Namibia is set to generate N$330 million in annual land rentals once operations commence at Hyphen Hydrogen Energy (Hyphen) for a 40-year period for the green hydrogen development company’s billion-dollar project.
In total , the Namibia government could generate over N$13.3 billion in land rental income.
According to Hyphen’s Head of Environment, Social and Governance (ESG), Toni Beukes during the feasibility study period, which spans two years and is currently underway, Hyphen, the designated company, will be paying €6 million per annum (approximately N$100 million) for the lease of the land during this phase.
“It’s an absolute lease. What’s happening now is the government will allocate a lease to Hyphen for the next two years,” Beukes said.
“As part of the Request for Proposal (RFP), the government has stipulated that Hyphen will pay €6 million per annum for the land lease during the feasibility phase, which amounts to roughly N$100 million per annum in Namibia dollars.”
Following the successful completion of the feasibility study, she added that the lease cost will increase significantly to N$330 million per year, marking the beginning of the 40-year lease period.
Beukes said that the lease represents a major financial boon for Namibia and the revenue generated from this land lease will be instrumental in funding critical infrastructure and socio-economic projects across the country.
“The agreement also aims to promote cooperation among developers, with the intention for common user infrastructure to be co-owned and operated on a nonprofit basis. This collaborative approach fosters a conducive environment for sustainable development while ensuring long-term benefits for all stakeholders involved,” she said.
Beukes delivered these remarks during a media launch for the company’s Socio-Economic Development framework (SED) which is set to be officially launched in Keetmanshoop, on Monday, 24 July.
This comes government signed a Feasibility and Implementation Agreement with Hyphen Hydrogen Energy in May, paving the way to begin groundwork a US$10 billion (N$187 billion) project.
The project is planned to be developed in phases, with estimates of full development targeting 350,000 metric tonnes of green hydrogen production a year from ~7GW of renewable generation capacity and ~3GW electrolyser.
The project once fully developed will employ an estimated 3,000 people, with 15,000 construction jobs supported over the four-year construction period. Over 90% of these jobs are expected to be filled by local Namibians.
