Govt and Hyphen sign US$10 billion project agreement

By Staff Reporter  

Namibian Government (GRN) and Hyphen Hydrogen Energy (Hyphen) have signed the Feasibility and Implementation Agreement (FIA) at an official signing ceremony held at State House in Windhoek recently.

The FIA governs the process for the development, implementation and operation of sub-Saharan Africa’s largest, and its only fully vertically integrated, green hydrogen project.

The partnership between GRN and Hyphen represents the first step in Namibia’s journey to unlocking its potential of becoming one of the world’s leading green hydrogen production hubs, by leveraging Namibia’s world leading co-located wind and solar resource, vast open spaces and stable investment climate underpinned by strong democratic values.  The FIA is expected to set a global benchmark for the sustainable development of large scale green hydrogen projects as the world looks to decarbonise its energy systems in a manner that is fair, just, economically inclusive and environmentally sustainable.

Central to the FIA is a dedication to driving the socio-economic development of Namibia, through job creation and local procurement. During the construction phase, it is estimated that the project will create around 15,000 new job opportunities and 3,000 permanent positions during the operational phase. Hyphen is striving for 90% of these jobs filled by Namibian talents, with a specific focus on the youth (18 – 35) of 20%. The project is targeting 30% local procurement for goods, services and materials throughout both the construction and operational phases.

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

Namibian president , Dr. Hage Geingob said that “Thank you very much Hyphen for trusting our political system and our corporate governance architecture. Let us now work together and we will deliver for the Namibian people.”

Mr.Marco Raffinetti, Chief Executive Officer of Hyphen Hydrogen Energy, stressed that “The signature of the FIA today is the culmination of 18 months of exceptionally hard work by the Government, its advisors and the Hyphen team to develop what I truly believe sets the global benchmark for the development of large scale sustainable green hydrogen projects.  I would like to extend our humble thanks and appreciation to the entire Government team and their advisors for their unrelenting dedication and hard work to achieve this momentous milestone. We look forward to working in partnership with Government over the coming years to turn the foundation agreed today into reality as Hyphen looks to play its part of being the first stepping stone in Namibia’s journey to becoming a major player in the green hydrogen sector and generating significant socioeconomic benefits for the country.”

Chief Executive Officer of ENERTRAG SE , Dr Gunar Hering, said that”With today’s signed agreement, we have set a framework, that will serve as a stepping stone, launching Hyphen into its destiny as a leading force in Namibia’s energy landscape. The pathway laid out in the FIA will be a catalyst for international investment, fostering the growth of the H₂ economy, and forging a mutually beneficial and lasting partnership between Namibia and Hyphen. Hyphen is more than just building a company; we are providing the basis for a just transition for Namibia and a blueprint for other countries in the global South”.

ENERTRAG is one of the largest renewable-energy companies in Germany. The company develops, builds, owns and operates utility-scale integrated energy plants that produce reliable electricity and green hydrogen exclusively from wind and sun. ENERTRAG produces 2 Terawatt-hours of electricity per year from 1 Gigawatt of own assets and has more than 10 Gigawatts of wind, solar and green-hydrogen projects under development in ten countries across the globe.

Hyphen Hydrogen Energy Ltd is a Namibian registered green hydrogen development company, specifically formed to develop green hydrogen projects in Namibia for international, regional and domestic supply.  Hyphen is a joint venture between Nicholas Holdings Limited and ENERTRAG SE.

The FIA is split in five broad sequential phases:

1. Preliminary phase: Lasting up to six months to allow for all conditions precedent to the FIA to be met and for GRN to exercise its option to acquire up to a 24% interest in the project.
2. Feasibility phase: A two-year feasibility period in which Hyphen is tasked with undertaking the assessment of the feasibility of developing the project.
3. Validation phase: The Namibian Government has 120 days following Hyphen’s submission of the Feasibility Report to consider and validate (if appropriate) the final project design.
4. Financing and construction phase: Hyphen will raise finance for the project and construct the project.
5. Operational phase: Hyphen will be responsible for the operation and maintenance of the Project, and for its eventual decommissioning at the end of the term.

 ENDS…