Staff Reporter
BECAUSE of the country’s excellent wind and solar resources, particularly in the South, Namibia is among the top two countries that can produce the cheapest Green Hydrogen and electricity in the world, according to John Titus, the Ministry of Mines and Energy’s Director of Energy.
Titus shared this during the ministry’s stakeholder engagement, where he explained that the only country that can, at this stage, produce cheaper energy than Namibia is Chile in South America. He said that Namibia’s cost of production for Green Hydrogen is USD1,5 per kilogram (kg). For comparison’s sake, he added that Germany’s cost of production for Green Hydrogen would be USD2,3/kg.
The excellent wind and sun resources, he said, also makes Namibia quite attractive in the eyes of the investors.
“That’s why countries are flocking to Namibia. We are the most beautiful lady in the eyes of the international community. Everybody wants to marry Namibia. The queue is extremely long and its difficult to choose now who do we engage, who don’t we engage,” he said.
Namibia, Titus said, is currently negotiating with the German company, HYPHEN, to develop the first large-scale Hydrogen/Green Ammonia project in Namibia. This came after the company was identified as a preferred bidder, after the government issued a request for proposals to develop a giga-scale project in the south-western parts of the country, in Tsau //Khaeb National Park.
He explained that HYPHEN wants to produce 5 Gigawatt of renewable energy of electricity by 2030.
“To put this in perspective, Namibia’s current peak demand in terms of electricity is just over 600 Megawatts or 0,6 Gigawatt. So, this scale is about ten times the amount of electricity that Namibia currently needs,” Titus said.
He explained that – based on HYPHEN’s bid – this project is expected to make use of at least 30% of Small-and-Medium Enterprises (SMEs) and local companies and 20% youth participation. He added that the company’s bid further indicates that the average wage would be N$152 000 at the Cost to Company and the land rentals during their tenure will amount to N$300 000 per year. In addition, Titus said, the company also intends to employ 15 000 full-time employees, of which 90% will be Namibians.
However, according to Titus, the potential benefits that Green Hydrogen can bring to the country goes beyond HYPHEN. The Green Hydrogen industry, as a whole, presents many development opportunities ranging from employment to improved infrastructure.
“There’s other associated enabling infrastructure like housing. If we talk about Lüderitz that port needs to be upgraded or extended. So, there’s also opportunity in terms of associated infrastructure. If we develop the Kunene area, there will be a port required, roads required,” he added.
This, he emphasised, will have spin-off effects and further contribute to the development of the country.
File photo for illustrative purposes only.
