By: Nghiinomenwa Erastus
There has been so much theoretical hype about green hydrogen led by HPPII and various governmental; however, many people were sceptical of its economic practicality due to limited information.
The joint venture between O&L Group and CMB.TECH Cleanergy Namibia will develop green hydrogen (H2) production plant and demonstration hub, its first development in Namibia and the continent.
The two announced the venture and the project last week of last month in Windhoek.
The team explained that the planned demonstration plant would allow Namibia first to test the technology under Namibian conditions and assess the feasibility of scaling up the plant in the future.
According to the venture press release, the plant, a demonstration hub for hydrogen applications, will be built in the Erongo region.
The construction will start this year to be operational by the end of 2023, and will require about US$18 million (N$276,5 million), the venture revealed.
Depending on the results of the demonstration plant, a larger scale production plant will follow in a second phase, possibly using ammonia as a transport fuel.
Cleanergy Namibia, the outcome of the joint venture, will be exploring green hydrogen generation through the country’s first green hydrogen demonstration plant.
The venture explained that the aim is to produce green hydrogen from solar power and distribute the clean fuel to heavy-duty applications like trucks, locomotives, mining equipment, and ships.
The green hydrogen demonstration hub will consist of a 5MW solar park, a 4MW electrolyzer, and an H2 refuelling station.
The hydrogen produced with the demonstration plant will go towards local use and the development of local applications.
The venture explained in the presentation will be delivered to trucks, mining equipment, locomotives, port equipment, and ships (e.g. tugboats).
Literature has, however, shown that the production of these green molecules needs to be developed in places where renewable energy can be produced cheaply.
According to assessments done, Namibia is one of the best locations in the world to produce solar energy at the lowest cost (up to 2400kWh/m² every year)
According to the United Nations’ global roadmap, the executive chairman of the O&L Group, Sven Thieme, explained that the world is in a race to limit global warming and reach net-zero emissions by 2050.
One of the critical shifts required to ensure a sustainable future includes transitioning to clean energy solutions.
He, however, noted that while the move away from fossil fuels may take several paths, green hydrogen shows tremendous potential in getting us there.
After the HPPII, Namibia has gained global recognition with its big ambition to initiate green hydrogen at a larger scale.
Thieme has also indicated that Namibia is a growing hub for the generation of renewable energy,e through solar, wind, or hydroelectric power.
“This is what makes our country optimally positioned to explore the generation of green hydrogen or hydrogen, which is generated using renewable energy,” he said.
Thieme added that Namibia’s capacity to generate solar power, in particular, highlights its potential to be at the forefront of green hydrogen development and progress towards greater energy independence.
However, he added that it would require efforts of a certain scale, a shared vision, dedication, and expertise, which is why O&L Group went into a joint venture with the Belgium-based CMB.TECH.
“We are willing to invest in this trial phase because we are committed to setting green hydrogen production in motion in Namibia,” said Thiem.
He also indicated that O&L Nexentury and Germany’s KFW/DEG have been conducting a feasibility study on green hydrogen in Namibia for the last 12 months, which will be finalized in April 2022, and its findings are used to inform future decisions on the demonstration plant.
The demonstration plant could be the first step in creating an entirely new industry in Namibia.
In addition, it will enable knowledge transfer into the country, upskilling opportunities and creating employment, driving further research, including in collaboration with the University of Namibia.
Moreover, developing future offtake opportunities in transportation, mining, heavy machinery, and power generation.
The chief executive officer CMB.TECH, Alexander Saverys also indicated that Namibia has the potential to produce green molecules (such as hydrogen and ammonia) on a large scale and at a low cost.
Green and affordable molecules are an essential part of the energy transition.
“We hope to demonstrate that words can be turned into actions when it comes to green hydrogen projects,” he said
Cleanergy Namibia’s ambitions go beyond the initial production and demonstration plant.
The team added that building on the expertise acquired during the construction of the hydrogen plant, Cleanergy will simultaneously develop a much larger green hydrogen and ammonia factory in Namibia.
By starting the hydrogen production plant in 2022, Cleanergy Namibia wants to demonstrate that green hydrogen projects are already a reality today.
CMB.TECH is a subsidiary of Compagnie Maritime Belge (CMB), a significant player in decarbonizing the shipping industry by producing and sourcing hydrogen and ammonia to fuel the marine and industrial applications that it builds and operates. Email: erastus@thevillager.com.na
