Hyphen agrees DBSA funding for Namibian green H2 project

Тhe Development Bank of Southern Africa (DBSA) intends to support the further progress of Hyphen Energy’s flagship USD-10-billion (EUR 9.44bn) green hydrogen and ammonia project in Namibia.

The developer, a joint venture between Nicholas Holdings Ltd and German renewables developer Enertrag SE, on Tuesday announced plans to enter into a funding facility with DBSA. The debt is intended to partially finance work related to the proposal’s engineering, environmental and socio-economic development needed to be completed before a final investment decision is taken.

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Hyphen’s flagship project envisages the installation of around 3 GW of electrolysis capacity powered by electricity from about 7 GW of renewables. The huge complex in the Tsau //Khaeb national park will be able to produce one million tonnes of green ammonia per year by 2027. Its output, to be supplied to regional and global markets, is planned to reach 2 million tonnes annually by 2029.

"The Southern Africa region has a crucial role to play in the global green hydrogen race, not only through the leverage of the regions renewable resource, but in the regions participation in the financing of the energy transition,” said Marco Raffinetti, CEO of Hyphen.

Hyphen was selected in 2021 as the preferred bidder to develop and operate the hydrogen hub. The Namibian government took a a 24% stake in the scheme this summer.

(USD 1.0 = EUR 0.944)