The African Development Bank (AfDB) Board of Directors has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian green hydrogen developer, to advance a green ammonia project estimated at more than $10 billion.
According to a statement issued by the APO Group on Wednesday, the funding aims to position Namibia as a frontrunner in the global green hydrogen industry.
The loan, sourced from the Sustainable Energy Fund for Africa (SEFA), will finance front-end engineering design studies covering solar and wind power generation, battery energy storage systems, electrolyser capacity, and desalination infrastructure. This early-stage support is intended to de-risk the project and attract the substantial investment required for full implementation.
SEFA, a multi-donor special fund, provides catalytic financing to unlock private-sector participation in renewable energy and energy efficiency. The fund offers technical assistance and concessional financing to eliminate market barriers, strengthen the renewable project pipeline, and enhance the risk-return profile of major investments.
The project will capitalize on Namibia’s exceptional solar and wind resources, with its first phase delivering 3.75 GW of renewable energy, extensive battery storage, 1.5 GW of electrolyser capacity, and complementary infrastructure, including desalination plants, pipelines, transmission networks, and upgraded port facilities—all developed under rigorous environmental and social standards.
Once operational, the facility is expected to produce 2 million tonnes of green ammonia annually for export to global markets. It will also support local development through a socio-economic plan embedded in the project’s 40-year concession agreement.
The project is anticipated to avert 5 million tonnes of CO₂ emissions each year—the equivalent of removing over one million cars from the road—and deploy 7.5 GW of renewable energy, exceeding Namibia’s current installed capacity by more than tenfold.
Additionally, it will supply 3 million liters of desalinated water daily to the water-scarce town of Lüderitz in southern Namibia.
Moono Mupotola, AfDB Country Manager for Namibia and Deputy Director General for Southern Africa, emphasized the broader significance of the project:
“This is about far more than energy infrastructure. It is about proving Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while safeguarding the planet.”
Hyphen CEO Marco Raffinetti described AfDB’s approval as a strong endorsement of both the company’s efforts and Namibia’s ambitions:
“We deeply appreciate the Bank’s support. This facility will help fund the technical design phase as we move toward a final investment decision.”
Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency, called SEFA’s role “catalytic,” noting that its involvement will unlock billions in additional financing.
The project is expected to create 15,000 construction jobs and 3,000 permanent roles—90% of them reserved for Namibians, with at least 20% targeted at youth in a country where youth unemployment exceeds 38%.
Seen as a flagship initiative under Namibia’s Southern Corridor Development Initiative, the Hyphen project is expected to serve as a model for other African nations endowed with abundant renewable energy resources.
