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Hyphen participated in a competitive tender process in order to be appointed to implement Namibia’s first large scale green hydrogen project resulting in the signature of a concession agreement with GRN on 26 May 2023.
We’ve come a long way since Hyphen’s successful bid on the project in 2021 and the timeline below details all the key milestones and important moments in the development of the project.
Competitive tender timeline
A competitive and transparent tender and negotiating process concluded with the signature of the Concession Agreement with GRN on 26 May 26 2023.
- Process from conception to preferred bidder award
- Process from award to signature of Concession Agreement
- The Concession Agreement
- Progress from Concession Agreement to date
- From 2024 on
18 March 2021
The Harambee Prosperity Plan II was launched by H.E. The President of Namibia.
This set out ambitious targets to support the regional and global decarbonization with the Southern Corridor Development Initiative (SCDI) as part of the Economic Advancement Pillar.
23 May 2021
The Green Hydrogen Council (GHC) an inter-ministerial body to oversee the development of the green hydrogen opportunity, was established by H.E. The President of Namibia. The SCDI located within the Tsau ||Khaeb (Sperrgebiet) National Park was selected for Namibia’s first project.
23 June 2021
GRN launch a market sounding process that provided valuable inputs on what would attract developers and recommendations on how to structure the project so Namibia and its people are at the heart of the project.
3 August 2021
Launch of request for proposal (RFP) in respect of the first two land parcels in the SCDI. James Mnyupe was appointed Green Hydrogen Commissioner and the eight-member Green Hydrogen Council was established.
September 2021
GRN’s RFP process, which closed on 16 September, was open to all bidders with six individual bidders submitting nine separate bids across the two land parcels.
A GRN bid adjudication committee administered the adjudication process and was supported by two independent expert organisations: NREL (National Renewable Energy Laboratory), a national laboratory of the U.S. Department of Energy, and two technical experts appointed by the European Union Global Technical Assistance Facility on Sustainable Energy.
The subsequent findings and recommendations were presented to the GHC whose recommendations were presented to Cabinet for approval.
The Green Hydrogen Research Institute was established at the University of Namibia following Cabinet approval.
02 November 2021
GRN announced Hyphen as preferred bidder in respect of two land concessions in the Tsau ||Khaeb National Park and the process between GRN and Hyphen to prepare the Concession Agreement commenced.
Other participating companies: 6 bidders submitting 9 bids across the two land parcels: Sasol (x2), Fortescue (x2), Hyphen (x2), CRPG JV Broskies (x1), Tumoneni (x1), NeoGreen hydrogen (x1).
01 June 2022
GRN approved the composition and appointment of the Government Negotiations Team assembled to finalise the Concession Agreement.
November 2021
GRN and Hyphen begin negotiation of the Concession Agreement.
November 2021 – April 2022
GRN finalisation and appointment of external advisors and mandate of internal Government Negotiations Team (GNT), reporting to the GHC.
September 2022
GRN undertook a market sounding process on the proposed development, as part of the first project, of common use infrastructure to be utilised by subsequent projects in the SCDI as part of GRN’s plans to enable the rapid scalability of green hydrogen production in the SCDI.
September 2022 – May 2023
During this period Hyphen signed Memorandums of Understanding (MoUs) with a number of potential customers in Europe and Korea, targeting the supply of over 1 million tonnes of green ammonia annually.
April 2023
Ministry of Environment Forestry and Tourism approves the establishment of meteorological masts in the project area by Hyphen by the issue of issue of an Environmental Clearance Certificate to Hyphen in terms of Namibian legislation.
23 May 2023
Cabinet of GRN approves GRN’s entry into the Concession Agreement.
26 May 2023
GRN and Hyphen sign the Concession Agreement at Official Ceremony.
The GHC and GNT were supported in the development and negotiations of the Concession Agreement by a team of local and international advisors.
Legal: Clifford Chance, ESI-DLA Piper Africa, Dr Sakeus Adweenda, African Legal Support Facility (ALSF)
Strategy: McKinsey & Company
Financial: Cranmore Partners
Technical and Advisor: SYSTEMIQ and Hinicio
Project Management: Performance Delivery Unit, SYSTEMIQ
Roles / Responsibility 4
The project’s financial obligations to Government for the duration of the concession term (land rentals, environmental levies, royalties).
Roles / Responsibility 3
A framework covering common user infrastructure and socio-development undertakings and commitments.
Role / Responsibility 2
Hyphen is responsible for the technical, financial, environmental, social and commercial delivery of the project.
Role / Responsibility 1
GRN is responsible for ensuring that Namibia establishes the necessary legal, fiscal and regulatory environment to enable the implementation of the project.
22 December 2023
SDG Namibia One Fund, Namibia’s dedicated green hydrogen blended finance vehicle and the designated funding partner to Government of Namibia’s green hydrogen initiatives and Hyphen sign a share subscription agreement, following the closing of which, the Fund will take up a 24% stake in the project.
07 December 2023
Hyphen and the Development Bank of Southern Africa announce the signature of a €5 million Project Preparation funding facility.
05 December 2023
Hyphen recognised as a Low-Carbon Hydrogen Energy Transition Changemaker by the 2023 United Nations Climate Change Conference (COP28) Presidency in its Energy Transition Changemakers initiative.
24 October 2023
Hyphen and the Development Bank of Southern Africa (DBSA) announced plans to enter into a funding facility to be used to progress the development of Hyphen’s landmark green hydrogen project.
22 August 2023
The first National Green Hydrogen Roadshow, where Hyphen and GRN shared plans and spoke with local communities affected by the project, takes place in Khomas region.
08 August 2023
Hyphen signed an MoU with Japanese company ITOCHU to explore areas for potential collaboration between them to drive forward sub-Saharan Africa’s largest, and only, fully vertically integrated green hydrogen project.
July – October 2023
Specialist team appointed to conduct preliminary environmental critical path field surveys to identify key biodiversity risks and inform early project design.
20 June 2023
Hyphen announces MoU with GRN, Namibian Ports Authority (NamPort), NamPower, the Port of Rotterdam (PoR), Gasunie and Invest International, as GRN confirms equity stake in US$10 billion Green Hydrogen Project
June 2023
Hyphen and GRN launch Socio-economic Development Framework.
Mid 2024
Release draft environmental scoping report public for review and comment.
Q4 2025
Release draft environmental and social impact report for public review and comment.
Early 2026
Project Validation and Final Investment Decision
End of 2026
Start of Phase one construction.
End of 2028
Start of Phase two construction.
End of 2028
Completion of Phase one (targeting annual production of 1 MTPA).
End of 2030
Completion of Phase two (targeting annual production of 1 MTPA).
SDG Namibia One
The people of Namibia will be a shareholder in Hyphen, with the GRN having exercised its option to acquire a 24% interest in the project and successfully signing agreements in December 2023 to take up this 24% equity interest in the project.
The investment will be held through SDG Namibia One, a bespoke, blended, financing infrastructure fund, which initially will be wholly owned by the GRN on behalf of the Namibian people. GRN has raised €40 million from the Dutch government to fund its pro-rata share of the development costs of the project up to financial close (when construction can begin).
