SDG Namibia One Fund has concluded a share subscription agreement with Hyphen Hydrogen Energy, following which the Fund will take up a 24% stake in the Hyphen green hydrogen project.
SDG Namibia One Fund is a dedicated green hydrogen blended finance vehicle and the designated funding partner to Namibia’s green hydrogen initiatives, whose equity subscription will be backed by an initial N$468 million (EUR 23 million) development funding for the project and will seek to raise N$18.5 billion (US$1 billion) from public and private investors in Namibia and globally.
SDG Namibia One Fund is jointly managed by Climate Fund Managers, a climate-centric blended finance fund manager, Dutch development financing institution Invest International, and the Environmental Investment Fund of Namibia (EIF).
“Today’s (Friday) announcement reinforces Namibia’s position as a leader in the global green energy movement and the Government’s continued commitment to realizing the potential of the green hydrogen sector for all Namibians,”
Invest International CEO, Joost Oorthuizen
EIF’s involvement ensures direct access and ownership for the Government of Namibia in the Project, whereas CFM and Invest International bring in the required institutional and funding capacity.
“With the acquisition of a 24% equity stake in the Hyphen Green Hydrogen Project, we are not just investing in a project, but we are catalyzing Namibia’s journey towards global leadership in green hydrogen production. This milestone is also a stepping stone for green industrialization in Namibia, marking our commitment to shaping a cleaner and more sustainable tomorrow,” EIF CEO, Benedict Libanda, said.
Andrew Johnstone, CEO of Climate Fund Managers, said, “Green hydrogen has a pivotal and unique role to play in achieving net-zero targets by 2050. The Hyphen project, groundbreaking in both scale and impact, is a masterclass in how the public and private sectors can work together to unlock the potential of this exciting new sector, driving economic growth for Namibia and a greener, more resilient future.”
Hyphen, whose shareholders include renewable power developer Enertrag and infrastructure developer Nicholas Holdings Ltd, was announced as the preferred bidder in 2021 for the project, which will be developed on 4,000 km² of land within the Tsau ||Khaeb National Park, Namibia’s first fully vertically integrated GW-scale green hydrogen project, and the largest green hydrogen production project in Sub-Saharan Africa.
“Ever since we started working with the Government, we have ensured that this project creates a new global standard for the sustainable and equitable development of international large-scale green hydrogen projects. Namibia’s equity stake and its management through this new fund are truly world-leading and provide a template for future projects in Namibia and abroad. We would like to show our gratitude and thanks to the Government and our partners in this project,” Hyphen Hydrogen Energy CEO, Marco Raffinetti, said.
The Hyphen project, upon completion of Phases 1 and 2, will produce 2 million tonnes of green ammonia (a hydrogen derivative that is easier to transport) annually from ~7 GW of predominantly wind and solar renewable energy generation capacity and ~3 GW of electrolyser capacity, avoiding an estimated 5-6 million tonnes of CO2 emissions a year.
