Louder calls for locals to benefit from green hydrogen

The Environmental Lawyers Network of Namibia has urged the government to swiftly establish strong legal frameworks to ensure significant benefits for Namibians from the country’s ambitious green hydrogen plans.

Vice president of the organisation Stephanie Busch spoke to Desert Radio last week, and said without comprehensive policies in place, the benefits of these plans could easily bypass the country’s citizens.

“At the moment, there is no legal framework. There are ways to ensure Namibians benefit and it is through legislation,” Busch said.

Busch said the incoming local content policy and sovereign wealth fund bill are key approaches to ensuring that Namibians are at the forefront of green hydrogen developments.

According to the mines and energy ministry, the local content will prioritise the inclusion of local expertise, labour and materials to not only create employment opportunities, but also foster the transfer of technological knowledge and promote economic growth.

It would also prevent the domination of the industry by foreign entities that might not have Namibian interests at heart.

Meanwhile, the proposed sovereign wealth fund bill aims to establish two funds – a visionary intergenerational fund modelled after Norway’s and a stabilisation fund.

Busch said the intergenerational fund would ensure that the benefits from green hydrogen projects are prudently managed and preserved for future generations, enabling sustainable development and economic security.

She said the stabilisation fund, on the other hand, would safeguard the national budget during periods of economic uncertainty, ensuring essential public services remain adequately funded.

“Those are the ways legislation can assist in ensuring that the green hydrogen industry benefits Namibians,” Busch said.

During a workshop discussing the draft local content policy last month, mines and energy minister Tom Alweendo said he recognises the potential of a local content policy to drive broad-based economic development.

However, he said he was cognisant of the mixed outcomes experienced by countries worldwide in implementing such policies.

He said international companies participating in the emerging energy sector would need to be fully conversant with the local content policy.

To ensure effective implementation, Alweendo said there is a need for an efficient monitoring and evaluation system.

“Without an effective monitoring and evaluation system, we will not know if the policy is delivering on its objectives. We will not know when we need to modify the policy,” Alweendo said.

Meanwhile, the country’s green hydrogen plans are gaining momentum as various projects begin to materialise. On Monday, the German government announced funding of N$100 million to support the local authority of Lüderitz in fast-tracking land delivery.

This investment is a significant step towards facilitating the Hyphen green hydrogen project, which has garnered considerable attention.

The funding from the German government would be used to expand the town land of Lüderitz and provide serviced plots. The expansion is deemed necessary due to the expected surge in demand for housing in the harbour town, driven by the ambitious Hyphen project.

This project alone has the potential to create up to 15 000 job opportunities, necessitating adequate housing solutions for the workforce in the town.