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Hyphen Hydrogen Energy, Namibia – update

Artist's impression of the Hypeh Hydrogen Energy project

Photo by Hyphen Hydrogen Energy

2nd June 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Hyphen Hydrogen Energy.

Location
Tsau//Khaeb National Park, near Luderitz, in Namibia.

Project Owner/s
Hyphen Hydrogen Energy has been appointed as the preferred bidder to develop the project. It will operate the project for a 40-year period, following the conclusion of the feasibility study and sign-off from the Namibian government.

Hyphen is a Namibian-registered green hydrogen development company, specifically formed to develop green hydrogen projects in Namibia for international, regional and domestic supply.

Hyphen’s shareholders are Nicholas Holdings, a strategic investment and infrastructure project developer, and renewable-energy company ENERTRAG.

Project Description
The development of Namibia’s first large-scale vertically integrated green hydrogen project will be completed in phases.

Phase 1 will create 2 GW of renewable electricity generation capacity to produce green hydrogen for conversion into green ammonia. This phase aims to produce 120 000 t/y of green hydrogen, to be further processed into 700 000 t/y of green ammonia for export to Europe.

After Phase 2, the Hyphen project will possess solar and wind electricity generation capacity of 5 GW and 3 GW of electrolysis, which will yield about 300 000 t/y of hydrogen, which translates into 1.7-million tons of green ammonia.

The project is expected to displace five- to six-million tonnes a year of carbon dioxide emissions.

Potential Job Creation
About 15 000 construction jobs will be created during the four-year construction period, with an estimated 3 000 permanent jobs being employed once the project is fully developed. More than 90% of these jobs are expected to be filled by Namibians.

The Government’s GH2 strategy, which envisages up to 50 equivalently sized projects as Hyphen’s, may result in 200 000 permanent jobs in wind and solar alone, not including the downstream and upstream industries also included in government’s plans.

Capital Expenditure
The first phase of the project will cost $4.5-billion; Phase 2 will cost $9.5-billion.

Planned Start/End Date
Following the conclusion of the necessary contractual arrangements with government, Hyphen will complete all the necessary feasibility, engineering and permitting processes to allow for construction to start in January 2025, with commissioning of the first phase expected by the end of 2026.

Latest Developments
Hyphen Hydrogen Energy signed the feasibility and implementation agreement (FIA) with the Namibia government on May 23. The agreement governs the process for the development, implementation and operation of sub-Saharan Africa’s biggest, and its only fully vertically integrated, green hydrogen project.

Under the FIA, Hyphen is responsible for the technical, financial, environmental, social and commercial delivery of the project.

The Namibia government is responsible for providing the land on which the project will be established, and developing and implementing the required legal, fiscal and regulatory environment necessary for the establishment and sustainable operation of Namibia’s green hydrogen industry.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Hyphen Energy, email info@hyphenafrica.com

Edited by Creamer Media Reporter

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