By: Nghiinomenwa-vali Hangala
Namibia’s landmark hydrogen project in the south has received another grant for de-risking the project and preparing it for a Financial Investment Decision.
The African Development Bank Group will provide reimbursable grants worth N$96.22 million to support Hyphen’s green hydrogen/derivatives projects in Namibia.
This is part of its overall grant to four African countries developing green hydrogen/derivatives projects: Egypt, Morocco, Namibia and South Africa.
Hyphen confirmed this week that it has been selected as a prospective beneficiary of a US$5.93 million reimbursable grant under the Sustainable Energy Fund for Africa (SEFA) Africa Green Hydrogen Programme.
The financing will be extended under the Africa Green Hydrogen Programme’s call for Proposals (CfP), which took place from 10 April 2026 through 11 May 2026.
The Africa Green Hydrogen Programme’s call for proposals attracted 81 proposals for projects located in 18 African countries.
The continental bank explained in the statement that the Sustainable Energy Fund for Africa will “provide the funding, which is intended to prepare projects for investment.”
Commenting on the announcement, Bank Group Director for Renewable Energy and Energy Efficiency, Daniel Schroth, said, “Africa’s exceptional renewable energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market.”
Through the SEFA-funded AGHP, the African Development Bank is helping to move high-potential projects closer to investment readiness, he added.
This additional grant selection extends the relationship between AfDB and Hyphen, building on the previously announced US$10 million reimbursable grant announced on December 9th, 2025.
“The grant will contribute towards the development of the project up to the Final Investment Decision (FID),” the AfDB wrote.
Marco Raffinetti, the chief executive officer of Hyphen Hydrogen Energy, said the AfDB’s second grant and selection is an expression of confidence in the project.
“This selection is a major endorsement of our project’s quality, rigor, and advanced maturity,” stated Raffinetti.
He explained that strategic backing from African and international lending institutions is vital as the company advances through the crucial project preparation phase toward FID.
Assuring that “together with our partners and the government of Namibia, we remain focused on delivering a world-class green hydrogen hub that drives local socio-economic growth, creates jobs, and positions Namibia as a global leader in the energy transition.”
The southern hydrogen project has a 7 GW of renewable generation capacity and 3 GW of electrolyzer capacity.
The Hyphen project targets producing two million tonnes of green ammonia annually for regional and global markets, including sustainable fuels for shipping and aviation.
The FID for the first phase of one million tonnes per annum is targeted by the end of 2027.
Hyphen’s project is positioned to deliver various socio-economic impacts for Namibia.
The construction phase is projected to create up to 15,000 new jobs, plus potentially 3,000 permanent operational jobs upon completion of both phases.
Furthermore, the project is expected to contribute to global decarbonisation efforts, cutting 5 to 6 million tonnes of emissions annually, exceeding Namibia’s total national carbon footprint.
The four green hydrogen and derivative projects that received grants from the AfDB represent estimated investments of US$23 billion, as well as 20GW equivalent of solar and wind energy generation capacity.
Additionally, it includes 7 GW of electrolyser capacity and 2950 MWh of battery energy storage capacity.
According to the AfDB, the Africa Green Hydrogen Programme aims to catalyse private sector participation in the hydrogen infrastructure segment by improving bankability and promoting foreign direct investment.
The AfDB added that the continent can leverage green hydrogen and its derivatives for storage of solar and wind power and is expected to accelerate renewable energy development by eliminating the need for fossil fuels and reducing carbon emissions.
erastus@thevillager.com.na
