Southern African nation, Namibia, has secured $114.7 million to finance its flagship Namibia Green Hydrogen Programme (NGH2P).
In its Green Hydrogen Mid-Year Review 2025 report seen by Energy in Africa, the Namibia Green Hydrogen Programme (NGH2P) said the funds will be committed to developing transformative green hydrogen projects, pilot initiatives, commercial developments, and technical consultancy work.
โThis growth is already delivering tangible socio-economic benefits. Over 800 Namibians have been employed across pilot and early-stage projects, while approximately N$170 million (over $9.5 million) has been channelled into local SMEs, reinforcing our localisation agenda and early value-chain development,โ the report read in part.
Funding details for Namibiaโs green hydrogen sector
The report noted that the NGH2P is in talks with the European Investment Bank for a $570.8 million (N$10 billion) loan facility.ย
The proposed loan facility carries a 3.5% interest rate with a five-year grace period.
The programme, in partnership with Namibiaโs Ministry of Finance, submitted a funding proposal to the Climate Investment Fundsโ Industry Decarbonisation Program under the Clean Technology Fund.ย
The requested amount ranged from $50 million to $250 million, with a low-cost facility averaging 1% interest in USD.ย
This funding has been awarded, and the NGH2P is now in the project pipeline stage to select public and private projects for financing.
It is expected to attract a 3:1 ratio in co-financing from other development institutions.
Also, the NGH2P secured $2.7 million in grant funding from Germanyโs Federal Ministry of Economic Affairs and Environment to launch a wind resource measurement campaign.
โInitiated in quarter one 2025, this campaign aims to assess wind resources for renewable energy within the Tsau //Khaeb National Park(TKNP). The primary objective is to collect precise and comprehensive wind data over a 12- to 24-month period,โ the report said.
Green hydrogen projects in Namibia
The report noted the commissioning of HyIronโOshivela near Arandis, which began producing Namibiaโs first green hydrogen-powered iron earlier in March.ย
The facility features a 12MW electrolyser, the largest of its kind in the Southern Hemisphere, positioning Namibia as a regional leader in renewable-powered industrial production.
The Daures Green Hydrogen Village (DGHV), now fully complete, has received additional funding to produce green ammonia for fertiliser.ย
The 15,000-hectare project aims to meet up to one-third of Namibiaโs fertiliser demand during the pilot phase.ย
Backed by $15.7 million, the project integrates solar, wind, water, and housing systems to support national food security.
Cross-border hydrogen pipeline between South Africa and Namibia
The report confirmed that a cross-border hydrogen pipeline pre-feasibility study covering the Western and Northern Cape in South Africa and southern Namibia was completed in December 2024.ย
โThe study confirms that linking hydrogen hubs in Lรผderitz, Boegoebaai, and Saldanha Bay, extending to Gauteng via an eastern corridor, presents a significant opportunity for a resilient hydrogen infrastructure in Southern Africa.ย
โThis system is pivotal for sustainable energy, socio-economic growth, and advancing Namibia and South Africaสผs net-zero goals while positioning both countries as key players in the global hydrogen market.
โA conceptual master plan for the pipeline infrastructure is scheduled between mid-2025 and mid-2026, with an estimated budget of N$30 million ($1.67 million).โ
It is part of Namibiaโs plans to export green hydrogen to power South Africaโs automobile industry.ย
South Africa itself is seeking engineering firms to design and develop its $5.8 billion green hydrogen and ammonia facility in the Eastern Cape.
