Hyphen Hydrogen Energy Project Status Update

Proposed Hyphen Green Hydrogen production and supply project Namibia
In the Tsau//Khaeb National Park, near Lüderitz, Southern Namibia

We are pleased to share with you the second edition of Hyphen Hydrogen Energy (Pty) Ltd (Hyphen) project update. In this update, we outline the progress made since the last update in October 2023, including key events from our environmental, technical and socio-economic development (SED) workstreams. Your ongoing support and interest are invaluable as we advance the development of the project.

Background
In September 2021, Hyphen submitted its bid in a competitive tender process to develop the country’s first large-scale vertically integrated green hydrogen production and supply project in the Tsau //Khaeb National Park (TKNP), near Lüderitz in the //Kharas Region. The Government of the Republic of Namibia (GRN) awarded Hyphen preferred bidder status in November 2021.
On 26 May 2023, the GRN and Hyphen signed the Feasibility and Implementation Agreement (FIA), which governs the process for the development, implementation and operation of the project. Under the FIA, Hyphen is responsible for the technical, financial, environmental, social and commercial delivery of the Project, subject to all necessary permitting processes (including environmental) in accordance with Namibian law. The FIA also stipulates that the 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 a green hydrogen industry in Namibia.

Hyphen Office Expansion
Between October 2023 and June 2024, Hyphen has continued to rapidly expand our team both in Windhoek and in our newly established offices in Lüderitz. We now number over 25 full-time employees, including Chief Operating Officer Giuseppe Surace who joined the team in May 2024. The new recruits fill key roles across the business in human resources, finance, public relations, engineering, environmental and SED.

Environmental and Social Impact Assessment (ESIA) process
The ESIA is scheduled to formally commence in Q3 of 2024. We encourage all interested Namibians to be on the lookout for the launch of this process and to register for participation in this process. Active community and stakeholder engagement is critical to the ESIA and Hyphen welcomes such participation. All stakeholders who officially register for inclusion on the Project’s stakeholder database will be notified when the ESIA formally commences.

Collection of environmental baseline data within the TKNP
Hyphen continues, via its appointed environmental assessment practitioner SLR, to commission the targeted collection of key ecological baseline data within the TKNP, including vegetation, avifauna (birds), Hyperfauna (reptiles and amphibians) and mammals (including bats) as part of our planning process for the ESIA. An understanding of the sensitivity of the baseline environment is important to better understand the natural environment and help inform the design of the project in the least environmentally impactful way and for the identification of the potential impacts for assessment in the ESIA process. Baseline data collection and processing will continue throughout 2024.

Hyphen Project timeline

Completion of meteorological (met.) mast ESIA and met. mast installation.
In May 2023, Hyphen received approval by means of an Environmental Clearance Certificate from the Ministry of Environment, Forestry and Tourism (MEFT) to install 10 met. masts within the Project area. The met. masts will gather met. data over a 12- to 24-month period to help us better understand the potential of the renewable resources. Other important met. data includes ecological baseline data in relation to bats.

Met. mast installation commenced in August 2023 with the last mast fully commissioned in the first week of July 2024 (refer to Figure 1 for some of the met. masts pictures).

Figure 1: Shows some of the completed Met. Masts

Hyphen Meteorological Measurement Campaign Inauguration
In April 2024, Hyphen was honoured to host His Excellence Dr Nangolo Mbumba, President of the Republic of Namibia, during his four-day visit to the Hardap and //Kharas regions. President Mbumba officially inaugurated the commencement of Hyphen’s meteorological measurement campaign, participating in a ribbon cutting ceremony at one of the 10 newly installed meteorological masts. Additionally, President Mbumba took the time to explore the site where the future ammonia production and export facilities will be located, marking an important milestone in the Project’s progression.

President Mbumba said during his visit: “Namibia has made great strides to become the frontrunner in green hydrogen and ammonia production. The inauguration of Hyphen’s Met Masts signifies the next and essential phase to develop this Green Hydrogen project for and in Namibia.”

Figure 2: Inauguration of the commencement of Hyphen’s meteorological measurement campaign by His Excellency: Dr Nangolo Mbumba; The President of the Republic of Namibia.

Socio-Economic Development Updates

The National Green Hydrogen Roadshow
The National Green Hydrogen Roadshow is a joint initiative between the GRN and Hyphen that seeks to engage various stakeholders across Namibia to share information about the project and its SED Framework. The SED Framework describes how Namibians can benefit directly from the project through employment and local content opportunities.
To date, the roadshow has successfully reached the Khomas, Hardap, //Kharas, Omusati, Oshana, Kunene, Oshikoto, Ohangwena, and Otjozondjupa regions. The latest engagement took place in the Otjozondjupa region, where three town hall meetings were held in Grootfontein, Otjiwarongo and Okahandja, involving over 500 participants. The roadshow is scheduled to visit the Zambezi and Kavango East and West Regions next, with the expectation that all regions will be covered by the end of the year. For detailed roadshow data, please refer to the Table below.

Table 1: Roadshow Data

CLUSTER C: OMUSATI & OSHANA
11 April 2024	Outapi	Omusati Regional Council Main Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	140
12 April 2024	Oshakati	Leo Shoopala Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	105
CLUSTER D: KUNENE, OSHIKOTO & OHANGWENA
17 June 2024	Outjo	Omusati Regional Council Main Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	150
18 June 2024	Opuwo	Pwake Guest House Conference Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	60
19 June 2024	Omuthiya	Nantu Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	70
20 June 2024	Eenhana	Monte Carlo Guest House, Nhinda Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	65
CLUSTER E: OTJOZONDJUPA
10 July 2024	Grootfontein	Omulunga Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	67
11 July 2024	Otjiwarongo	Swanewelder Hall	Townhall meeting: OMAs, Business, Civil Societ and Youth	142
12 July 2024	Okahandja	Okahandja Town Hall	Townhall meeting: OMAs, Business, Civil Society and Youth	232

Figure 3: Roadshow Pictures

Additional Stakeholder Engagement
• Association of Local Authorities of Namibia conference in Lüderitz in March 2024 with over 50 local authorities represented
• Namibian State-Owned Enterprises’ CEOs Gala Dinner in June 2024
• Local Content Conference 16-18 April 2024 held in Luderitz
• Lüderitz Crayfish Festival held in May 2024
• Meeting with the Nama Traditional Leaders Authority in March 2024 in Keetmanshoop
• Periodic meetings with the Lüderitz Town Council and ǃNamiǂNûs Constituency Council
• Periodic engagements with the //Kharas and Hardap Governors and Regional Councilor Chairpersons
• Meeting with the Baster Traditional Leadership in Rehoboth in June 2024
• Meeting with the Hardap Regional Education Director in June 2024 etc.

Figure 4: Additional Stakeholder Engagement Pictures

Way Forward
Hyphen plans to release project updates at least quarterly to ensure stakeholders are aware of its activities.
In the meantime, we invite you to the Hyphen website for further information (https://hyphenafrica.com/). Please do not hesitate to contact the Hyphen team via the contact details provided on our website should you have any queries regarding our project.
We thank you for your interest.
Yours sincerely

Marco Raffinetti
Hyphen CEO