German power company ends ammonia talks with Hyphen

German electricity company RWE Generation has reviewed its interest in Namibia’s Hyphen Hydrogen Energy project, citing slow European demand. RWE Generation spokesperson Olaf Winter yesterday told The Namibian it does not plan to import ammonia from the project.

“Demand for hydrogen and hydrogen derivatives such as ammonia is developing slower than expected in Europe. Against this backdrop, we have reviewed the relevant projects at RWE. This included the project with Hyphen in Namibia,” he said.

Winter said RWE reviewed its projects last November, including the Hyphen project in Namibia, to reallocate capital earmarked for investment purposes.

Winter said after the outcome of the elections in the United States (US), the risks for offshore wind projects have become greater, and this applies to RWE’s offshore wind project off the east coast of the US, which could be delayed due to pending permits.

‘NO LINK’

Winter was responding to questions about a letter the Nama Traditional Leaders’ Association (NTLA) wrote, which claimed the company had withdrawn from an agreement to buy ammonia for export to Europe from Hyphen Hydrogen Energy.

The project is setting up shop on ancestral Nama land, the letter said.

“There is no causal link between our decision on Namibia and a letter from the NTLA. In a letter from July 2025, the NTLA has invited RWE to a conference regarding the Hyphen project. We politely declined the invitation, pointing out that we do not run any projects in Namibia,” says Winter.

The NTLA, with its partners, the Society for Threatened Peoples, the European Centre for Constitutional and Human Rights, Forensic Architecture, and Minority Rights Group International, said in a press statement RWE’s recent decision to withdraw follows an open letter sent on 2 April, in which the organisations urged RWE to withdraw until the indigenous people’s rights of the Nama are fully respected.

“The letter informed RWE about the perpetuation of colonial patterns through German orders of land dispossession and extermination, a genocide that let to the decimation of 50% of the Nama people, as well as the destruction of a biodiversity hotspot.

“It highlights how today’s extractive practices perpetuate colonial patterns on the same land,” the letter reads.

“This decision was confirmed in response to an inquiry made by the NTLA, representing the indigenous Nama people, together with its international partners,” the statement says.

RWE chief executive Markus Krebber says the company applies strict return requirements to the investment of their funds and regularly reviews their capital allocation.

He says if the risk-return profile in certain areas changes temporarily, they reallocate the capital earmarked for this purpose accordingly.

He says due to expected delays in the US offshore wind market and in the European hydrogen business, the company has decided to buy back shares with a total volume of up to 1.5 billion euros.

“This underlines our strong commitment to creating value for our shareholders. Given the global demand for clean electricity, we will, however, continue to expand our clean portfolio by investing billions of euros in Europe and the US, thereby also driving forward the energy transition here in Germany,” says Krebber.

It turns out, however, that RWE did not have a purchase agreement with Hyphen Hydrogen Energy, as confirmed by Hyphen spokesperson Ricardo Goagoseb.

‘NO AGREEMENT’

He says no purchase agreement was ever signed with RWE Supply and Trading for the planned green hydrogen project at Lüderitz.

Goagoseb says the company only had an agreement to explore potential off-take.

“For a project of this size, you sign memoranda of understanding or non-disclosure agreements to guide discussions and protect commercial information. But there was no purchase agreement. Hyphen continues to engage with stakeholders, including traditional leaders, however, the NTLA itself is divided and not fully constituted,” he says.

Hyphen Hydrogen Energy, the British-German venture, plans to build a 4 000km2 ammonia hub inside Tsau ||Khaeb National Park.

The park sits on ancestral Nama land which had been declared ‘Sperrgebiet’ (restricted area) by Germany, and access continues to be restricted for Nama people and the general public. Goagoseb rejects claims that Hyphen is marginalising communities.

“That land is government land and has been for more than a century during different administrations. Traditional authorities are recognised by the government and have a seat at the table. They can raise any concerns directly with the government.

“Communities have been consulted through extensive roadshows. Chiefs attend our events and have been part of discussions,” he says.

Green Hydrogen Programme spokesperson Jona Musheko says the programme is aware of the reports and is assessing the legitimacy of the said letter. He says the project is still in its feasibility stage until next year, with more stakeholders consultations, such as with the NTLA, yet to be completed.

“This includes the strategic environmental and social assessment that the programme is busy carrying out, which has a component of extreme consultations with stakeholders to ensure all stakeholders are fully appraised with the project.

“Should the communities after all these consultations refuse to allow the project implementation, we shall definitely cross that bridge when we get there,” Musheko says.

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