Namibia backs four projects in green industrial push

Green push
N$932m climate funding bolsters Namibia's green industrial pipeline
Augetto Graig
  • 1 Hour Ago

Namibia is advancing a pipeline of green industrial projects spanning hydrogen, iron, ammonia and fertiliser production, as a new round of climate financing strengthens efforts to develop local industries.


Mercia Geises, chief executive of Namibia Energy Transition Fund Managers and SDG Namibia One, has outlined four projects receiving development funding from the investment vehicle, following the Green Climate Fund's (GCF) approval of US$56 million (approximately N$932 million) for SDG Namibia One.


The allocation comprises US$15 million (approximately N$250 million) for its Development Tranche and US$41 million (approximately N$682 million) for its Construction Equity Tranche.


The two funding windows serve different purposes in the project development cycle. The Development Tranche finances early-stage project development, while the Construction Equity Tranche provides equity capital to help projects progress through construction and into operation.


“Following the GCF’s approval, we expect the necessary legal and contracting processes to take approximately six months, after which the financing can be made available for investment in eligible projects, subject to the applicable requirements. In the meantime, SDG Namibia One has existing Development Tranche funding available for investment in eligible projects. The GCF financing will provide the first capital for the Fund’s Construction Equity Tranche,” Geises said.


The financing will be provided under the Southern African Industrial Decarbonisation Facility (SIDF), with the Development Bank of Southern Africa (DBSA) serving as the GCF's Accredited Entity. The DBSA will be responsible for programme oversight, monitoring and reporting.


Namibia's largest proposed green hydrogen development, Hyphen Hydrogen Energy, has already received development funding from SDG Namibia One's Development Tranche to support its project development activities.


Geises said Hyphen could also be considered for investment from the Construction Equity Tranche, provided it reaches a final investment decision (FID) and meets the fund's investment requirements.


Beyond Hyphen, SDG Namibia One has provided development funding to three other projects, bringing the total number of supported Namibian projects to four.


According to Geises, the funding is supporting their progression through the development, permitting, regulatory approval and investment processes towards a potential FID.


The projects span several parts of the emerging green industrial value chain, from hydrogen-based iron production and green ammonia to low-carbon fertiliser manufacturing.


The four projects are:


1. Hyphen Hydrogen Energy | ǁKaras Region


Hyphen is a large-scale green hydrogen project located within Namibia's Tsau ǁKhaeb National Park.


SDG Namibia One has subscribed for a 24% stake in Hyphen Hydrogen Energy and provided development funding to support the project's advancement.


The development is expected to create up to 15,000 jobs during construction and 3,000 permanent positions once operational, with a target of 90% of these jobs going to Namibians.


2. HyIron's Oshivela Project | Erongo Region


HyIron's Oshivela project is an industrial-scale green iron development that uses green hydrogen instead of fossil fuels to produce direct reduced iron (DRI).


Phase One was commissioned in April 2025, with an annual production capacity of 15,000 tonnes of green iron and estimated emissions avoidance of approximately 27,000 tonnes of carbon dioxide (CO₂) a year.


Phases Two and Three aim to expand production capacity to 2 million tonnes annually. The expanded development is expected to create approximately 6,000 construction jobs and 900 permanent positions.


3. Zhero Molecules Walvis Bay | Erongo Region


Zhero Molecules is developing an industrial-scale green ammonia project near Walvis Bay on Namibia's central coast.


Once operational, the project is expected to produce 500,000 tonnes of green ammonia annually and avoid approximately 1.2 million tonnes of CO₂ emissions each year.


Construction is expected to generate approximately 6,000 jobs, with a further 500 permanent positions anticipated during operations.


4. Dâures Green Fertiliser Project | Erongo Region


The Dâures Green Fertiliser Project is a green hydrogen and low-carbon fertiliser development in the Dâures Constituency, approximately 50km inland from Namibia's Atlantic coast.


Once operational, the project aims to produce up to 20,000 tonnes of green ammonia and 80,000 tonnes of ammonium sulphate fertiliser annually for Namibian and regional markets.


The development is expected to avoid approximately 48,000 tonnes of carbon dioxide equivalent emissions each year and create up to 115 permanent jobs.