Cabinet sanctions green hydrogen pact

Cabinet this week approved a highly-anticipated green hydrogen feasibility and implementation agreement (FIA) with Hyphen Namibia.The project - with a projected total capital investment of about N$192.5 billion – will be the country’s first.According to a document by Hyphen, Namibia has the opportunity to become a co-investor in the ground-breaking project and as part of this arrangement, government will hold the right to acquire up to 24% equity interest, enabling it to actively participate in the project’s development and future success.“Government... has so far mobilised more than €40 million [N$826.4 million] to de-risk its equity investment in the project, associated infrastructure and future green hydrogen projects. Additional support is expected to be announced post the execution of the FIA.“Under the FIA, government is responsible for ensuring that Namibia is equipped with the necessary legal, fiscal and regulatory environment to enable the implementation of the project. Hyphen is responsible for the technical, financial, environmental, social and commercial delivery of the project, which - if finally approved by government - will then be implemented by Hyphen,” it read.Anticipated to reach full-scale development before the end of the decade, the project aims to produce a staggering two million tonnes of green ammonia annually, catering to both regional and global markets.The FIA, a pioneering agreement that is scheduled to be officially signed today, will govern the entire process.New global benchmarkAccording to a joint statement, due to the limited international precedence in this field, the Namibian government - alongside the inter-ministerial green hydrogen council - assembled a negotiation team that received support from international advisors.“Their collective efforts have resulted in the development of the FIA, which is poised to set a new global benchmark. It is expected to serve as a template for the sustainable and equitable development of similar green hydrogen projects worldwide.”Recently, Namibian Sun reported that Namibia compiled a team of highly-skilled experts from Oxford University, the University of Cape Town, the World Bank and the Centre for Law Development Programme in the United States to help draft its synthetic fuel law.This team will report to the ministries of justice and mines and energy, and will be compensated with funds from grants Namibia received from Germany and the European Union.CriticalMeanwhile, a World Bank report revealed that several changes to existing Namibian laws and the establishment of new entities have been mooted as the country prepares to put its green hydrogen plans in motion.The establishment of an "independent and strong regulator and a clear, fair and comprehensive regulatory framework for the green fuels sector in Namibia will be critical to the successful development of the sector", it recommended.The report further recommended that the proposed Land Bill of 2016, which seeks to prohibit the acquisition of customary land rights by foreign nationals without prior approval from the agriculture ministry, should not be enacted since this would likely cause investor and bankability concerns.jemima@namibiansun.com

Cabinet sanctions green hydrogen pact

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Namibian Sun 2025-04-03

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Cabinet sanctions green hydrogen pact

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Namibian Sun 2025-04-03

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