African Development Bank Approves $10m for Namibia’s Green Hydrogen Project

The African Development Bank’s Board of Directors has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian developer leading one of Africa’s most ambitious green hydrogen ventures. The financing will support a green ammonia project valued at more than $10 billion, positioning Namibia to play a pioneering role in the global green hydrogen economy.

The loan, drawn from the Sustainable Energy Fund for Africa (SEFA), will fund front-end engineering design studies for key project components. These include solar and wind generation, battery energy storage, electrolyser capacity, and desalination infrastructure—all aimed at de-risking the development and attracting large-scale investment.

SEFA is a multi-donor facility that provides catalytic finance to unlock private-sector investment in renewable energy and energy efficiency. Its technical assistance and concessional finance solutions target market barriers, strengthen project pipelines, and improve risk-return profiles to accelerate clean energy development across the continent.

The Hyphen project will leverage Namibia’s exceptional solar and wind resources. Its first phase features 3.75 GW of renewable energy generation, extensive battery storage, 1.5 GW of electrolyser capacity, and supporting infrastructure, including desalination plants, pipelines, transmission lines and upgraded port facilities. All components will be developed to stringent environmental and social standards.

When fully operational, the project is expected to produce 2 million tonnes of green ammonia annually for export to international markets. It also aims to deliver substantial local benefits through a comprehensive socio-economic development plan embedded in the 40-year concession agreement.

The project will avert an estimated 5 million tonnes of CO₂ emissions each year—equivalent to removing more than one million cars from the road. It will also deploy 7.5 GW of renewable energy capacity, more than ten times Namibia’s current installed capacity. In addition, the project includes the daily provision of 3 million litres of clean water through desalination for the water-scarce town of Lüderitz in southern Namibia.

“This is about far more than energy infrastructure,” said Moono Mupotola, African Development Bank Country Manager for Namibia and Deputy Director General for Southern Africa. “This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet. Namibia is showing the world that Africa is not just participating in the green economy: we are defining it.”

Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said the Bank’s support signals strong confidence in both the company’s plans and Namibia’s broader ambitions. “We are deeply appreciative of the African Development Bank for partnering with us in the development of this transformative project. This facility will partially fund the technical design phase as we move towards the final investment decision.”

Daniel Schroth, Director for Renewable Energy and Energy Efficiency at the Bank, added: “SEFA’s intervention is catalytic. By supporting these essential pre-investment activities, we are unlocking billions in project financing. This is a strategic, high-impact development project.”

The project is expected to generate around 15,000 construction jobs and 3,000 permanent positions, with 90% of roles reserved for Namibians and 20% specifically targeted at youth, in a country where youth unemployment exceeds 38%.