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Namibia signed a contract for a 2 million ton green hydrogen ammonia synthesis project

2023-06-01

The government of the Republic of Namibia and Hyphen Hydrogen have signed a $10bn green hydrogen project, the largest in sub-Saharan Africa.

Following the approval of the Namibian Cabinet on May 23, 2023, the Namibian government signed a Feasibility and Implementation Agreement (FIA) with Hyphen Hydrogen Energy on Thursday to build a $10 billion project to produce 2 million tonnes of green hydrogen ammonia. Hyphen will be responsible for the technical, financing, environmental, social and commercial operations of the project and the Namibian government will be responsible for providing land, legal, financial and regulatory support for the development of a homegrown green hydrogen industry.

The deal between GRN and Hyphen is expected to help Namibia become one of the world's leading centres for green hydrogen production because of its abundant wind and solar resources. Under the two-carbon target, FIA is expected to set a global benchmark for sustainable development of large-scale green hydrogen projects.

FIA is divided into five stages in sequence:

1. Preliminary phase: lasts for six months to meet all the prerequisites of FIA; The Namibian Government exercised its option to purchase a 24 per cent interest in the project.

2. Feasibility stage: For two years, Hyphen was responsible for evaluating the feasibility of the project development.

3. Validation phase: After Hyphen submitted the feasibility report, the Namibian government verified (if applicable) the final project design.

4. Financing and construction phase: Hyphen was responsible for the fund raising and construction of the project.

5. Operational phase: Hyphen will be responsible for the operation and maintenance of the project.

Mr Hyphen said the project was expected to produce 1m tonnes of ammonia a year by 2027, with total production by 2029.

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