SDG Namibia One Fund has signed a Development Funding Agreement with Zhero Europe, committing up to N$95 million (USD 5.15 million) in development funding to advance the Zhero Molecules Walvis Bay Project, an industrial-scale green ammonia facility planned near Walvis Bay in the Erongo Region.
The funding will support development and feasibility work required to move the project towards a final investment decision targeted for 2027, with commercial operations expected to begin in 2030.
SDG Namibia One Fund, also known as Climate Investor Three Namibia, said the commitment is intended to help de-risk the project during its early stages and prepare it for financial close.
“Through its blended finance structure, SDG Namibia One is providing early-stage development capital alongside Zhero needed to de-risk the project and prepare it for financial close. We look forward to working with Zhero to bring this important project from development, through construction and into operation,” said Darron Johnson, Regional Head of Africa at Climate Fund Managers.
The fund is managed by Climate Fund Managers in partnership with Invest International and the Environmental Investment Fund of Namibia, and is backed by the European Union Global Gateway strategy and Invest International.
Once operational, the Zhero Molecules Walvis Bay Project is expected to produce about 500,000 tonnes of green ammonia per year, avoiding an estimated 1.2 million tonnes of carbon dioxide emissions annually.
The project is projected to create around 6,000 jobs during the construction phase and approximately 500 permanent positions, alongside opportunities for Namibian businesses across the value chain.
“The site benefits from exceptional solar resources, ample land and direct access to deep-water export infrastructure at Walvis Bay, making it well suited for industrial-scale green ammonia production,” Johnson said.
According to project details, the facility will be powered by an integrated renewable energy system comprising 3 GW of solar photovoltaic capacity, 2.2 GWh of battery energy storage, a 1.6 GW electrolyser system and about 110 km of new transmission infrastructure. A desalination plant is planned to supply water for the project.
The green ammonia produced is expected to serve global markets, including fertilisers, maritime fuels and industrial feedstocks.
Paolo Gallieri, Chief Operating Officer at Zhero, said the development funding from SDG Namibia One would add to the company’s existing investment in the project.
“Given the deep understanding of the Namibian ecosystem that the Fund brings, we regard this investment as pivotal to the success of this venture. With this support, we are strengthening our ability to deliver a world-class facility that can attract long-term investment, create economic opportunities for the country and contribute to global decarbonisation efforts,” Gallieri said.
SDG Namibia One is a blended finance facility focused on mobilising public and private investment into Namibia’s green hydrogen and broader energy transition sectors.
The fund currently manages about N$1.3 billion (EUR 65 million) in early-stage development funding from European donors and is raising additional capital for construction-phase investments.
“This project shows what Global Gateway cooperation in renewable energy means in practice. Thousands of jobs in Namibia, sustainable industrial development and a new clean energy supply. It can also support Europe’s decarbonisation efforts,” said Jozef Síkela, European Commissioner for International Partnerships.
