The Namibian Government and its preferred green hydrogen bidder, Hyphen Hydrogen Energy on Friday signed the Feasibility and Implementation Agreement (FIA) to kick-start the green hydrogen project in the Tsau ?Khaeb National Park in the ||Kharas Region.
Speaking at the signing ceremony at State House, National Planning Commission Director General, Obeth Kandjoze said the N.dollars 10 billion agreement marks the beginning of Namibia’s plans to become the clean energy of hub of Africa and Government’s recognition of the urgency to deliver tangible improvements in the lives of all citizens.
He said the project will create up to 15 000 jobs including 3 000 permanent employment during its operation of which 90 per cent will be sourced locally, mostly youth, adding the project will source up to 30 per cent of its procurement of goods, services and materials during the construction and operational phases from local SMEs and business.
Kandjoze emphasised that the project will generate significant income to the Namibian fiscus through the payment of land rentals, royalties on all project revenues and taxes, noting the government also has an opportunity to be a co-investor in the project with the right to take up to a 24 per cent equity interest at cost.
“Green hydrogen plays a crucial role in the global decarbonisation effort because of its versatility and unique ability to connect power, gas, chemicals and fuel markets, especially in hard-to-abate sectors. Namibia is investigating the feasibility of green hydrogen and ammonia as a transformative strategic industry to respond to the global cry,” he said.
Kandjoze noted Hyphen Hydrogen Energy is responsible for the technical, financial, environmental, social and commercial delivery of the first project, whist the government is responsible for the provision of land on which the project will be established, and providing development and implementing of the required legal, fiscal and regulatory environment necessary for the establishment and sustainable operation of Namibia’s green hydrogen industry.
Kandjoze also noted that Hyphen Hydrogen Energy was selected from nine dynamic proposals received from six different international developers.
At the same event, Hyphen Hydrogen Energy Chief Executive Officer, Marco Raffinetti said the Namibian green hydrogen project represents a global benchmark of economic and sustainable development as the world gears towards achieving decarbonisation.
“We feel the weight of the expectation of the country and working hand in hand with the government to deliver upon the ambitions set out in the Harambee Prosperity Plan. The project truly has the opportunity to transform Namibia’s economy,” Raffinetti noted.
Source: The Namibian Press Agency