The Namibian Government will sign a feasibility and implementation agreement (FIA) with green hydrogen development company Hyphen Hydrogen Energy for the country’s $10 billion green hydrogen project, set to be located in the Namib Desert’s Tsau//Khaeb National Park.
Expected to be signed on Friday May 26, the deal represents the next phase of the large-scale development and outlines offtake terms that will see Namibian green hydrogen exported to Europe.
Detailing the process under which the project will be developed, the FIA provides clarity regarding the roles and responsibilities of both Hyphen, as the project developer, and the Government of Namibia. Specifically, Hyphen will be responsible for the technical, financial, environmental, social and commercial delivery of the project, and thereafter its implementation pending final approval by the Government.
Both the Namibian Government and Hyphen consider the FIA to represent a benchmark for the development of sustainable and equitable green hydrogen projects, and, according to Namibian President Hage Geingob, “On Friday…we kickstart a process that has the potential to transform the lives of many in our country, the region, and indeed, the world.”
“The agreement between the Government of the Republic of Namibia and Hyphen signifies an exciting chapter for Namibia’s growth trajectory. We wish to thank all of our development partners including the European Union Commission for the unwavering support that Namibia has enjoyed so far,” President Geingob continued.
The Namibian Government will assume responsibility of “ensuring that the country is equipped with the necessary legal, fiscal and regulatory environment to enable the implementation of the project,” Hyphen said in a statement.
The FIA is separated into five stages, with progression dependent on the completion of prerequisite phases. The stages include the preliminary phase, feasibility phase, validation phase, financing and construction phase and finally the operation phase, at which point up to two million tons of green ammonia will be produced for regional and global markets.
Source: Energy Capital Power
