From pipe dream to reality

…Namibia’s green hydrogen industry shapes up with N$3.5 billion in investment

STAFF WRITER

Green hydrogen, a concept that was a mere dream four years ago, has now evolved into one of Namibia’s major economic enablers, promising to create jobs, boost industrialisation and create an alternative power supply.

However, this has not come without criticism, with many still believing the green hydrogen industry is still alien to average Namibians.

Namibia Green Hydrogen programme head James Mnyupe says the industry has transitioned from being just a dream into a sector with potential to create jobs and transform Namibia into a major player in industrial production.

Speaking to Namibia Business Review recently, Mnyupe said what used to be a mere concept is morphing into a real game changer in the production of gases, ammonium fertiliser, agricultural production, and the creation of a synthetic energy hub, as well as other spin-off industries that could see Namibia competing for space in the industrialised world.

His sentiments are supported by the recently released National Development Plan 6 (NDP), which confirmed that the Namibian green hydrogen industry has attracted N$3.5 billion worth of investment promises between 2021 and 2025.

The NDP also notes that about N$1.6 billion has already been invested in various projects. At the same time, green industries experienced rapid growth, with several transformative projects underway, and employment and skills development initiatives are being implemented.

According to the NDP6 policy document, the period between 2021 and 2025 marked significant progress in laying the foundation for Namibiaʼs green hydrogen sector, both from a policy perspective and through the initiation of key projects. 

“The dream that was green hydrogen from four years ago is now a fully blown young star in terms of the investments that have been put on the ground, the offtake contracts that have been signed. The truth is that the demand for green hydrogen has increased. What we are seeing is that most countries are mobilising concessionary capital to go deeper into the industry. I am glad to say Namibia is one of those countries,” Mnyupe says.

He says the country’s push for a synthetic energy hub has been well received by the market, with many offtakers expressing interest in dealing with Namibia.

Myupe said some of the off-takers are already proactively reaching out to formulate deals that will come through once most projects start production.

“I am glad to say our industry is backed by players who are natural off-takers in terms of actually buying their own products. That is because the offtake is being driven by policy. I am thinking of the shipping industry here, which is driven by the International Maritime Organisation, which supports the usage of clean fuels. These are the deep insights we are unearthing here at the green hydrogen and feeding that to our government,” Mnyupe said. 

Some of the key projects that have taken off include the Daures Green Hydrogen Project, Cleanergy Solutions Namibia Project, Hyphen Hydrogen Energy Project, Envision-Zhero Ammonia Plant, Hydrogen De France (HDF) Project and HyIron Oshivela Project.

He said the green hydrogen industry has the potential to create jobs for Namibians, who are being trained across the globe to become fully skilled in the craft.

While Mnyupe remains optimistic that Namibia has coined a huge opportunity that will grow the economy, others are still sceptical about the number of jobs the industry can create.

One such critic is  Frederico Links, a researcher at the Institute for Public Policy, who has voiced concern that the number of potential jobs the industry can create is changing by the day.

Speaking at the launch of the third Green Hydrogen Monitor recently, Links said there is a need for more data on the number of expected jobs.

“In our last monitor, we discussed the same issue. The number then was around 60 000 jobs. This, however, continues to change, and that makes the green hydrogen monitor as a publication very important for the future,” Links said.

Mnyupe, however, said the changes in the numbers is a normal phenomenon for an industry that is still growing and finding interest.

“I am encouraged by the staff here at the green hydrogen programme. We are happy that it is not just green hydrogen for the sake of green hydrogen but green hydrogen for a whole industry, which will work as an underpinning for our country and employment creation,” he said.

SCHOLARSHIPS

According to Mnyupe, many young Namibians are starting to show interest in harnessing the opportunities the industry presents.

Mnyupe said Namibia Green Hydrogen is working with the government to ensure that as many Namibians as possible benefit from a related scholarship programme managed under the Office of the Vice President, Lucia Witbooi.

“Since we started, we have processed about 183 scholarships. I am so proud that not only have they come back, but they have returned with their own ideas and own ambitions. Some, on their return, have started their own schools with foreign direct investment secured worldwide. Others have secured jobs at companies like Daures Green Hydrogen village,” he said. 

NOT SO NEW

According to Mnyupe, the green hydrogen industry is not a new sector to Namibia, as it has been operating, albeit on a smaller scale.

He said concerns about the regulation of the industry are already catered for by the existing legislative framework guiding the industries that are in the broader green hydrogen industry.

“It is also important to note that the green hydrogen industry is not so new in Namibia. There are companies like Afrox that have already been in operation in the country. So, what we are doing right now is just lifting the industry. What we must do is learn from those who have been in the business so that we are not just consumers of gases made from South Africa, but produce them ourselves,” he said.

Mnyupe further added that when someone raises concerns regarding, for instance, the regulation of the transportation of explosives or gas, it is essential to note that we have been dealing with some of these matters and addressing them. The industry operates within existing sectors, such as the water and electricity sectors, which are already regulated. All that is needed is to reinforce and refine the existing regulatory frameworks.

JOB CREATION 

According to the NDP 6, approximately 800 direct jobs have already been created, with over 30 000 direct, indirect and induced jobs projected to be created across the value chain by 2030 from the green hydrogen industry.

“The NDP 6 document also says Namibiaʼs abundant renewable energy resources have positioned it as a frontrunner in the global green hydrogen economy. 

“Leveraging its world-class solar and wind capacity, Namibiaʼs green hydrogen sector has the potential to power sustainable industrialisation, foster job creation, and secure its role as a competitive exporter of green energy and derivatives. Green hydrogen provides a balanced pathway for economic diversification, infrastructure development, and the realisation of Namibiaʼs long-term development goals, ensuring a just and inclusive transition for all citizens,” the policy noted in part.