Southern Corridor Development Initiative (SCDI) Namibian Green Hydrogen Project
Hyphen successfully bid on and has been awarded preferred bidder status on ~4,000km2 of land within the Tsau //Khaeb National Park for the development of Namibia’s first fully vertically integrated GW scale green hydrogen project.
The project is being developed as the first step in the implementation of 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.
This US$10 billion project is planned to be developed in phases, at full development targeting 350,000 metric tons of green hydrogen production a year from ~7GW of renewable generation capacity and ~3GW electrolyser.
The project once fully developed will employ an estimate 3,000 people, with 15,000 construction jobs supported over the four-year construction period. Over 90% of these jobs are expected to be filled by local Namibians.
Renewable Energy Capacity
Phase 1: 3.5GW renewable and 1.5GW electrolyser
Phase 2: 3.5GW renewable and 1.5GW electrolyser
Phase 1: 175,000 tonnes per annum
Phase 2: 175,000 tonnes per annum
Phase 2: 1,000,000 tonnes of ammonia per annum
US$ 10 billion
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This US$10 billion project is roughly equivalent to Namibia’s GDP and will support the local economy through employment, local procurement and the industrial development of Namibia.
This is not a one-off project, Hyphen is proposing the development of common user infrastructure to facilitate the scale-up of hydrogen production by a factor of 10, for future projects in the Southern Corridor Development Initiative project area and Namibia has the potential to produce up to 15 million tonnes per annum of green hydrogen across the country.
The project will at full development target 350,000 metric tons of green hydrogen production a year, displacing 5-6 million tonnes per annum of CO2 emissions annually.
At full production scale and with additional projects coming online, the excess electricity produced by the hydrogen industry can be used to decarbonise the entire Namibian electrical grid, act as a catalyst for Namibia’s own energy independence; and make the country a net-exporter of low-carbon energy, assisting in the decarbonising of the southern African region.
Over 90% of these jobs are expected to be filled by local Namibians.
A government-led process
The Government is assuming the role of the custodian of the wealth to be generated for Namibia with the development of Namibia’s green hydrogen industry. The Government and/ or its newly created Welwitschia Fund sovereign wealth fund will take the roll of strategic equity partner in all green hydrogen projects in Namibia, targeting a 24% equity shareholding in Hyphen’s project, with no requirements for additional local equity shareholder participation.
Procurement process so far
The project was awarded preferred bidder status, following a rigorous government procurement request for proposal (“RfP”) process.
- The government’s RfP process was entirely open with six individual bidders/consortiums submitting nine separate bids across the two land parcels.
- A governmental 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 Green Hydrogen Council (GHC) which recommendations were presented to Cabinet.
Following the conclusion of the necessary contractual arrangements with government, Hyphen will complete all the necessary feasibility, engineering and permitting processes to enable construction to commence in January 2025, with commissioning of the first phase by the end of 2026.
You can find out more about this government-led process by visiting the Namibian Green Hydrogen Council website here.