EU reaffirms commitment to Namibia’s green industrial future at HyIron launch

Ambassador Ana Beatriz Martins at the inauguration of the HyIron Oshivela Plant, Arandis, 11 April 2025

I am truly honoured and thrilled to stand before you today, in this beautiful setting surrounded by Namibia’s desert, to mark a historic moment – the inauguration of the HyIron Oshivela Plant.

With this inauguration, in the gracious presence of president Netumbo Nandi-Ndaitwah, we celebrate a milestone in Namibia’s path towards green industrialisation and indeed a milestone in Africa. For we stand on the first carbon-neutral production site in Africa that generates iron with green hydrogen molecules, directed and constructed by Namibian citizens.

This achievement is the fruit of the bold vision of Namibia’s political leadership, a leadership that decided to lead the way on green industrialisation with its rich renewable resources, reaping the benefits for its economic growth and creation of quality jobs. It is also a testament of Namibia’s entrepreneurial talent and resolve, which recognises the opportunities of translating policy visions into concrete business actions.

I dare say that today’s milestone in Namibia’s green transition is also a shining example of the enduring partnership between Namibia, the European Union, and its member states, in particular Germany. It was in October 2022 that the late president Hage Geingob and European Commission president Ursula von der Leyen signed a memorandum of understanding to establish a strategic partnership on green hydrogen and critical raw materials value chains. One year later, we launched a joint road map defining concrete steps to turn our common vision into benefits for Namibia and Europe. Less than three years on, we are celebrating one of the tangible results of the EU–Namibia partnership, a partnership that works.

HyIron is a global pioneer – after the successful conclusion of the first pilot phase, it is on the cusp of producing direct reduced iron on an industrial scale and completely free of carbon emissions. The two-year pilot phase harnessed cutting-edge German technology for a world-new product, helped by over 60 Namibian small and medium-sized enterprises and over 400 Namibian workers, who were involved in building this state-of-the-art industrial plant we see before us. And this is just the beginning, as in Phase 2 the plant will grow tenfold.

Namibians are at the heart of this transformation. The project not only creates much-needed jobs for young Namibians but also demonstrates that there is a market for new green technologies. Hard-to-abate sectors like steel production are responsible for 9% of global CO₂ emissions. Together we are showing the world that it is possible to make a change.

We are proud to be a partner in turning Namibia’s green transition policy into reality, as Team Europe and with the EU’s Global Gateway Investment Initiative for Africa. The federal government of Germany was instrumental in supporting HyIron with grant money in its experimental phase. As HyIron enters Phase Two to scale up production from 15 000 to 200 000 tonnes per year, the EU and the Netherlands will join as partners contributing €12.9 million / N$258 million in grants to Namibia’s SDG1 Fund. Prospected offtake agreements with leading European and Asian steel and manufacturing companies are clear signs of the global market confidence in this new product.

What we are witnessing today proves that the strategic partnership between Namibia and the EU is not just words; it is about action and delivering concrete results. Not only do Europe’s ambitious decarbonisation targets and regulatory tools, like the Carbon Border Adjustment Mechanism, make us reliable offtakes. It is worth noting that EU companies are also leading investors, bringing more growth and job opportunities for Namibians in the future.

At least seven European companies are seeking to invest in Namibia’s green hydrogen economy, with a prospective investment pipeline exceeding €20 billion or N$430 billion. HyIron and Cleanergy are among the first to complete their first pilot phase. There are other businesses involving European capital and technology, such as Zhero and Hyphen, that are expected to reach a final investment decision by the end of next year.

In a genuine Team Europe approach, the EU and member state governments are complementing European business initiatives with targeted support. Between the private and public sectors, we have at least six European countries active in the green energy sector in Namibia.

The EU’s support encompasses investments through blended finance as just mentioned, capacity-building – notably to allow the Green Hydrogen Programme to develop an enabling regulatory framework and perform the necessary environmental, social and governance assessments. Further building blocks include capacity building to upgrade Namibia’s port infrastructure to muster the green transition, vocational and education training programmes in the green energy sector, and support to Namibia’s civil society work on transparency, participation and public awareness on the renewable energy and extractive industries.

This comprehensive 360-degree approach is intended to embrace all aspects of development, so that our grants and loans can leverage private investments that are viable, that create quality jobs and lift people out of poverty, while respecting civic, social and environmental standards. These are the principles that define the EU’s proposition and will continue to do so, because Europe remains steadfast in its partnership with Africa – and with Namibia.

In conclusion, I wish to congratulate Johannes Michel for pursuing this extraordinary project and commend the diligence of Namibian entrepreneurs who constructed this site in record speed. May HyIron’s success story inspire other entrepreneurs and help accelerate the transition to more carbon-neutral economies.

We are only at the beginning. Following the excitement and scepticism around GH2, we are now at delivery. I once heard that GH2 was a plan for the future. Well, today we can say that the future is here and now in the Land of the Brave!

Thank you.

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