The Namibian Government has finalized the acquisition of a 24% equity stake in Hyphen Hydrogen Energy (Pty) Ltd, a Namibian green hydrogen development company.
The investment was facilitated through the SDG Namibia One Fund, a green hydrogen-focused blended finance facility targeting US$ 1 billion to incubate Namibia’s burgeoning green hydrogen sector and its supporting infrastructure.
The announcement, initially made on 22 December 2023, marks a significant milestone in Namibia’s efforts to establish itself as a leader in green hydrogen development.
The SDG Namibia One Fund is managed by Nam-H2 Fund Managers, a joint venture comprising Namibia’s Environmental Investment Fund (EIF), the climate-focused Climate Fund Managers (CFM), and Dutch development financier Invest International.
“Government has worked hard to mobilize development funding to incubate a new industry without taking away any vital resources from the fiscus. This strategic equity stake will enable Government to learn about an emerging industry from cutting-edge developers and equipment fabricators from around the world. This information will be vital in helping the Namibian people craft sustainable energy systems that will support the formation of new industries at home,” Namibia’s Green Hydrogen Commissioner James Mnyupe said.
Mnyupe further noted that “green industrialisation opportunities are beginning to materialize globally and are worth hundreds of millions of dollars. An example is the Industry Decarbonizarion Program from the Climate Investment Funds that is looking to avail envelopes of up to US$250 million to countries that can showcase strong portfolios of green industries and strong commitment from Government. Namibia is a perfect candidate for such a facility but we know South Africa and Kenya are applying for this opportunity too.”
Hyphen Hydrogen Energy, a Namibian-registered company, was awarded rights through a public tender to develop the country’s first large-scale green hydrogen project on state-owned land. The project, a joint venture between ENERTRAG SE and Nicholas Holdings Limited, forms the cornerstone of Namibia’s strategy to create a large-scale green hydrogen industry aimed at fostering economic growth and supporting global decarbonization goals.
Once fully operational, the project is expected to produce 2 million tonnes of green ammonia annually for regional and international markets. It will leverage approximately 7 GW of renewable energy capacity and 3 GW of electrolyzer capacity, reducing global CO₂ emissions by 5-6 million tonnes annually. This reduction exceeds Namibia’s total annual emissions of 4.01 million tonnes in 2021.
Hyphen expressed optimism about its collaboration with the Namibian government and the fund managers, emphasizing the transformative potential of the project for Namibia’s economy and its people.
The SDG Namibia One Fund, also referred to as Climate Investor Three Namibia (CI3 Namibia), was co-designed by the Namibian and Dutch governments to advance the country’s green hydrogen ambitions.
Established in 2023, the fund’s management team, Nam-H2 Fund Managers, is based in Windhoek and led by CFM, with EIF and Invest International as key partners.
