By Ayomide Otitoju
The African Development Bank (AfDB) has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian green hydrogen developer, to advance a landmark green ammonia project valued at more than $10 billion. The initiative is expected to position Namibia as a frontrunner in the global green hydrogen market.
The funding, drawn from the Sustainable Energy Fund for Africa (SEFA), will support front-end engineering design for solar and wind power generation, battery storage, electrolyser capacity and desalination facilities. These pre-investment activities aim to de-risk the project and attract large-scale financing for implementation.
SEFA, a multi-donor fund, provides catalytic capital and technical assistance to unlock private investment in renewable energy and energy efficiency across Africa.
The project’s first phase will tap Namibia’s exceptional solar and wind resources to deliver 3.75 GW of renewable power, extensive battery storage, 1.5 GW of electrolyser capacity and essential infrastructure including pipelines, transmission lines and expanded port facilities. All components will be developed to high environmental and social standards.
Once operational, the facility is expected to produce 2 million tonnes of green ammonia annually for export, while supporting local development under a 40-year concession agreement. It is also projected to avert 5 million tonnes of CO₂ emissions each year—comparable to removing over one million cars from the road—and deploy 7.5 GW of renewable energy, more than ten times Namibia’s current installed capacity. Additionally, the project will provide 3 million litres of desalinated water daily to the arid Lüderitz region.
AfDB Country Manager for Namibia, Moono Mupotola, said the initiative represents more than infrastructure investment. “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,” she said.
Hyphen CEO Marco Raffinetti welcomed the Bank’s backing, describing it as a strong endorsement of Namibia’s ambition to build one of the world’s most transformative green hydrogen projects. He said the facility will fund key design work ahead of a final investment decision.
Daniel Schroth, AfDB Director for Renewable Energy and Energy Efficiency, called SEFA’s support “catalytic,” unlocking billions in future financing.
The project is expected to create 15,000 construction jobs and 3,000 permanent positions, with 90% reserved for Namibians and 20% specifically targeting youth in a country where youth unemployment exceeds 38%.
Regarded as a flagship initiative under Namibia’s Southern Corridor Development Initiative, the Hyphen project is expected to serve as a model for other African countries with abundant renewable energy potential.
