Hyphen to spend N$120 million on land rights
Namibia’s green hydrogen strategy extended beyond Hyphen
The government would also benefit from environmental fees and other levies associated with land use.
Hyphen Energy will invest more than N$1.2 billion annually in its green hydrogen project in Namibia.
This is according to details revealed during Hyphen’s socio-economic development content roadshow in Rundu yesterday.
Senior economic development manager Johannes Shipepe explained that Hyphen would pay the Namibian government approximately N$120 million annually for land use rights during the current phase within the Saute //Khaeb National Park.
As the project transitions into construction, this figure is expected to rise to N$200 million per year.
During the operational phases, it will increase again to N$240 million, with an annual escalation rate of 2%.
Operational costs
Over the 40-year lifespan of the concession, these payments could total nearly N$8.4 billion, excluding other operational costs and environmental fees.
Shipepe said these figures represented Hyphen’s financial obligations to the government and were part of Namibia’s broader strategy to develop its green energy sector and foster new industries.
In addition to land use payments, the government would receive a 2% royalty on revenue from ammonia sales derived from hydrogen production.
The government would also benefit from environmental fees and other levies associated with land use.
However, these projected figures have sparked concerns about whether Namibia’s natural resources and land are being utilised optimally, especially given the sensitive environment within a national park.
Pilot projects
Shipepe explained that Namibia’s green hydrogen strategy extended beyond Hyphen, highlighting other pilot projects across the country.
These included Taurus, which focused on fertiliser production using hydrogen; Trenergy, which aimed to refuel mining fleets with hydrogen instead of diesel; and Enron Origin, which explores green iron manufacturing.
While these projects demonstrated the potential for local industry development, Namibia’s current demand for hydrogen remained limited, making large-scale local consumption unlikely in the near future according to Shipepe.
Rundu urban constituency councillor Vicky Kauma, standing in for Kavango East governor Hamunyera Hambyuka, emphasised the regional benefits of the project.
In his speech, he stated that the initiative would contribute positively by generating employment, developing skills, and creating local procurement opportunities, thereby fostering socio-economic growth in the region.
This is according to details revealed during Hyphen’s socio-economic development content roadshow in Rundu yesterday.
Senior economic development manager Johannes Shipepe explained that Hyphen would pay the Namibian government approximately N$120 million annually for land use rights during the current phase within the Saute //Khaeb National Park.
As the project transitions into construction, this figure is expected to rise to N$200 million per year.
During the operational phases, it will increase again to N$240 million, with an annual escalation rate of 2%.
Operational costs
Over the 40-year lifespan of the concession, these payments could total nearly N$8.4 billion, excluding other operational costs and environmental fees.
Shipepe said these figures represented Hyphen’s financial obligations to the government and were part of Namibia’s broader strategy to develop its green energy sector and foster new industries.
In addition to land use payments, the government would receive a 2% royalty on revenue from ammonia sales derived from hydrogen production.
The government would also benefit from environmental fees and other levies associated with land use.
However, these projected figures have sparked concerns about whether Namibia’s natural resources and land are being utilised optimally, especially given the sensitive environment within a national park.
Pilot projects
Shipepe explained that Namibia’s green hydrogen strategy extended beyond Hyphen, highlighting other pilot projects across the country.
These included Taurus, which focused on fertiliser production using hydrogen; Trenergy, which aimed to refuel mining fleets with hydrogen instead of diesel; and Enron Origin, which explores green iron manufacturing.
While these projects demonstrated the potential for local industry development, Namibia’s current demand for hydrogen remained limited, making large-scale local consumption unlikely in the near future according to Shipepe.
Rundu urban constituency councillor Vicky Kauma, standing in for Kavango East governor Hamunyera Hambyuka, emphasised the regional benefits of the project.
In his speech, he stated that the initiative would contribute positively by generating employment, developing skills, and creating local procurement opportunities, thereby fostering socio-economic growth in the region.
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