EU Commits $41M to Support Namibia's Green Hydrogen Projects
TLDR
- The European Union and partners pledge €36.9 million for Namibia's transition to cleaner fuels, focusing on green hydrogen projects.
- Namibia aims to be a hub for green hydrogen technology, with EU committing €25 million to leverage €1 billion investments in the hydrogen value chain.
- Africa, including South Africa and Morocco, is part of the global scramble for green hydrogen, showing potential to be a key renewable energy hub but facing challenges in cost competitiveness.
The European Union, along with other partners, has pledged €36.9 million ($41 million) to support Namibia’s transition to cleaner fuels, including green hydrogen. The funding will primarily back green-hydrogen projects in Namibia, which aims to become a hub for this emerging technology.
A €25 million commitment from the EU leads the effort, to leverage public- and private-sector investments estimated to reach €1 billion across the hydrogen value chain, encompassing production, transportation, and storage.
Green hydrogen is proving to be the latest energy commodity scramble among a few African countries, including South Africa and Morocco. With its vast resources, Africa has the potential to become one of the main global renewable energy hubs. But it remains to be seen whether its nations can deliver a cost-competitive product in an emerging global hydrogen sector.
Key Takeaways
Namibia is pursuing several ambitious projects, including the $10 billion Hyphen project, which has seen investment from Germany's Enertrag SE. In addition, Compagnie Maritime Belge SA plans to raise $3.5 billion to build an ammonia plant, which will connect to a new storage and export facility at the Port of Antwerp-Bruges. The funding is expected to bolster commercial ties between Namibia and the EU in green hydrogen and critical raw materials while increasing employment opportunities and facilitating both regions' green transitions.
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