Namibia’s dedicated green hydrogen blended finance vehicle, SDG Namibia One Fund, has forged an agreement with Hyphen Hydrogen Energy to acquire a 24% stake in the latter’s $10-billion green hydrogen development.

The Fund will contribute €23 million ($25.1 million) to support the development of Hyphen Energy’s Tsau – Khaeb Green Hydrogen project, which stands as the first large-scale green hydrogen facility in Namibia and the largest in sub-Saharan Africa.

Benedict Libanda, CEO of the Environmental Investment Fund of Namibia, highlighted that the Fund's involvement will not only bolster project development but also propel Namibia towards global leadership in hydrogen production, marking a significant milestone for green industrialization.

With a planned capacity of 7 GW of renewable energy and 3 GW of electrolyzer capacity, the project aims to produce two million tons of green hydrogen for local and foreign markets, thereby reducing Namibia’s carbon footprint by five to six million tons annually. The initiative is expected to bolster economic growth, generating 15,000 jobs and 3,000 permanent positions during construction and operation across Phases 1 and 2.

Andrew Johnstone, CEO of Climate Fund Managers, emphasized the pivotal role of combining private and public sector financing in helping Namibia achieve its 2050 net-zero targets through the optimal deployment of renewable energy projects.

The Fund, jointly managed by Climate Fund Managers, Invest International, and the Environmental Investment Fund of Namibia, aims to raise $10 billion to support Namibia’s green hydrogen strategy.

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