Germany Pours More Billion Into Namibia's Green Hydrogen

Green Hydrogen can be a future reality with collaboration / RWE. German energy company RWE has penned a deal that could see it buy 300,000 t...

Green Hydrogen can be a future reality with collaboration / RWE.

German energy company RWE has penned a deal that could see it buy 300,000 tonnes per annum of ammonia from Hyphen Energy’s planned $10 billion green hydrogen project in an environmentally sensitive area of Namibia. Hyphen Energy is developing a huge green hydrogen scheme within a protected area of southwest Namibia

German utility company has signed a Memorandum of Understanding (MoU) with Hyphen Hydrogen Energy to become the Namibian company’s preferred buyer of green ammonia for export to meet growing energy demand in Europe. RWE, which is a significant oil and gas producer, said it could import the Namibian ammonia via a facility it aims to have ready to operate at Brunsbettel, Germany, in 2026.

News of this agreement came just days before Germany’s Minister for Economic Affairs Robert Habeck began a five-day trip to Namibia and South Africa that demostrated how Berlin’s energy diversification and decarbonisation agenda growing, focusing on green hydrogen.  Hyphen Hydrogen Energy, in partnership with German energy firm Enertrag, is developing Namibia’s first green hydrogen project which will produce up to 1.7 million tons of green ammonia by 2027.

Meanwhile RWE is also constructing a green ammonia receiving port terminal in Brunsbuttel through 2026 which could serve as one port of destination for Namibian ammonia, according to a statement. The agreement was signed during German Economy Minister Robert Habeck’s five-day visit to Namibia and South Africa in search of green hydrogen deals to meet Germany’s energy needs.

European countries are seeking investment opportunity in Greean Hydrogen projects in Namibia / RWE.

“This milestone underpins our ambitious targets to export green hydrogen globally from Namibia. By establishing strong connections with policymakers and offtakers across Europe, we are working with the Government of Namibia to develop the industry which will spearhead southern Africa’s role in achieving regional and global decarbonisation goals,” Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said.

Commenting on why RWE is seeking more energy deals in Africa, Ulf Kerstin, Chief Commercial Officer of RWE Supply & Trading, said: “Green molecules are the only way for many industries in Germany to achieve their climate targets. 

In the long term, Germany’s demand for them will have to be met mainly through imports. That’s why we’re looking forward to progressing the offtake discussions with Hyphen – to bring green ammonia from Namibia to Germany.”