AfDB Approves $10M Loan for Namibia’s $10B Green Hydrogen & Ammonia Project

Namibia has some of the world’s highest solar irradiation and strong coastal wind resources, positioning it as a potential continental leader in clean hydrogen production.

The African Development Bank (AfDB) has approved a $10 million loan to Hyphen Hydrogen Energy, marking a major milestone in Namibia’s efforts to become a global pioneer in the green hydrogen and green ammonia economy. The financing, sourced from the Bank’s Sustainable Energy Fund for Africa (SEFA), supports a $10+ billion flagship project that could redefine Africa’s role in the global energy transition.

The funding will enable Hyphen to undertake front-end engineering and design (FEED) studies for essential infrastructure, including solar and wind farms, battery storage, electrolysers, and desalination systems—critical steps to de-risk the project and attract billions in private capital.

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A Transformative Project Leveraging Namibia’s World-Class Renewables

Namibia has some of the world’s highest solar irradiation and strong coastal wind resources, positioning it as a potential continental leader in clean hydrogen production.

Phase One of the Hyphen project includes:

• 3.75 GW of renewable energy generation (solar + wind)

• Large-scale battery storage systems

• 1.5 GW of electrolyser capacity

• New desalination facilities and pipelines

• Transmission infrastructure

• Port upgrades in Lüderitz

All components will adhere to high environmental and social standards, ensuring sustainability throughout the 40-year concession.

When fully operational, the project is expected to produce 2 million tons of green ammonia annually, mainly for export to international markets, contributing to global decarbonization needs while boosting Namibia’s industrialization agenda.

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Massive Environmental and Economic Impact

The Hyphen project is expected to deliver both climate benefits and local development gains:

Environmental Impact

• 5 million tons of CO₂ emissions avoided annually, equal to removing over 1 million cars from the road

• Deployment of 7.5 GW of renewable energy—10 times Namibia’s current installed capacity

• Production of 3 million liters of clean water per day for the water-scarce Lüderitz region

Economic & Social Impact

• 15,000 construction jobs and 3,000 permanent jobs

• 90% of jobs reserved for Namibian nationals

• 20% of all positions dedicated to youth, addressing a youth unemployment rate above 38%

• Integration of local suppliers, training programs, and community development initiatives

The project serves as the flagship of Namibia’s Southern Corridor Development Initiative, a national strategy to attract investment and build a green industrial economy.

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Leaders Celebrate a Landmark Moment for Africa’s Energy Transition

Moono Mupotola, AfDB Country Manager for Namibia, emphasized the project’s broader significance:

“This is far more than energy infrastructure. It demonstrates Africa’s capacity to lead the global energy transition, create quality jobs, and build prosperity while protecting the planet.”

Hyphen CEO Marco Raffinetti welcomed the Bank’s support:

“This approval represents a strong vote of confidence in Hyphen’s project and Namibia’s ambitions. SEFA funding will support our technical design phase as we move toward final investment decision.”

Daniel Schroth, AfDB Director for Renewable Energy and Energy Efficiency, highlighted SEFA’s role:

“SEFA’s intervention is catalytic. By supporting pre-investment activities, we are unlocking billions in financing. This is a strategic, high-impact development project.”

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A Flagship for Africa’s Green Hydrogen Future

The Hyphen project is expected to have a demonstration effect across Africa, especially for countries with abundant renewable energy resources such as Morocco, South Africa, Kenya, and Mauritania. By proving that large-scale green hydrogen production is viable on the continent, Namibia is positioning itself as a trailblazer in clean energy innovation.

As countries search for carbon-neutral fuels, Namibia’s bold investment—supported by AfDB and SEFA—signals that Africa is not merely participating in the global green economy; it is helping shape its future.