Namibia: Balancing Sustainable and Fossil Energy for the Future

As the world transitions towards sustainable energy, it is crucial to acknowledge that fossil fuels remain a significant part of the global energy mix.

Energy is an essential pillar of any economy: Availability, reliability, affordability and the security of energy supplies are necessary for development.

Namibia’s substantial solar, wind and biomass resources are a comparative national advantage that can be leveraged for long-term socio-economic benefit.

However, despite these renewable energy sources, we must remain cognisant of fossil fuels’ potential to drive economic growth.

The coexistence of both industries allows them to support each other’s development.

For instance, revenue from the oil and gas sector can fund research and infrastructure development for renewable energy projects such as green hydrogen.

This symbiotic relationship ensures a diversified energy portfolio, enhancing overall resilience and sustainability.

There is no compelling reason why using fossil fuels and energy-efficient technologies can’t be dramatically accelerated to contribute to Namibia’s development.

UPSTREAM PRODUCTION

Recent discoveries, such as the Venus and Mopane fields, present the greatest opportunities for Namibia.

The Venus discovery is set to be a game-changer should the appraisal campaign prove the commerciality of the discovery. A final report is due in October.

Namcor will retain 10% of these reserves on its balance sheet upon Final Investment Decision (FID) and Field Development Plan (FDP) approval, scheduled for quarter 2 of 2025.

Similarly, the Mopane discovery, announced in January and April, promises significant potential with recoverable volumes surpassing those of the Venus discovery.

This complex discovery, with high associated gas and condensate, has exceeded expectations in DST flow rates.

Its less technically challenging nature suggests an easier and faster path to development; an early production concept potentially puts the first production date in 2028.

These discoveries represent a monumental opportunity for Namibia, and Namcor is poised to seize the moment while maintaining a strong focus on sustainable energy.

KEY FOCUS

The upstream sector is a key focus and will drive other development factors for the company and the country.

The value of these developments is multifaceted:

• • Economic Growth: The oil and gas sector has the potential to significantly boost Namibia’s GDP.

Substantial revenue can be reinvested in the national economy, driving growth across various sectors.

• • Job Creation: Development of the Venus and Mopane fields will create numerous jobs, both directly within the oil and gas sector and indirectly in supporting industries.

This employment boost is crucial for economic stability and social development.

• • Energy Security: By tapping into its own oil and gas reserves, Namibia can reduce its dependence on imported energy, enhancing national energy security. Self-sufficiency is vital for the country’s long-term stability and economic independence.
• • Investment Attraction: Successful upstream exploration and production can attract further international investment.

This influx of capital can spur additional exploration activities, infrastructure development, and technological advancements, positioning Namibia as a key player in the global energy market.

• • Funding for Renewable Energy: Revenue from fossil fuel production can be strategically allocated to fund renewable energy projects.
  • This ensures a balanced energy transition, where fossil fuels support the development of sustainable energy technologies, fostering a holistic growth model.
• • Infrastructure Development: The oil and gas industry requires significant infrastructure, which can have spillover benefits for other sectors.

Improved infrastructure supports overall economic development, enhances connectivity and facilitates access to remote areas.

SYNTHETIC FUELS

In addition, Namcor is exploring the potential of synthetic fuels.

Synthetic fuels offer a promising avenue for reducing carbon emissions while leveraging existing infrastructure.

By focusing on creating a globally competitive synthetic fuels industry, we aim to position Namibia as a leader in sustainable energy solutions.

Synthetic fuels can be produced using renewable energy, thereby offering a carbon-neutral alternative to conventional fossil fuels.

This aligns with Namcor’s goal of achieving carbon neutrality while maintaining energy security and economic growth.

This will be outlined in our 15-year strategic master plan which will serve as a blueprint for our future.

ADAPTING TO THE FUTURE

We are adapting to future energy and market trends to ensure long-term growth and to prepare for fluctuations in the global energy sector.

Namcor’s vision of a Paced, Funded, and Just energy transition underscores our commitment to a future where economic growth and environmental stewardship go hand in hand.

Through leveraging the strengths of both fossil fuels and sustainable energy, we are not only securing Namibia’s energy future, but are also setting a benchmark for balanced and inclusive growth in the global energy landscape.

Careful and responsible development of these resources will ensure that Namibia can achieve its economic and environmental goals, driving a prosperous and sustainable future.

• – Ebson Uanguta is currently the acting managing director at Namcor. He is also a deputy governor of the Bank of Namibia. This article is written in his personal capacity.