Namibia is set to build Africa’s first green hydrogen power plant, aiming to boost clean energy generation and reduce reliance on imported electricity.
Experts consider green hydrogen a revolutionary solution for renewable, clean energy, though it is still early days for new technologies.
Electricity can be produced from hydrogen through the use of fuel cells. In a fuel cell, the hydrogen is combined with oxygen in the air to generate an electric current. This does not emit any greenhouse gases — just heat and water.
HDF Energy, an independent French power producer, global pioneer in hydrogen power plants and high-power fuel cell manufacturer, recently launched operations in Namibia.
The centrepiece of HDF’s investment to support Namibia’s energy ambitions is Renewstable Swakopmund, a green hydrogen plant consisting of an 85MW solar photovoltaic power project.
Once operational, the project promises to enhance local clean electricity generation, 24 hours a day, seven days a week, and improve grid-supporting services, directly contributing to the security of electricity supply in Namibia.
Renewstable Swakopmund is being developed within the municipal boundaries of Swakopmund in the Erongo region. It is one of five planned green hydrogen developments in what will be known as the Central Green Hydrogen Valley.
The Swakopmund project is owned by Hydrogène de France (HDF) with headquarters in Bordeaux. It is designed to generate 142GW hours of clean electricity annually, enough to power about 142,000 households.
The project, which will cover 400ha, will integrate solar energy, battery storage and green hydrogen technology.
“Clean energy will also come with ancillary grid services. This will be meeting nearly 10% of Namibia’s power needs,” says HDF Energy Namibia business and project developer Tashiya Walenga. She is also leading HDF activities in Zambia and Angola.
As a member of the African Hydrogen Partnership, HDF Energy is expanding its footprint, working on a number of multimillion-euro projects globally. HDF has a project pipeline worth more than €5bn.
“The CEOG project in French Guiana is under construction and nearing completion, with a total investment of €170m,” says Walenga. “We also have developments in Barbados, Indonesia and Mexico.”
HDF Energy has committed to supporting Namibia’s efforts to boost electricity generation capacity from 624MW in 2020 to 879MW by 2025.
Walenga says the proposed plant will contribute to the energy mix by generating electricity from green hydrogen, which can be stored, aiming to maintain current energy mix prices.
“What sets our plant apart is that, in addition to generating energy, we also provide ancillary grid services through our technology. These services enable our plant to control and regulate Namibia’s grid on behalf of NamPower, ensuring efficient and reliable energy management. If our power grid fails, this technology can restore it.
“The N$4.5bn investment is backed mainly by foreign direct investment, along with owner’s equity and nonrecourse funding from development finance institutions and commercial banks.”
Walenga says the company must consider not only intermittent renewable energies, but also energy sources that can stabilise the grid. “The grid cannot rely solely on green or renewable energies. We need a reliable baseload plant that is flexible,” she says.
Baseload energy represents the minimum level of electricity needed to satisfy the steady demand for power within a grid or system.
“While scaling up presents its challenges, I’m excited to focus on deploying plants that will grant Namibia 70% independence and enhance our local generation capacity to provide 24/7 reliable, stable and zero-carbon baseload electricity,” says Walenga.
The Swakopmund project will be fully integrated with renewable energy resources and hydrogen storage, using the minimum water through a closed-loop system, eliminating fossil fuels, chemicals and toxic substances.
The Renewstable Swakopmund power plant is expected to enhance the self-sufficiency of the national grid, which has historically depended on neighbouring countries, mostly South Africa, for supply stability.
“Swakopmund was one of the load centres that lacked a power-generation plant, making it a logical choice for our project,” says Walenga, who notes the importance of the town as a tourism centre. “We aimed to create value for the municipality by providing retrofitted municipal buses that would operate on the plant’s excess green hydrogen fuel. This initiative is expected to significantly boost the tourism industry in Swakopmund.”
Swakopmund mayor Blasius !Goraseb adds: "In collaboration with the UN World Food Programme, HDF Energy is preparing block farms and gardens for communities at Swakopmund’s informal settlements.”
He says these initiatives aim to provide residents with opportunities to grow and sell vegetables, promoting food security and local economic development.
Renewstable Swakopmund is being developed in partnership with the EU. The European Investment Bank has provided significant grant support for this initiative, a commitment formalised in 2022 at the COP27 global climate summit with European Commission president Ursula von der Leyen, former European Investment Bank president Werner Hoyer and former Namibian president the late Hage Geingob.
“Additionally, we have received grant support from the UK,” says Walenga. “Our strategic investors include the international companies Rubis and Teréga, key players in the global energy sector.” As for the timeline, Walenga says HDF Energy is now collaborating with NamPower to complete operational strategies.
“We are in the final stages of negotiating the heads of commercial terms. The last step before investment and construction is securing the commercial agreement itself, which we hope to finalise by early next year,” she says.
Walenga says construction should commence by early 2026, taking 24 months, with full operations set for 2028. The project is expected to create about 2,000 jobs, including at least 600 during construction and operation.
The primary objective has been to decrease Namibia’s reliance on imported electricity, presently more than 60% of its energy supply. “Additionally, we are investigating the use of hydrogen for rail and maritime transport, as well as the production of green ammonia for export,” says Walenga.
She confirms that the company has begun exploring the market for green ammonia production in the Central Green Hydrogen Valley for the export market.
“We are in the pre-feasibility stage of this project. To effectively support a larger share of renewable energy, we need the right technologies and infrastructure to stabilise the power grid,” she says.
The project supports Namibia’s broader objective of gradual transitioning to a low-carbon energy system, one where renewables such as solar, wind and hydropower become the backbone of our energy mix
— James Mnyupe
Hybrid technology plays a vital role in addressing these challenges by providing a consistent power supply around the clock. It stores energy when production is low, helping to stabilise the grid and allowing for more renewable energy sources to be integrated. This stability is essential for industrialisation and development.
But one of the challenges is the high cost of advanced technology. This makes it difficult to establish operational plants quickly.
The costs of these technologies have not decreased as had been hoped but the company is optimistic that prices will drop in the near future, allowing it to scale up more effectively.
James Mnyupe, Namibia’s green hydrogen commissioner, says: “The HDF green hydrogen project is a strategic addition to Namibia’s energy landscape, particularly due to its potential to contribute clean baseload electricity to the national grid. This is critical for enhancing energy security and gradually reducing our dependence on imported electricity.
“Over time, local generation of power through such projects can also help ease the cost burden on consumers. Beyond affordability and reliability, the project supports Namibia’s broader objective of gradual transitioning to a low-carbon energy system, one where renewables such as solar, wind and hydropower become the backbone of our energy mix, and possibly replacing less sustainable sources such as coal.”
The project is seen as a potential model for other African nations aiming to sustainably use their renewable resources. Ultimately, Namibia’s green hydrogen strategy aims to leverage the country’s abundant solar and wind energy resources to produce competitively priced green hydrogen. The initiative intends to position Namibia as a global leader in the hydrogen sector.
The strategy aligns with Namibia’s commitment to the Paris Agreement on climate change, with the goal of achieving net zero emissions by 2050.
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