Hyphen Hydrogen Energy (Hyphen) says Namibia has the potential to generate significant economic value through the production and export of green hydrogen estimated at a staggering N$653 billion ($35 billion) annual exports.
Hyphen’s CEO Marco Raffinetti said the country, rich in renewable resources, is poised to become a major player in the global hydrogen energy market with its abundant sun and wind, coupled with vast available land for infrastructure development.
According to Raffinetti, Namibia has the potential to produce 150 GW of electrolyzers and 250 GW of Wind/Solar PV systems.
Raffinetti said this commitment showcases the company’s dedication to scaling up clean energy infrastructure and transitioning towards a sustainable future.
“To achieve these goals, Hyphen has outlined a comprehensive plan. The company intends to add 10 GW of new wind/solar PV capacity each year, ensuring a steady growth trajectory. Additionally, they plan to install 5 GW of electrolyzers annually, thus establishing a perpetual manufacturing operation for these crucial components,” he said.
As a result of the above, the CEO noted that the economic benefits of Namibia’s hydrogen industry extend beyond export earnings.
Raffinetti predicted that the establishment of a hydrogen energy sector in Namibia would create around 200,000 permanent jobs in wind and solar alone.
“This development would not only boost the country’s economy but also provide significant employment opportunities for its citizens,” he said during an engagement on Thursday.
Raffinetti highlighted the increasing demand for green hydrogen in various sectors and emphasizes the significance of finding ways to decarbonize industries that heavily rely on hydrocarbons.
“Industries such as heavy transportation, rail, and shipping face challenges in decarbonization with traditional batteries. The weight and limitations of batteries make them impractical for long-distance transportation. Green ammonia emerges as a promising alternative, as it can be combusted in ship engines, resulting in a 98% reduction in greenhouse gas emissions,” he explained.
Consequently, the potential economic value of Namibia’s hydrogen export market is staggering, Raffinetti estimates that by 2050, the traded global hydrogen derivative alone could be worth close to N$18.6 trillion (US $1 trillion).
“This value represents a seismic shift in the energy market, as carbon-based fuels are replaced by green hydrogen. The total global energy market is projected to reach around US$1.7 trillion, with Namibia’s potential share amounting to an impressive US$870 billion,” he said.
In May, Government signed a Feasibility and Implementation Agreement with Hyphen Hydrogen Energy, paving the way to begin groundwork.
The US$10-billion project is planned to be developed in phases, with full development targeting 350,000 metric tonnes of green hydrogen production per year from approximately 7GW of renewable generation capacity and 3GW electrolyzer.
Green Hydrogen Commissioner James Mnyupe forecasts the country to earn between N$10-N$11 billion per annum from green hydrogen.
