Under a funding agreement, Namibian clean investment fund, SDG Namibia One Fund, said it would provide blended finance to complete development and feasibility work through to a 2027 final investment decision.

Zhero was founded in 2022 by Marco Alvera, the CEO of green hydrogen-based synthetic methane firm TES. It describes itself as the owner and operator of large-scale renewable energy for green molecule production and energy storage solutions.

It currently has no projects under construction or in operation.

The project, which is expected to be online by 2030, plans to comprise 3GW of solar, 2.2GW of battery energy storage, 1.6GW of electrolysers, and 110km of transmission infrastructure to produce green ammonia for export.

Zhero also plans to build a new water desalination plant as part of the major development.

Climate Fund Managers’ (CFM) SDG fund is backed by the EU Global Gateway, which aims to support future supply chains for Europe in energy, transport, health, digital, and research.

European Commissioner Jozef Síkela said Zhero project could deliver thousands of jobs in Namibia while creating clean energy supply for European decarbonisation efforts.

The EU has been increasing its green hydrogen-related investments for overseas projects as it looks to secure supplies of low-cost molecules that could not be produced at home.

Due to the region’s solar resources, land availability, and access to deep-water export infrastructure, Walvis Bay is “well-suited” for large-scale green ammonia production, according to CFM Regional Head for Africa, Darron Johnson.

“Namibia has the natural resources, strategic location, and national vision to become a global leader in green ammonia and hydrogen,” added Zhero Chief Operating Officer Paolo Gallieri.