Preferred bidder for the US$9.4bn hydrogen project in Namibia has been announced by the government.
The country chose HYPHEN to develop the project near the seaside town of Luderitz in southern Namibia. It will be a vertically integrated plant capable of producing 300 000 t/y of green hydrogen and green ammonia for export into regional and worldwide markets from 2026 onwards, after a competitive bidding procedure.
The company will operate the project for a 40-year term after the feasibility study is completed and the project reaches financial close. Presidential Economic Advisor James Mnyupe stated the project was strongly connected with the Namibian government’s strategy for green hydrogen and the Karas area in southern Namibia during a ceremony organized at the COP26 Commonwealth Pavilion.
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Scope of work
The first phases of the project, according to HYPHEN CEO Marco Raffinetti, would include the construction of 2 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. According to HYPHEN director Dr. Tobias Bischof-Niemz, who is also the CEO of ENERTRAG South Africa, the project’s investment represents a “milestone” in Namibia’s desire to become a major international producer of green hydrogen.
The integrated complex, once completed, will have a renewables generating capacity of 5 GW and a 3 GW electrolyzer capacity, with surplus energy capacity to be supplied into the Namibian grid and perhaps into the regional power pool.