Namibia aims to produce 1.3mn t/yr of renewable ammonia and 2mn t/yr of hydrogen-based direct reduced iron (DRI) by 2030, according to its latest national development plan released this week.
The country's project pipeline suggests it could comfortably meet the ammonia target, assuming projects progress as planned. Three large-scale renewable ammonia projects could yield well over 1mn t/yr by the end of the decade, based on current schedules.
Namibia's flagship hydrogen project Hyphen aims to produce 1mn t/yr of renewable ammonia in its first phase, which is scheduled to begin in 2028. Output could rise to 2mn t/yr from 2030, when the project reaches full capacity.
Two other projects — one led by Namibian-Belgian joint venture Cleanergy, and another by European developer Zhero and Chinese renewables firm Envision — are together targeting more than 700,000 t/yr of renewable ammonia.
The HyIron project in Oshivela, led by a consortium of Namibian and German companies, could provide the 2mn t/yr of DRI, with this capacity expected to be reached by 2028. A first phase, using a 12MW electrolyser to produce 15,000 t/yr of DRI, began operations in April.
Namibia also sees a role for renewable hydrogen in power generation. The government has set a target of 143 GWh of electricity from renewable hydrogen. French firm HDF Energy, which develops hydrogen-based grid stability projects, is planning a plant in Namibia that could contribute to this goal.
To support export demand for renewable hydrogen and its derivatives, the government is seeking to develop contracts for difference (CfDs) with partners in key markets such as the EU, Japan and South Korea. Such mechanisms could help "make many projects in Namibia bankable", according to the development plan.
The government also plans to establish special economic zones (SEZs) offering financial incentives, streamlined permitting and infrastructure support. A SEZs bill is under consultation, the government said, noting that Namibia also aims to develop common-user infrastructure to support hydrogen projects.
The plan sets a target of 30pc "local content and participation" in the hydrogen sector and encourages domestic manufacturing of components such as wind turbines, batteries and electrolysers.
Namibia is seen by many in the industry as one of sub-Saharan Africa's most promising hydrogen markets. It has attracted investment from international partners including the EU. But projects still face challenges, including securing offtake. Local environmental groups have also raised concerns about the potential impact of the Hyphen project on biodiversity.
| Renewable hydrogen projects in Namibia | |
| Project | Production in/from 2030 |
| HyIron Oshivela | 2mn t/yr of H2-based direct reduced iron |
| Cleanergy | 220,000 t/yr of renewable ammonia |
| Zhero/Envision | 500,000 t/yr of renewable ammonia |
| Hyphen | 2mn t/yr of renewable ammonia |
| HDF Energy | 142 GWh of baseload electricity |
| Namibia Green Hydrogen Programme | |
