On 26 May 2023, the Republic of Namibia and Hyphen Hydrogen Energy (Hyphen) signed a Feasibility and Implementation Agreement for the development, implementation and operation of sub-Saharan Africa’s largest and fully vertically integrated, green hydrogen project.
The African Legal Support Facility (the “ALSF” of “Facility”) is pleased to have supported the Government of Namibia (the “GRN”) for the negotiation of a Feasibility and Implementation Agreement which will govern a total project capital investment of US$10 billion in the country’s nascent renewable hydrogen sector. The FIA is expected to set a global benchmark for the sustainable development of large-scale green hydrogen projects as the world looks to decarbonise its energy systems in a manner that is fair, just, economically inclusive and environmentally sustainable.
The ALSF assistance to the GRN included legal, technical and financial advice with extensive support from Clifford Chance LLP and Ellis Shilengudwa Incorporated who lead the legal negotiations of the FIA. The ALSF also collaborated with the Global Infrastructure Facility to provide a comprehensive and cohesive advisory solution the GRN and its inter-ministerial negotiation team.
At full scale development, the project will produce over 2 million tons of green ammonia annually for regional and global markets. The partnership between GRN and Hyphen represents the first step in Namibia’s journey to unlocking its potential of becoming one of the world’s leading green hydrogen production hubs, by leveraging Namibia’s world leading co-located wind and solar resource, vast open spaces and stable investment climate underpinned by strong democratic values.
Central to the FIA is a dedication to driving the socio-economic development of Namibia, through job creation and local procurement. During the construction phase, it is estimated that the project will create around 15,000 new job opportunities and 3,000 permanent positions during the operational phase. Hyphen is striving for 90% of these jobs filled by Namibian talents, with a specific focus on the youth (18 – 35) of 20%. The project is targeting 30% local procurement for goods, services and materials throughout both the construction and operational phases.
Namibia’s first green hydrogen project is a first step in the implementation of the country's broader green hydrogen strategy towards a greener, more resilient future for generations to come. GRN will be providing the land to be leased by Hyphen and will be establishing the legal, fiscal and regulatory environment necessary for the establishment and sustainable operation of Namibia’s green hydrogen industry. Hyphen is responsible for the technical, financial, environmental, social and commercial delivery of the project.
About the ALSF
Established by the African Development Bank in 2008, the ALSF assists African governments in negotiating complex commercial transactions, providing legal and technical assistance, and developing capacity building tools in the key sectors of infrastructure and public-private partnerships, energy, natural resources and extractive industries, as well as on sovereign debt and creditor disputes.
Eve Ehoura, Communication Officer: email@example.com
ALSF Website: https://www.alsf.int