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Namibian, German Governments Sign Joint Declaration To Accelerate Green Hydrogen Development

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Namibia and Germany have signed a joint declaration of intent that aims to accelerate research, development, and production of green hydrogen. German investors are already positioning themselves in the fast-growing green hydrogen market in Namibia.

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The joint declaration of intent was signed by Robert Habeck, the German Vice-Chancellor and Minister for Economic Affairs and Climate Action, and Thomas Kavaningilamo Alweendo, the Namibian Minister for Mines and Energy. The deal justifies the current diplomatic offensive of Germany to develop the growing global market for green hydrogen.

The agreement will strengthen cooperation between Germany and Namibia in the field of green hydrogen and related synthetic fuels. Both the countries have pledged to work together in the production, processing, storage, and transportation of green hydrogen products, along with its marketing and support of green hydrogen projects by the private sector.

The German Vice-Chancellor will visit Namibia in November this year with a business delegation after further work has been executed in accordance with the joint declaration. Habeck said that he will work on techniques to aggregate German demand for Namibian green hydrogen, provide better clarity for possible off-takes, and reduce the cost of capital for the related capital investments.

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The Russia-Ukraine conflict is putting a burden on the energy sector in Germany. The country imports 40% of its natural gas from Russia. According to energy experts, this dependency on fossil fuels can be reduced by developing green hydrogen and its derivatives.

According to the Hydrogen Council, Germany currently has an estimated annual demand for green hydrogen at 1.7 billion m3. This demand is expected to rise over the next few years, in view of the current geopolitical context.

Germany has already started the development of the global green hydrogen market, including the start of cooperation with Namibia in this field. Last year in August, Berlin had announced €40 million in funding for Namibia to boost its green hydrogen production.

German private investors are also showing interest to invest in the green hydrogen sector in Namibia. This is the case of the German energy group Enertrag, which has joined forces with investor Nicholas Holdings to set up HYPHEN Hydrogen Energy in Windhoek. The joint venture will invest $9.4 billion in a green hydrogen project that will produce 300,000 tons of green hydrogen per year by 2030, by converting 5 GW of solar and wind power.

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