Namibia secures N$940m for green hydrogen projects
The Green Climate Fund will channel US$56 million to support industrial decarbonisation and green ammonia production.
Namibia has secured N$940 million (US$56 million) in climate financing from the Green Climate Fund (GCF) to support green hydrogen and associated industrial projects. The funding, part of US$140 million approved for Climate Investor Three, will be channelled through the SDG Namibia One Fund. This financing aims to support early-stage project development and construction phases for green hydrogen production, green ammonia, and green methanol.
The financing will be managed by Namibia Energy Transition Fund Managers, a partnership including the Environmental Investment Fund of Namibia (EIF). EIF chief executive Benedict Libanda stated the financing addresses capital and technical needs for Namibia’s green hydrogen industry, aiming to increase local participation. The SDG Namibia One Fund has already secured development funding agreements for four projects, including the Hyphen green hydrogen project and HyIron’s green iron project.
The wider Southern African facility aims to mobilise US$1.2 billion across Namibia and South Africa, supporting 30 to 40 projects and installing approximately 1.52 gigawatts of renewable energy capacity. This blended finance model combines public and private capital to reduce investment risks and attract commercial investors. Climate Investor Three has a global fundraising target of US$1.2 billion.
Why it mattersNamibian businesses and industries will receive financial support to develop green hydrogen production and associated downstream industries, aiding decarbonisation efforts.