Mega money for mega projects

The United Nations’ Green Climate Fund (GCF) has approved US$56 million (about N$931 million) for Namibia’s green hydrogen sector, supporting production, downstream products such as green ammonia and green methanol, and the decarbonisation of industries that are difficult to transition away from fossil fuels.The funding was approved at the GCF’s 46th board meeting, held in Songdo, South Korea, from 26 to 29 October 2026.The board approved US$15 million for the Development Tranche of SDG Namibia One and a further US$41 million for its Construction Equity Tranche.The Development Tranche finances early-stage project development, while the Construction Equity Tranche provides equity capital to support projects through the construction phase.According to Mercia Geises, chief executive of SDG Namibia One, the allocation is a major boost to Namibia’s ambition to develop a green industrial sector.Besides the planned Hyphen Hydrogen Energy project, initiatives expected to benefit include the HyIron project, the Daures Green Hydrogen Village and the Zero project.For Hyphen, the funding will help finance the government's 24% stake in the development, which is valued at more than US$10 billion, Geises said.SDG Namibia One pools funding from various investors and allocates it proportionally across approved projects. The equity fund has a 12-year lifespan, after which the investments will be realised and returns distributed to investors.Geises expects the money to become available in Namibia during the first quarter of 2027. "I think it is absolutely good news, with the potential to change lives," she said.She expects substantial investment in construction and operations, creating jobs and generating tax revenue for the national treasury, including through import duties and income tax. Namibian institutional investors will also have an opportunity to participate.Opportunities for local businessesGeises said the projects could create significant opportunities for local contractors, small and medium-sized enterprises (SMEs) and the wider workforce."There are parts of the work that local contractors and SMEs can do. Pilot projects have tested the scale and capabilities of Namibian companies, for instance in earthmoving and earthworks, plumbing and piping. There are massive opportunities, and experienced plumbers can learn and grow," she said.She also pointed to opportunities in electrical connections, solar installations and welding, noting that Namibia already has experience in the solar energy sector.However, she acknowledged that the country still lacks a local content policy specifically for the green hydrogen sector.The supported projects are working towards delivering cost-competitive Namibian products by 2030, positioning the country to participate in early green hydrogen offtake opportunities, she said.Geises described the participating developers as committed but cautioned that projects of this scale take time to materialise."These are mega-scale projects, bigger than the national GDP on a combined basis. They do take time," she said.SDG Namibia One is currently focused on financing investments that reduce project risks, while helping developers secure market access and offtake agreements.The projects still require considerable support, particularly with licensing, permitting and other development processes, as well as addressing legal and regulatory constraints."Reforms need to be put in place. Remember, this has never been done at this scale," Geises said.Beyond green hydrogen productionBeyond the major projects already identified, SDG Namibia One is exploring opportunities in synthetic fuels and mineral processing using hydrogen as a reducing agent.Other potential investment areas include transport-related industries such as shipping, aviation, rail and long-haul freight, which are difficult to decarbonise.The fund is also looking at the use of biogas as a sustainable input for blended hydrogen products and fuels.

Mega money for mega projects

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Namibian Sun 2026-11-10

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Mega money for mega projects

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Namibian Sun 2026-11-10

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