The loan from AFDB’s Sustainable Energy Fund for Africa will support front-end engineering design studies for the 7.5GW of renewables, 3GW of electrolysis, and desalination infrastructure that will make up Hyphen Hydrogen Energy’s flagship project.
Having already awarded FEED and EPC contracts to China National Chemical Engineering Company subsidiary CC7, Hyphen CEO Marco Raffinetti said the loan would support the $10bn project in reaching FID.
“The African Development Bank’s approval of this pre-investment facility represents a strong vote of confidence in Hyphen’s project and in the broad ambitions of Namibia to develop one of the world’s most transformative green hydrogen projects,” he said.
Hyphen’s project is planned to be built on 4,000km2 of concessioned land within the Tsau Khaeb National Park, and could bring online one million tonnes per annum (mtpa) of green ammonia production by the end of 2028.
80km from the electrolysis installation, Agra Point will host a desalination and ammonia synthesis plant, with terminal infrastructure to support exports.
Hyphen says it plans to provide excess power and desalinated water to local communities.
From 2030, the company intends to double the project’s capacity.
AFDB Country Manager for Namibia, Moono Mupotola, said the project could demonstrate Africa’s capacity to “lead the global energy transition”, create jobs, and “build prosperity”.
“By supporting these essential pre-investment activities, we are unlocking billions in project financing,” added AFDB’s Director for Renewable Energy and Energy Efficiency. “This is a strategic, high-impact development project.”
It is slated as the first element of the Namibian government’s planned Southern Corridor Development Initiative, which aims to produce 3 mtpa of green hydrogen.