By: Tanzania times

The African Development Bank’s Board of Directors has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian developer, to support a landmark green hydrogen project in the country. The concessional funding, sourced from the Bank’s Sustainable Energy Fund for Africa (SEFA), will finance front-end engineering design studies for the project's renewable energy, storage, and desalination infrastructure, thereby de-risking the venture and mobilizing further financing.

The $10 billion project is designed to leverage Namibia’s world-class solar and wind resources. Its first phase aims to deploy 3.75 gigawatts of renewable generation capacity alongside 1.5 gigawatts of electrolyzers to produce green ammonia for export. Once fully operational, the project is projected to generate 2 million tons of green ammonia annually, averting 5 million tons of CO2 emissions per year and supplying 3 million liters of clean water daily to the water-scarce Lüderitz region.

Bank officials and the project developer emphasized the initiative’s transformative potential. Moono Mupotola, the African Development Bank’s Country Manager for Namibia, stated that the project demonstrates Africa’s capacity to lead the global energy transition. Hyphen CEO Marco Raffinetti acknowledged the loan as a critical vote of confidence that will help advance the project toward a final investment decision.

Beyond its environmental impact, the project is expected to create significant socio-economic benefits, including 15,000 construction jobs and 3,000 permanent positions, with 90% reserved for Namibian nationals. Positioned as a flagship of Namibia’s green industrialization strategy, the project is anticipated to have a demonstration effect across the African continent.