Significant Milestones on Green Hydrogen Achieved

National Synthetic Fuels Strategy (the Strategy) which was launched at home and at COP27 in Egypt. The Government will look to fund further feasibility studies with the remainder of the money, with the aim of developing the three identified green hydrogen valleys in the Strategy.

Several significant milestones have been achieved through the successful implementation of ongoing long-term activities. One notable accomplishment is the development of an implementation plan aimed at attracting private sector investment into Namibia’s green and blue economies. This initiative made substantial progress with the government announcing a preferred bidder to carry out a feasibility study on Green Hydrogen in the Tsau //Khaeb National Park. Final negotiations are underway with the preferred bidder and the feasibility is expected to commence in the 2nd half of 2023.

Since the launch of HPPII, the Government, through Economic Diplomacy channels, secured more than N$700 million of grant funding from the German Government, specifically the German Ministry of Education and Research. This money was provided to Namibia to realize its ambitions of developing a local industry and preparing Namibian businesses and scholars to enter and develop this industry at home.

This funding was divided into three separate programs. Approximately N$88 million was allocated to fund a national synthetic fuels strategy and associated studies. Some of this funding was used to develop the recently launched

Approximately N$88 million was set aside to develop a scholarship program, which was advertised nationally. This first round unearthed 1,600 applications and resulted in 60 Namibian students being identified to receive scholarships to study in Namibia and or in Germany in programs that are related to the clean hydrogen industry. We aspire to assist the students to get placed in various institutions of higher learning this year.

Third, we developed a pilot project program which looked for Namibian and German businesses that wanted to set up local green hydrogen related businesses and for tertiary institutions that wanted to run relevant research projects. 23 applications were received, and 4 projects were shortlisted as potential beneficiaries of the more than N$500 million that has been earmarked for this part of the program.

The green hydrogen initiative was purposely broadened to a National Synthetic Fuels Strategy because the Government appreciates that Hydrogen is a mere building block for many a range of products including, ammonia, methane and jet-fuel for example. Some of these components can then be used to produce further goods such as fertilizers, explosives and even pig iron.

Furthermore, the process to produce green hydrogen will result in a lot of clean electricity being produced and some excess may be available for local or regional consumption. Clean and affordable electricity should enable our electricity industry, which abides by the principles of a cost reflective tariff, to gradually lower the cost of energy for the average Namibian household and industrial consumer as well. This could contribute very positively to Namibia’s global competitiveness and augment its ability to attract energy intensive industries.

When one starts to consider all of the above opportunities and the potential impact to drive growth and investments into adjacent sectors such as construction, research and development, mining etc. one begins to appreciate the potential magnitude of what a ‘green economy’ in Namibia could be. It is essentially an initiative that speaks to the ambitions of our Vision 2030 and will provide a critical pathway for Namibia’s economy to evolve from one which is dominated by the primary sector, into one which derives significant value from the secondary sector. Along the way as Namibian’s we gain critical skills and professionals from around the world flock to our country, a sizeable tertiary sector is expected to develop.

This is what the Government is envisioning under HPPII’s Economic Advancement Pillar under Goal number 3.