The African Development Bank (AfDB) has approved a 10 million US dollars loan to Hyphen Hydrogen Energy to support a green ammonia project worth over 10 billion US dollars, aiming to position Namibia as a global leader in green hydrogen.

The funding, provided through the Sustainable Energy Fund for Africa (SEFA), will cover front-end engineering and design studies for solar and wind generation, battery storage, electrolysis capacity, and desalination infrastructure, reducing project risk and attracting further investment.

SEFA, a multi-donor fund, provides technical assistance and concessional finance to overcome market barriers, strengthen project pipelines, and improve the risk-return profile of renewable energy investments across Africa.

The first phase includes 3.75 gigawatts of renewable energy, 1.5 gigawatts of electrolyser capacity, and supporting infrastructure such as pipelines, transmission lines, desalination facilities, and upgraded port access, all developed to high environmental and social standards.

Once operational, the facility is expected to produce two million tons of green ammonia annually for export, supply three million liters of clean water daily to Lüderitz, and avoid five million tons of CO2 emissions annually—equivalent to removing over one million cars from the road. The project will also add 7.5 gigawatts of renewable capacity, more than ten times Namibia’s current installed capacity.

“Namibia is demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for youth, and build prosperity while protecting the planet,” said Moono Mupotola, AfDB Country Manager for Namibia

The project is expected to create 15,000 construction jobs and 3,000 permanent positions, with 90 percent for Namibians and 20 percent targeting youth. It is a central element of Namibia’s Southern Corridor Development Initiative and a potential model for other African countries with renewable energy resources.