Namibia's Ambitious Green Hydrogen Export Plans and Foreign Investments
Key Ideas
- Namibia is exploring exporting all produced green hydrogen due to the lack of a domestic market, but aims to allocate some for future domestic use.
- The country is considering exporting green hydrogen to South Africa via a pipeline, deemed more cost-effective than using shipping methods to other continents.
- Significant upfront investment is required for building infrastructure and workforce training for hydrogen transport via pipelines across borders.
- Namibia has received a total pledge of N$1.7 billion from European government-related companies for green hydrogen projects, with Invest International from The Netherlands pledging the highest amount.
Namibia's green hydrogen project is gaining global attention despite the absence of a domestic market for renewable hydrogen. A report by the International Energy Agency highlights the country's focus on exporting all produced hydrogen. While efforts are being made to reserve a portion for future domestic use, the current plan necessitates exporting all production. The report indicates that South Africa is a viable export destination for green hydrogen via pipelines, offering a cost-effective solution compared to shipping to other continents. However, the development of hydrogen pipelines demands a substantial initial investment in infrastructure and training. Namibia has invested N$380 million in consultancy services and feasibility studies for green hydrogen projects, including the Hyphen Hydrogen Energy project and others. The country has secured pledges totaling N$1.7 billion from European entities, with significant contributions from Invest International, Germany, and the European Union. This financial support underscores international interest in Namibia's green hydrogen initiatives, positioning the country for economic growth and sustainable energy development.
Topics
Africa
Renewable Energy
Economic Development
Infrastructure Development
Foreign Investment
Government Funding
Export
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