Govt needs help to buy 24% green hydrogen stake

After much uncertainty, the Namibian government has taken up an offer of a 24%-stake in Hyphen Hydrogen Energy, but says it needs investor financing.

This would be realised through a proposed ‘SDG Namibia One Fund’, it says.

Green hydrogen commissioner James Mynupe yesterday announced this as he was unpacking

Namibia’s green hydrogen ambitions to Danish and Dutch prime ministers Mette Frederiksen and Mark Rutte, respectively.

Mnyupe revealed that the SDG Namibia One Fund would secure 40 million euros through Dutch company Invest International.

The fund would be used to acquire shares in Hyphen’s green hydrogen project and various other projects.

“It is through this funding that we will actually buy the equity stake in the Hyphen project. This was a very strategic intervention,” Mnyupe said.

The initiative is set to be spearheaded by Climate Fund Managers, which is registered in The Netherlands, and the Environment Investment Fund of Namibia.

This comes after the government last month said it wants to explore various options for purchasing equity, including grant funding and concessional loans.

Mnyupe emphasised the importance of ensuring the economics of the project are highly promising before making any commitments.

SCEPTICAL AT FIRST

Hyphen Hydrogen Energy has offered to sell the Namibian government a 24%-stake in the development of the country’s first large-scale green hydrogen project.

However, the government has been sceptical about the financing needed to buy the stake.

Hyphen has been awarded preferred bidder status on 4 000 square kilometres of land in Tsau //Khaeb National Park for the development of the project.

This US$10-billion project would be developed in phases, at full development targeting 350 000 tonnes of green hydrogen production a year from 5GW of renewable generation capacity and a 3GW electrolyser.

EQUALS IN BUSINESS

Meanwhile, president Hage Geingob yesterday emphasised that the visiting prime ministers are equals in the bilateral relationship.

“I look forward to a partnership of equals. You just signed the Africa policy, and we are very clear there that we are in a partnership of equals.

“And our interest . . . you have to listen to us.

“We will be the ones to tell you what we want based on the fact that we will hold hands,” he told the European leadership.

The Danish prime minister yesterday said it is time to elevate African affairs through permanent membership of the United Nations Security Council and to strengthen the relationship between the African and European unions.

Frederiksen said most of the world’s international organisations and institutions were formed over 70 years ago, and are outdated.

She was responding to Geingob’s statement on Namibia’s governance being punished after it was classified as an upper middle-income country.

“We need to have a discussion about the United Nations Security Council, the African perspective on multilateral institutions like the World Bank, and the International Monetary Fund,” the prime minister said.

This comes after African countries have made this call for decades.

The Danish prime minister said Denmark strongly supports the reform of the United Nations (UN) and other international bodies to include African countries.

“Is it easy to reform the UN? . . . Reforms in the UN are never easy, but nevertheless it is important,” she said.

Frederiksen said the UN Security Council should reflect the world of today.

Geingob has been one of the African presidents who emphasised this message at the UN General Assembly.

Frederiksen went on to say her country is in a hurry to use green energy.

“Of course it is quite natural that this is on top of our common agenda,” she said.

Currently, European countries are faced with an energy crisis after their reliance on Russia has been threatened.

Moreover, Namibia and The Netherlands are negotiating an agreement for citizens from both countries to travel visa-free.

These negotiations started earlier this month.

This was announced by Namibia’s ambassador to Belgium, The Netherlands and the European Union, Mekondjo Kaapanda-Girnus, yesterday.