Namibia is focusing on exporting all its renewable hydrogen production, according to a report by the International Energy Agency (IEA) on Renewable Energy Opportunities in Namibia.
“Although Namibia currently lacks a domestic market for renewable hydrogen, the country is actively exploring options to reserve a portion of future production for local use. For now, however, all output is intended for export,” the report highlights.
The study identifies South Africa as the most cost-effective export destination, utilizing a pipeline system.
“Compared to international exporters outside Africa, who would rely on costlier transport methods like shipping, pipeline transport offers a more economical solution,” the report notes.
Transporting hydrogen via pipelines is an established technology, with approximately 4,600 kilometers of hydrogen pipelines currently in use worldwide, predominantly in Europe and the United States.
However, Namibia must overcome significant hurdles, including substantial upfront investments in infrastructure and workforce training, to enable hydrogen transport.
“The construction of a transnational pipeline requires addressing various geopolitical challenges, harmonizing coordination among numerous stakeholders, and allowing for the lengthy implementation process,” the report emphasizes.
As of July, Namibia has allocated N$380 million to consultancy services, feasibility studies, and travel allowances associated with its green hydrogen initiatives.
These projects include Hyphen Hydrogen Energy, the Dâures Green Hydrogen Village, Cleanergy Solutions, HyRail, Hydrogène de France (HDF), HyIron, and Zhero.
European government-linked entities have collectively pledged N$1.7 billion to support Namibia’s hydrogen projects.
The Netherlands’ Invest International made the largest commitment, contributing N$835 million.
Germany’s federal ministries for education and research and for economic affairs and climate action pledged N$777 million and N$87 million, respectively, while the European Union offered N$23 million.
