AfDB backs Namibia’s $10-billion green hydrogen drive

WINDHOEK, December 12, 2025 – The African Development Bank has approved a USD 10-million loan to Namibia’s Hyphen Hydrogen Energy to support a large-scale green ammonia project, the bank said on Tuesday.

The project, valued at more than USD 10 billion, aims to produce 2 million tons of green ammonia annually for export, with 3.75 GW of renewable energy, 1.5 GW of electrolyser capacity, and desalination and port infrastructure planned in the initial phase. The financing, from the bank’s Sustainable Energy Fund for Africa, will fund front-end engineering design to de-risk the project and attract private investment.

The development is expected to create 15,000 construction jobs and 3,000 permanent positions, with 90% allocated to Namibians and 20% targeted at youth. It will also produce 3 million litres of desalinated water daily and cut 5 million tonnes of CO2 emissions annually.

“This is about demonstrating Africa’s capacity to lead the global energy transition,” African Development Bank deputy director-general Moono Mupotola said. Hyphen CEO Marco Raffinetti called the support “a strong vote of confidence” in the transformative potential of the project.

Hyphen Hydrogen Energy is a Namibian joint venture between Nicholas Holdings and Enertrag. The company leads the Hyphen project, the flagship of Namibia’s Southern Corridor Development Initiative, aimed at turning the country into a green hydrogen hub.

The African Development Bank is a multilateral development finance institution focused on spurring sustainable economic development and social progress in African countries. It manages SEFA, a multi-donor special fund supporting renewable energy and energy efficiency projects across the continent.

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