National strategy
Namibia's green hydrogen plans were first set out in the Harambee Prosperity Plan II in March 2021. The country launched its Green Hydrogen Strategy in November 2022. A Green Hydrogen Council and an implementation office oversee the programme.
In November 2022, the European Union and Namibia signed a Memorandum of Understanding on sustainable raw materials and renewable hydrogen. An operational roadmap for 2023 to 2025 followed.
The Southern Corridor and the Hyphen project
The Southern Corridor Development Initiative is in the Tsau //Khaeb National Park in the south, near Lüderitz. Its first project is Hyphen Hydrogen Energy.
Hyphen signed a concession agreement with the Government of Namibia on 26 May 2023, with a 40-year term. The government holds the right to a 24% equity stake, taken up through the SDG Namibia One blended-finance vehicle.
Hyphen is described as a project of about US$10 billion, powered by wind and solar, targeting green ammonia for export. Public reports in September and October 2026 say first production is targeted for 2029 and the final investment decision has moved to the end of 2027. Financing, committed offtake, and infrastructure are named as the main open issues.
HyIron Oshivela: green iron
The HyIron Oshivela plant near Arandis, in the Erongo region, was inaugurated on 11 April 2025. It uses green hydrogen to make direct reduced iron. Germany's economy ministry supported it with about €13 million and reports a capacity of about 15,000 tonnes of green iron a year.
How Namibian green hydrogen projects are financed
Public sources show a mix of concessional and commercial funding: grants and loans from European partners, the European Investment Bank, Invest International, and the African Development Bank, alongside private developer equity.
As with any large project, the key to financial close is contracted revenue. That means long-term offtake agreements with creditworthy buyers for ammonia, hydrogen, or green iron, often in Europe or Asia.
Vektron Merchants is a marketing agency for energy, commodities, infrastructure financing and industrial firms. We find buyers, offtakers, lenders and partners for companies in these four industries, and we secure meetings with the people who sign.
Frequently asked questions
Is Namibia producing green hydrogen today?
Yes, at small scale. The HyIron Oshivela plant, inaugurated in April 2025, produces green hydrogen on site to make direct reduced iron. Large export projects such as Hyphen have not reached a final investment decision as of October 2026.
What is the biggest barrier for Namibian green hydrogen?
Public reporting points to financing, committed offtake from buyers, and shared infrastructure such as ports, water, and transmission.
Sources
- Hyphen Hydrogen Energy — Our story
- Hyphen Hydrogen Energy — The project
- The Namibian — Hyphen delay (6 October 2026)
- European Commission — EU–Namibia partnership (8 November 2022)
- EU Delegation to Namibia — HyIron inauguration
- German Federal Ministry for Economic Affairs — Oshivela/HyIron (11 April 2025)
- Online Guide to the Namibian Economy — Green hydrogen
Related
General information, not investment, legal or tax advice. Facts are from the public sources listed and may change.