Hyphen Hydrogen Energy and The Government of the Republic of Namibia Launch Socio-Economic Development Framework for country’s first Gigawatt-scale Green Hydrogen Project

• SED Framework launched at official ceremony held in the ||Kharas regional capital of Keetmanshoop on Monday 24 July attended by GRN and Hyphen.
• GRN and Hyphen to begin 3-month national community engagement roadshow in August 2023.
• SED Framework highlights the specific benefits and opportunities that the project will bring to Namibia including but not limited to employment, procurement and skills development.
• Roadshow will engage with local communities to unpack the elements comprising the SED Framework and to communicate how Namibians can benefit from the project.

Namibia, 24 July 2023 –The Government of the Republic of Namibia (GRN) and Hyphen Hydrogen Energy (Hyphen) today launched the socio-economic development framework (SED Framework) for Namibia’s landmark US$10 billion green hydrogen project. The SED Framework is an integral part of the Feasibility and Implementation Agreement (FIA) which demonstrates GRN’s commitment to incorporating socio-economic development targets for green hydrogen developers in the implementation of Namibia’s green hydrogen strategy.

The SED Framework goes further than existing Namibian legal requirements and reflects Hyphen’s commitment to maximizing Namibian participation in the project. The SED Framework sets out the process to agree the project’s targets in respect of employment, local procurement, skills development and enterprise and supplier development—the combined breadth of which has not previously been part of infrastructure or natural resource agreements concluded by GRN.

Hyphen’s Head of Environment, Social and Governance (ESG), Toni Beukes, said: “In partnership with central, regional and local Government we aim to co-create solutions with local communities as we develop a road map for the delivery of a comprehensive socio-economic development strategy. It’s our ambition that this project and manner of setting socio-economic commitments for the project will set a new global benchmark for the sustainable and equitable development of large-scale green hydrogen projects that puts inclusive economics and robust environmental sustainability at its heart. We would like to extend our humble thanks and appreciation to Government as our partners in this project and look forward to getting to work.”

The pioneering FIA governs the process for the development, implementation and operation of Namibia’s first green hydrogen project. When completed it will be sub-Saharan Africa’s largest and only fully vertically integrated green hydrogen project.

Hyphen estimates that the project will create up to 15,000 new jobs during the construction phase and 3,000 permanent jobs during its operation on completion of both phases, with the target for 90% of these jobs to be filled by Namibians with 20% specifically targeted for youth. The project further estimates 30% local procurement of goods, services and/or materials during the construction and operational phases. The SED Framework includes a robust process by which Hyphen will validate these estimates through comprehensive baseline studies conducted during the feasibility phase, with GRN undertaking its own baseline studies in parallel. Hyphen will undertake various initiatives to drive effective stakeholder engagement throughout the development phase. Under a strict governance framework, GRN will agree the final contractual delivery obligations of Hyphen in respect of its socio-economic development commitments in the delivery of the project, including appropriate sanctions in the event of non-performance.

At the official launch ceremony held in the ||Kharas regional capital of Keetmanshoop on Monday 24 July GRN and Hyphen commented that the SED Framework serves to promote the socio-economic well-being of Namibia, creating jobs, empowering local communities, fostering economic growth and nurturing a sustainable future for all.

GRN and Hyphen will be embarking on a 3-month national community roadshow commencing in August 2023 aimed at actively engaging with local communities, businesses and individuals across the country, providing detailed insights into the SED Framework and explaining how the project is intended to work and the potential benefits it offers to Namibians.

Chairman of the Namibian Green Hydrogen Council and Director General of the National Planning Commission, Obeth Mbui Kandjoze, said: “Our chief mission as the GHC is to ensure that Namibia’s world-class renewable resources are deployed in an equitable manner that leads to the uplift of the Namibian people. The Framework announced today will ensure that GRN, Hyphen and the Namibian people all have a say in our shared future prosperity as we move forward to capture the benefits of the global decarbonisation effort.”

Presidential Economic Advisor Government of The Republic of Namibia, James Mnyupe, said: “The socio-economic growth and development that green hydrogen could bring to Namibia is monumental. The hydrogen projects will anchor the construction of thousands of houses, new roads, port facilities, electricity transmission lines, pipelines, desalination plants, hospitals, amongst many other necessary infrastructure, making use of existing Namibian skill sets and service providers. In addition to this, local SMEs stand to benefit from multibillion-dollar contracts that could provide opportunities to create generational wealth and sustainable businesses given that some of the green hydrogen projects being contemplated in Namibia are seeking to explore the unlimited renewable energy for multiple decades.”

Chief DC. Gertze, Chief of the Blouwes Traditional Authority and Chairperson of the Southern Traditional Community Foundation: “The message is clear this is a Namibian project that could bring many benefits to our people. As a community we now need to organise ourselves and ensure we are ready to take full advantage of this transformational project.”

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

 

 

-ENDS-

Notes to editors:

For more information on the FIA and SED Framework, please visit Hyphen’s website here: https://hyphenafrica.com/

A factsheet has been developed to outline the central components of the SED Framework and an indicative timeline for transitioning Hyphen and GRN’s aims into firm targets. Please see the Hyphen website.

 

For media enquiries please contact:

FTI Consulting: HyphenAfrica@fticonsulting.com

The Namibian Presidency: Alfredo.Hengari@op.gov.na/ James.Mnyupe@op.gov.na

About Hyphen

Hyphen is a Namibian registered green hydrogen development company which through a competitive tender process was awarded the rights to develop and implement Namibia’s first gigawatt scale green hydrogen project.  Hyphen is a joint venture between Nicholas Holdings Limited and ENERTRAG SE.

Hyphen’s project is being developed as the first step in the implementation of the Government’s strategy for the development of a large-scale green hydrogen industry in various regions in Namibia to support both economic growth in Namibia and assist the world in achieving its decarbonisation goals. At full scale development, the project will produce 2 million tonnes of green ammonia annually before the end of the decade for regional and global markets, from ~7GW of renewable generation capacity and ~3GW of electrolyser capacity, cutting 5-6 million tonnes (annually) of CO₂ emissions, with Namibia’s annual 2021 emissions totalling 4.01 million tonnes[1].

About ENERTRAG SE

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.

About Nicholas Holdings Limited

Nicholas Holdings Limited is a strategic investment and infrastructure project developer and operator with a 30-year track record of investment and project development in Africa and Europe, mainly through its subsidiary company, Principle Capital.

[1] https://ourworldindata.org/co2/country/namibia#what-are-the-country-s-annual-co2-emissions