RWE eyes green ammonia offtake from USD-10bn Namibian H2 hub

RWE AG (ETR:RWE) and Hyphen Hydrogen Energy (Pty) Ltd, the preferred bidder for a USD-10-billion (EUR 9.5bn) green hydrogen project in Namibia, will explore options for the German firm to export green ammonia from the South African country.

The companies have signed a Memorandum of Understanding (MoU) that could see RWE offtake up to 300,000 tonnes of green ammonia annually, the German energy major said on Friday.

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A year ago, Hyphen was chosen to develop a gigawatt-scale green hydrogen production hub within the Tsau //Khaeb National Park. The multi-phase project envisages the addition of 5 GW to 6 GW of renewable energy generation capacity and 3 GW of electrolysers to produce roughly 350,000 tonnes of green hydrogen annually at full scale.

Construction of the 125,000-tonne-per-year first-phase facility is expected to commence in January 2025, with its commissioning expected to take place by the end of 2026. The complex will produce one million tonnes of green ammonia annually.

Earlier this year, RWE announced plans to build a terminal in Brunsbuettel near Hamburg to handle the import of about 300,000 tonnes of green ammonia per year. The proposed facility could be an import point for the Namibian ammonia, according to the statement.

"Green molecules are the only way for many industries in Germany to achieve their climate targets," said Ulf Kerstin, Chief Commercial Officer of RWE Supply & Trading.

(USD 1.0 = EUR 0.954)