Hyphen secures N$102 million for hydrogen project

Hyphen Hydrogen Energy finalised a €5 million (N$ 102 million) agreement with the Development Bank of Southern Africa (DBSA) on the sidelines of the 28th United Nations Climate Change Conference (COP28).

Hyphen Hydrogen Energy chief Marco Raffinetti said this agreement is in line with a major theme at this year’s climate conference – international collaboration.

“Collaboration and partnerships with African lending institutions will be critical to the success of the Hyphen project. This funding facility shows these partnerships in action. It will provide crucial funding for the development and integration of the project and subsequently, the socio-economic development of Namibia.

Hyphen and the DBSA are aligned with the common purpose to drive the future of renewable energy in Namibia and beyond and we look forward to working together to achieve this,” he said.

The agreement outlines a project preparation funding facility to progress the development of Hyphen’s green hydrogen project in Namibia.

The funds will finance the engineering, environmental and socio-economic development work streams of the project.

Catherine Koffman, the development bank’s project preparation executive, noted the bank is committed to helping African nations lead in the green transition.

“The DBSA and Hyphen’s partnership will facilitate the creation of a new asset class in the energy sector with a profound and positive economic, social and environmental impact in Namibia and the region. Green Hydrogen is a versatile energy carrier that is vital for decarbonising key sectors of the economy, including hard-to-abate industries like steel and chemicals. The investment emphasises the bank’s commitment in accelerating the transition to net zero and looks forward to a successful completion of the project,” she said.

Hyphen and DBSA first announced their plans to enter into a funding facility in October.

Hyphen was recognised as a Low-Carbon Hydrogen Energy Transition Changemaker at COP28 on Tuesday.

Raffinetti said Hyphen is proud to be a pathfinder initiative in Namibia’s green industrialisation agenda.

“We are honoured that our project has been recognised as one of the world’s leading renewable energy projects in this pioneering initiative designed by the COP28 Presidency. As Namibia’s first large scale hydrogen project, we have an enormous responsibility to lead the way for those that will follow us in helping Namibia on her journey of creating a green industrialised economy,” he said.

Ten projects were identified as changemakers and leaders in the low-carbon hydrogen sector.

Also gracing the list is one of Hyphen’s parent companies Enertrag. The South African HyShift project has also been awarded.

Selected projects went through an initial application, shortlisting and selection process. The selection criteria involved the innovativeness and scalability of solutions. Executives from selected projects then had a chance to present their work before the award ceremony.