Netherlands and Namibia Forge Partnership for Green Hydrogen Infrastructure Development

The Netherlands and Namibia have joined forces in a strategic partnership to collaborate on the development of green hydrogen infrastructure, paving the way for new hydrogen supply chains connecting Lüderitz in Namibia to Rotterdam and its surrounding areas. This collaboration involves key stakeholders such as the Port of Rotterdam, Gasunie, Invest International, the Government of the Republic of Namibia (GRN), Hyphen Hydrogen Energy, Namibian Ports Authority (NamPort), and NamPower, who recently signed a memorandum of understanding (MoU) to drive the region’s largest fully vertically-integrated green hydrogen project in sub-Saharan Africa.

The MoU signifies the commitment of the three Dutch state-owned companies to strengthen and structure the existing cooperation between Namibia and the Netherlands in the field of green hydrogen. Their collaborative efforts aim to develop Namibia’s hydrogen economy and establish new trade relations with the Netherlands and other regions in Northern Western Europe.

Simultaneously, the Namibian government has announced its intention to exercise a 24% equity interest in the Hyphen project. This investment will be held through the SDG Namibia One fund, a blended financing infrastructure fund that will raise capital from local institutional investors and global investors to support the development of green hydrogen projects and related infrastructure in Namibia.

The establishment of the fund involves collaboration between Namibia’s Environment Investment Fund, Climate Fund Managers, and Invest International, with NH2 Fund Managers serving as the fund manager for SDG Namibia One. The initial funding of €40 million (~N$850 million) is provided as grant funding by Invest International and will be housed by the fund.

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The MoU also builds upon the ongoing partnership between NamPort, the Port of Rotterdam, and Hyphen in the development of a comprehensive plan for the port of Lüderitz. This plan, which has been in progress for over a year and is nearing completion, will be instrumental in facilitating the infrastructure required to support Namibia’s green hydrogen production ambitions. The collaboration will enable the sharing of knowledge and expertise to design and implement the necessary infrastructure effectively.

The signing of the MoU coincided with a joint working visit by Prime Minister Mette Frederiksen of Denmark and Prime Minister Mark Rutte of the Netherlands to Namibia on June 19. During this visit, the governments of South Africa, the Netherlands, and Denmark concluded a Heads of Agreement (HoA) with the aim of launching the SA-H2 Fund. This innovative blended finance fund seeks to accelerate the development of a green hydrogen sector and circular economy in South Africa.

The partnership between the Netherlands and Namibia marks a significant step toward advancing the green hydrogen industry and fostering international collaboration. By leveraging their respective expertise and resources, both countries are driving the development of sustainable hydrogen infrastructure and establishing valuable trade relationships, contributing to the growth of the global green hydrogen economy.

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