Namibia secures N$1 billion for green hydrogen projects
The Green Climate Fund approved US$56 million for early-stage development and construction financing.
Namibia will receive N$1 billion (US$56 million) from the Green Climate Fund (GCF) to develop green hydrogen and industrial decarbonisation projects. The funding, approved at the GCF’s 46th Board meeting in South Korea, will be channelled through the SDG Namibia One Fund. Of Namibia’s allocation, US$15 million will finance early-stage project development, and US$41 million will provide equity for construction.
This financing is part of the Southern African Industrial Decarbonisation Facility, which aims to mobilise US$1.2 billion across Namibia and South Africa. Environmental Investment Fund of Namibia CEO Benedict Libanda stated the funding will strengthen Namibia’s green hydrogen industry and support job creation. The SDG Namibia One Fund has already signed development funding agreements with four major projects, including Hyphen green hydrogen and HyIron’s Oshivela green iron.
The GCF funding targets between 30 and 40 industrial decarbonisation projects across Namibia and South Africa, aiming to install 1.52 gigawatts of renewable energy capacity. This initiative is expected to avoid an estimated 24.2 million tonnes of emissions. Catherine Koffman, GCF Regional Director for Africa, noted the facility is designed to unlock large-scale investment in challenging industries.
Why it mattersNamibian green hydrogen and industrial projects will receive climate financing to support development and construction.