Hyphen Hydrogen Energy and the Development Bank of Southern Africa (DBSA) announce plans to enter into a funding facility to be used to progress the development of Hyphen’s landmark green hydrogen project.
The Project Preparation Facility from the DBSA will go towards the partial funding of engineering, environmental and socio-economic development workstreams on the process to developing the project up to final investment decision.
The Hyphen project will have a considerable transformational impact on Namibia and its economy. The total project capital investment of US$10 billion is roughly equivalent to Namibia’s annual GDP. At full scale development, anticipated before the end of this decade, the project will produce 2 million tonnes of green ammonia annually for regional and global markets, and envisages 15,000 employees during the construction phase and 3,000 employees once fully operational.
Marco Raffinetti, CEO of Hyphen Hydrogen Energy, stated, “The Southern Africa region has a crucial role to play in the global green hydrogen race, not only through the leverage of the regions renewable resource, but in the regions participation in the financing of the energy transition. The finalisation of this funding commitment demonstrates the belief of DBSA in the Hyphen project. We look forward to walking the journey with DBSA to financial close, where we hope that both these organisations will be significant providers of debt funding to the project.”
Catherine Koffman, Group Executive Project Preparation at the, DBSA, noted, “The green hydrogen economy presents new economic opportunities – new skills, employment, and community opportunities – for Namibia. The development of this new industry will support the longer-term energy security priority and the just energy transition contribution will proactively address socio-economic development. The DBSA recognises the potential of Namibia’s dynamic green hydrogen industry, which is poised to become a beacon of sustainable progress not only for Namibia, but for the entire Southern African region. The Hyphen project, is not only the first Gigawatt-scale project in Namibia, but an example of how we use such projects as catalyst to propel the region towards a greener and more prosperous future.”