammonia industry. He highlighted the site’s strong solar resources, availability of land and direct access to deep water port infrastructure at Walvis Bay as key advantages.
Through its blended finance structure, SDG Namibia One Fund is providing early stage development capital to help de risk the project and prepare it for financial close, with the aim of crowding in private sector investment at scale during the construction phase.
Author: Bryan Groenendaal
