The African Development Bank (AfDB) has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian green hydrogen developer, to support a $10 billion green ammonia project that aims to position Namibia as a global pioneer in the green hydrogen economy.
The loan, sourced from the Sustainable Energy Fund for Africa (SEFA), will finance front-end engineering design studies for solar and wind generation, battery energy storage, electrolyser capacity, and desalination infrastructure. AfDB officials said the funding will help de-risk the project and attract the large-scale investment required for its realisation.
SEFA, a multi-donor special fund, provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. The Hyphen project will leverage Namibia’s world-class solar and wind resources, with its first phase including 3.75 GW of renewable energy generation, 1.5 GW of electrolyser capacity, battery storage, and supporting infrastructure such as desalination plants, pipelines, transmission lines, and port facilities.
Once completed, the project is expected to produce 2 million tons of green ammonia annually for export, while contributing to local development under a 40-year concession agreement. It will also avert 5 million tons of CO2 emissions each year—the equivalent of removing more than one million cars from the road—and deploy 7.5 GW of renewable energy capacity, more than ten times Namibia’s current installed capacity. Additionally, the project will supply 3 million liters of clean water daily to the water-scarce region of Lüderitz.
Moono Mupotola, AfDB Country Manager for Namibia, said the initiative represents more than energy infrastructure. “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 described the AfDB’s support as a “strong vote of confidence” in Namibia’s ambitions to develop one of the world’s most transformative green hydrogen projects. Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency, called SEFA’s intervention “catalytic,” noting it would unlock billions in project financing.
The project is expected to generate 15,000 construction jobs and 3,000 permanent positions, with 90 percent reserved for Namibians and 20 percent specifically targeting youth in a country where unemployment among young people exceeds 38 percent.
Seen as a flagship of Namibia’s Southern Corridor Development Initiative, the Hyphen project is expected to serve as a demonstration model across Africa, particularly in countries with abundant renewable energy resources.
