Germany is considering providing aid for a €10 billion hydrogen project in Namibia, according to Bloomberg, citing people familiar with the matter. The country’s state-backed development bank, KfW, is currently in talks with the Namibian government and the German-South African consortium Hyphen Hydrogen Energy about a possible state guarantee or loan.
Hyphen was appointed preferred bidder by the Namibian government to develop the first green hydrogen project in Namibia for export. The project aims to annually produce 1 million mt/y of green ammonia by 2027.
The project, which will be located near the town of Luederitz, will use solar and wind power for the production of green hydrogen, which would then be turned into ammonia and shipped to Germany. The players said Namibia’s Skeleton Coast on the Atlantic Ocean is ideal for green hydrogen production due to an abundance of sun and wind.
German energy giant RWE AG is currently building a second ammonia terminal back in Germany, and recently signed a Memorandum of Understanding (MOU) with Hyphen that could see it offtake up to 300,000 mt/y of green ammonia.