SDG Namibia One Fund And Zhero Europe Sign Development Funding Deal For Industrial-Scale Green Ammonia Project In Namibia, South Africa

SDG Namibia One Fund, Namibia’s dedicated fund for energy transition and green hydrogen infrastructure, has signed a Development Funding Agreement with Zhero Europe to advance the Zhero Molecules Walvis Bay Project. The project is an industrial-scale green ammonia facility located near Walvis Bay in Namibia’s Erongo Region, on the central coast. SDG Namibia One Fund, also known as Climate Investor Three Namibia, is managed by Climate Fund Managers (CFM), a climate-focused blended finance investment manager, in partnership with Dutch development finance institution Invest International and the Environmental Investment Fund of Namibia (EIF). The fund is supported by the European Union’s Global Gateway investment strategy and Invest International.

Through this agreement, SDG Namibia One Fund has committed up to USD 5.15 million in development funding to help Zhero complete feasibility studies and other development activities required to progress the project toward a final investment decision, targeted for 2027. Commercial operation is expected to begin in 2030. Zhero Molecules Walvis Bay is Zhero’s flagship green molecules project. Once operational, the facility is expected to produce 500,000 tonnes of green ammonia annually, avoiding roughly 1.2 million tonnes of CO₂ emissions each year.

Beyond its contribution to decarbonisation, the project is expected to deliver significant socioeconomic benefits in Namibia, creating around 6,000 jobs during construction and 500 permanent positions, while generating opportunities for local businesses and service providers throughout the value chain. The project will be powered by an integrated renewable energy system comprising 3 GW of solar PV, 2.2 GWh of battery energy storage, a 1.6 GW electrolyser system, and 110 km of new transmission infrastructure. A desalination plant is planned to provide water for the facility.

The green ammonia produced is intended for global decarbonisation markets, including use in fertilisers, maritime fuels, and industrial feedstocks. Green ammonia is created by combining green hydrogen, generated via electrolysis powered by renewable energy, with nitrogen extracted from the air. It is a zero-carbon fuel and chemical feedstock, particularly useful for decarbonising sectors like fertilisers, maritime shipping, and industrial processes, where alternative low-carbon solutions are limited.

Darron Johnson, Regional Head of Africa at Climate Fund Managers, noted that the Zhero Molecules project aligns closely with Namibia’s ambition to develop a competitive green hydrogen and ammonia industry. He highlighted the site’s advantages, including exceptional solar resources, ample land, and direct access to deep-water export infrastructure at Walvis Bay. Johnson explained that through the blended finance structure, SDG Namibia One Fund is providing early-stage development capital to de-risk the project, laying the groundwork for private investment during the construction phase.

Paolo Gallieri, Chief Operating Officer at Zhero, stated that the development funding from SDG Namibia One Fund complements Zhero’s own investment in the project. He emphasized that the fund’s deep understanding of Namibia’s ecosystem and blended finance model will be critical to the project’s success. Gallieri highlighted Namibia’s natural resources, strategic location, and national vision as key factors for establishing the country as a global leader in green ammonia and hydrogen.

European Commissioner for International Partnerships, Jozef Síkela, commented that the project demonstrates how Global Gateway cooperation in renewable energy can create tangible industrial and economic value, including thousands of jobs in Namibia and a sustainable supply of clean energy that supports Europe’s decarbonisation efforts. SDG Namibia One Fund is a blended finance facility designed to mobilise public and private investment into Namibia’s green hydrogen and energy transition sectors. The fund currently manages EUR 65 million in early-stage development funding from European donors and is in the process of raising additional capital to support construction-phase investments.