The African Development Bank (AfDB) has approved a $10 million loan to Hyphen Hydrogen Energy, a leading green hydrogen developer in Namibia, to advance a green ammonia project valued at more than $10 billion. The financing aims to strengthen Namibia’s position as an emerging pioneer in the global green hydrogen economy.
The loan, provided through the Sustainable Energy Fund for Africa (SEFA), will support front-end engineering design studies for solar and wind generation, battery energy storage systems, electrolyser capacity, and desalination infrastructure. These preparatory studies will help de-risk the project and attract large-scale investment required for full-scale development.
SEFA is a multi-donor fund that offers catalytic capital to unlock private sector investment in renewable energy and energy efficiency. It focuses on addressing market barriers, supporting project preparation, and improving the risk-return profile of new clean energy ventures across Africa.
The Hyphen project will tap into Namibia’s strong solar and wind potential. Its first phase includes 3.75 gigawatts of renewable energy generation, battery storage, 1.5 gigawatts of electrolyser capacity, and key supporting infrastructure such as desalination facilities, pipelines, transmission corridors, and upgraded port facilities. All development will follow rigorous environmental and social standards.
Once operational, the project is expected to produce 2 million tons of green ammonia annually for export to global markets. It will also contribute significantly to Namibia’s economic development through a comprehensive socio economic plan integrated into the 40-year concession agreement with the government.
Environmental benefits are substantial. The project is expected to cut 5 million tons of carbon dioxide emissions annually, comparable to removing more than one million cars from the road. It will also deploy 7.5 gigawatts of renewable energy capacity, more than ten times Namibia’s current installed capacity. Additionally, it will supply three million liters of clean water daily through desalination to the water-scarce Lüderitz region in southern Namibia.
Moono Mupotola, AfDB Country Manager for Namibia and Deputy Director General for Southern Africa, said the project represents Africa’s growing leadership in the global energy transition, with the potential to create jobs, drive prosperity, and support environmental sustainability.
Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said the approval signals strong confidence in the company’s development plans and Namibia’s broader ambitions to build one of the world’s most transformative green hydrogen projects. He noted that the funding will support critical technical design work leading up to the final investment decision.
Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency, said SEFA’s intervention is catalytic and will help unlock billions of dollars in project financing.
The project is expected to create 15,000 construction jobs and 3,000 permanent roles, with 90 percent of positions reserved for Namibians and 20 percent targeted specifically at youth. It forms a core part of Namibia’s Southern Corridor Development Initiative and is expected to serve as a model for green hydrogen development across Africa.
Baburajan Kizhakedath