By: Creamer media

The loan, sourced from the Sustainable Energy Fund for Africa, will support front-end engineering and design studies for solar and wind generation, battery energy storage systems and electrolyser capacity and desalination infrastructure, thereby derisking the project and attracting the financing needed to implement the project

The first phase of Hyphen's green ammonia project includes 3.75 GW of renewable-energy generation, battery storage, 1.5 GW of electrolyser capacity and supporting infrastructure such as desalination facilities, pipelines, transmission lines and enhanced port facilities.

Once complete, the project is projected to produce two-million tons of green ammonia a year for export to key markets, while contributing to local economic development under a comprehensive socioeconomic development plan embedded in the project's 40-year concession agreement.

The AfDB points out that the project will eventually include 7.5 GW of renewable-energy capacity, which is more than ten times Namibia's current installed electricity generation capacity.

The desalination infrastructure will also deliver three-million litres a day of clean water to the water-scarce region of Lüderitz.

The project is expected to create 15 000 construction jobs and 3 000 permanent positions, with 90% of those jobs reserved for Namibian nationals and 20% specifically targeting youth in a country where youth unemployment exceeds 38%.

"This is about far more than energy infrastructure. It 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," says AfDB Namibia country manager and deputy director-general for Southern Africa Moono Mupotola.

“The AfDB's approval of this pre-investment facility represents a strong vote of confidence in Hyphen’s project and in the broad ambitions of Namibia to develop one of the world’s most transformative green hydrogen projects.

“We are deeply appreciative of the AfDB for partnering with us in the development of this transformative project. This facility will be used to partially fund the technical design phase of the project on our journey to the final investment decision,” comments Hyphen CEO Marco Raffinetti.