Namibia's ambition to establish itself as a major global producer of green hydrogen and its derivatives received a significant vote of confidence, with the African Development Bank (AfDB) selecting Hyphen Hydrogen Energy for a prospective US$5.93 million (about N$100 million) reimbursable grant to advance its flagship green hydrogen project towards Final Investment Decision (FID).
The funding, which remains subject to approval by the AfDB Board of Directors, represents the latest financial backing for Hyphen's multi-billion-dollar project and strengthens an increasingly important relationship between Hyphen and the continental development finance institution.
The latest grant comes on top of a US$10 million reimbursable grant announced by the AfDB in December 2025. Hyphen said the latest support would contribute towards project development work required before FID, with the first phase targeting FID by the end of 2027. The grant announcement is particularly significant as Hyphen was one of only four projects selected from 81 proposals submitted from 18 African countries under the AfDB's Africa Green Hydrogen Programme (AGHP).
According to the AfDB, the four selected projects collectively represent estimated investments of approximately US$23 billion, alongside 20 gigawatts of solar and wind generation capacity, 7GW of electrolyser capacity and 2 950 megawatt-hours of battery storage.
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Hyphen's US$5.93 million allocation is also the largest individual grant awarded under the latest call. The funding is designed to help move a capital-intensive project from development and feasibility work to investment readiness, a critical hurdle for an undertaking requiring billions of dollars in eventual capital.
At full development, Hyphen's project is expected to comprise approximately 7GW of renewable energy generation capacity and 3GW of electrolyser capacity, producing up to two million tonnes of green ammonia annually for regional and international markets.
The first phase is targeting one million tonnes of green ammonia per annum. Hyphen stated the green ammonia could serve emerging markets for sustainable maritime and aviation fuels, placing Namibia within global efforts to decarbonise sectors that are difficult to electrify directly. Marco Raffinetti, Hyphen chief executive officer, described the AfDB selection as an endorsement of the project's maturity and quality.
"Strategic backing from African and international lending institutions is vital as we advance through this crucial project preparation phase toward FID," said Raffinetti.
The AfDB's support also signals how development finance institutions are trying to bridge the gap between ambitious green-energy projects and private-sector investment.
Daniel Schroth, AfDB director for renewable energy and energy efficiency, said Africa's renewable resources provide the continent with an opportunity to become competitive in the emerging green hydrogen and derivatives market.
"Through the SEFA-funded AGHP, the African Development Bank is helping to move high-potential projects closer to investment readiness," said Schroth.
Hyphen estimates that construction of the project could create up to 15 000 jobs, with approximately 3 000 permanent operational jobs potentially being created once both phases are completed.
The developer is targeting 90% Namibian participation in the workforce, with 20% of jobs specifically earmarked for local youth.
These commitments could make the project one of the largest industrial employment opportunities in Namibia, although the scale of the promised economic impact depends on how much Namibian workers and companies can participate in construction, manufacturing, logistics, maintenance, and eventual operations.
Hyphen also projects substantial environmental benefits, estimating that the facility could avoid five to six million tonnes of carbon emissions annually, which is more than Namibia's current total national carbon footprint, according to the company.
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Meanwhile, the broader AfDB programme is explicitly intended to encourage private investment, foreign direct investment, industrial development, export earnings and technology and skills transfer. This agenda is important for Namibia because the country's green hydrogen strategy has increasingly been framed not simply as an energy project, but as a potential foundation for new industrial value chains.
Green ammonia production can support downstream industries and export markets while creating demand for renewable electricity, water infrastructure, engineering, logistics, and specialised technical skills. For the Namibian project, the immediate milestone is not production but reaching FID. In this vein, the US$5.93 million grant is reimbursable and prospective, rather than the multibillion-dollar capital required to construct the full project. While the AfDB support can help reduce development and preparation risks, substantial additional financing will still be required before construction can proceed at full scale.
