HyIron has secured its first off-take agreement with German steel manufacturer Benteler, which will see the supply of 200,000 tonnes of direct reduced iron (DRI) annually.
The project commenced operations with a state-of-the-art 12MW electrolyser, the largest of its kind in Southern Africa, capable of producing 15,000 tonnes of DRI annually in its first phase.
“It’s one thing to build something new and to have a vision for green industrialisation. Today, we announced our first off-take agreement for a Namibian green product, sold for the long term and with the potential to justify the next development phases,” co-founder of the HyIron-Oshivela project Johannes Michels said.
Located near Arandis, the initiative taps into Namibia’s solar and water resources, paving the way for sustainable production.
“Imagine Namibia emerging as a leading producer of green iron by 2030. The Erongo Region is transforming into a hub of opportunity and innovation powered by Namibians’ strength and skill,” Namibia’s Minister in the Presidency Christine //Hoebes said at a site visit this week.
She said HyIron has plans to expand the project in subsequent phases, with N$3.8 billion (€200 million) earmarked for Phase 2 and N$52 billion (€2.5 billion) for Phase 3.
“HyIron envisions a workforce exceeding 1,500 individuals, as they operate a facility with a capacity of 2 million tonnes per annum right here in the mighty Erongo Region, sourcing iron ore from Opuwo and the Northern Cape, all while producing 100,000 tonnes of green hydrogen utilising Namibia’s abundant solar and water resources— what an extraordinary prospect,” she said.
//Hoebes noted that this transformation will touch multiple sectors such as construction, energy, logistics and technology, “ensuring we create lasting skills for our workforce and reinvest resources into our communities.”
The project is expected to reduce Namibia’s carbon emissions by 88% by the end of the decade, showcasing its commitment to sustainability.
During construction, HyIron employed over 400 workers and collaborated with 60 local companies, injecting over N$90 million into the economy and ensuring 17% of the project value remained in Namibia.
“We’ve already proven that Namibia can deliver world-class results. The world needs 2 billion tonnes of what we’ll produce here, and we’re just getting started with 15,000 tonnes. Together, we’ll grow this impact,” Michels added.
HyIron plans to commence with green iron production by early 2025. In its first phase, the plant will produce five tonnes of green iron per hour, relying entirely on the 25MW solar plant and 13.4MW of battery storage to operate only during the day.
HyIron’s project engineer, Kelvine Amukwaya recently said the first phase of the €30-million project, which began construction in 2023, is funded to the tune of €13 million (45%) by the German government (BMWK), through a grant, and 55% by private equity.
He also explained that the second phase, planned for 2026, will increase capacity tenfold, utilising 250MW of solar power and 150MW of battery storage, enabling round-the-clock operations. This expansion will push production to 200,000 tonnes of green iron per year.
“For the second phase, we are planning to build a plant that will be 10 times larger than our current facility. This will involve approximately 250 to 260 megawatts of solar PV capacity, coupled with around 150 megawatt-hours of battery storage. Battery storage is essential for stabilising our off-grid system,” he said.
This comes as international markets such as Japan, Germany and South Africa have shown significant interest in importing green iron from Namibia. HyIron is in talks with Toyota for a potential equity investment to secure materials for the automaker’s green steel initiatives.
