Hyphen Hydrogen Energy has secured a prospective US$5.93 million (about N$106 million) reimbursable grant from the African Development Bank Group (AfDB) as it works towards a final investment decision (FID) on the first phase of its green hydrogen project in southern Namibia by the end of 2027.
The funding, provided through the Sustainable Energy Fund for Africa’s (SEFA) Africa Green Hydrogen Programme, will support project development activities required to advance the project towards FID.
The latest backing follows a US$10 million reimbursable grant awarded to Hyphen in December 2025, increasing development finance support for the planned green hydrogen and ammonia project.
Hyphen was one of four projects selected under the Africa Green Hydrogen Programme following a call for proposals that attracted 81 submissions from 18 African countries. The company said its US$5.93 million allocation was the largest among the selected projects.
At full scale, Hyphen plans to develop about seven gigawatts (GW) of renewable energy generation capacity and three GW of electrolyser capacity.
The project is targeting production of about two million tonnes of green ammonia annually for regional and international markets, including sustainable fuels for the shipping and aviation sectors.
The first phase is expected to have annual green ammonia production capacity of about one million tonnes, with Hyphen targeting FID by the end of 2027.
“Hyphen is delighted to have been selected under the African Development Bank’s Africa Green Hydrogen Programme. This selection is a major endorsement of our project’s quality, rigour and advanced maturity,” Hyphen Chief Executive Officer Marco Raffinetti said.
AfDB Director for Renewable Energy and Energy Efficiency Daniel Schroth said the programme was intended to move African green hydrogen projects closer to investment readiness.
“Africa’s exceptional renewable energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market. Through the SEFA-funded AGHP, the African Development Bank is helping to move high-potential projects closer to investment readiness,” Schroth said.
Hyphen estimates that construction of the project could create up to 15,000 jobs, while about 3,000 permanent operational positions could be supported once both phases are completed.
The company is targeting 90% Namibian employment, with 20% of jobs earmarked for young people.
Raffinetti said support from development finance institutions would be important as the project progresses towards FID.
“Strategic backing from African and international lending institutions is vital as we advance through this crucial project preparation phase toward FID. Together with our partners and the Government of Namibia, we remain focused on delivering a world-class green hydrogen hub,” he said.
Hyphen estimates that the project could avoid between five million and six million tonnes of carbon emissions annually once fully developed.
