Namibia is moving beyond producing green hydrogen, focusing on using the resource to build industries, create jobs and increase local manufacturing as the government pushes to transform the country’s economy.
Speaking at the African Green Industries Summit last week in Swakopmund, Green Industries Council chairperson and National Planning Commission director general Ambassador Kaire Mbuende said the country’s green hydrogen programme has entered a new phase, where the focus is no longer only on producing hydrogen but on using it to support industrial development.
“The issue before us is therefore no longer only how much green hydrogen we can produce. It is what we can manufacture with it, the minerals we can beneficiate, the industries we can decarbonise and the infrastructure we can develop,” Mbuende said.
He added that, at the end of the day, it is a question of how many Namibian businesses and workers can participate in the resulting value chains.
Namibia launched its Green Hydrogen and Derivatives Strategy in 2022 to position itself as a global producer of green hydrogen and green ammonia.
The country’s ambitions are reflected in NDP6, which aims to increase the contribution of secondary industries to 25% of gross domestic product (GDP) by 2030. Manufacturing is expected to increase from 10.6% to 18% of GDP, while manufactured products should account for 60% of Namibia’s goods exports.
The government has also set targets of producing 1.3 million tonnes of green ammonia annually, two million tonnes of direct-reduced iron, generating 143 gigawatt-hours of green baseload electricity and creating 30 000 green hydrogen-related jobs by 2030. The sector is also expected to achieve at least 30% local content and participation.
Mbuende said these targets are about creating industries that keep more value in Namibia.
He highlighted the HyIron Oshivela project, which is producing low-carbon iron using renewable energy and green hydrogen, as an example of how the country can benefit from its mineral resources. He also pointed to the Daures Green Hydrogen Village, where green hydrogen is being integrated into agriculture, fertiliser production, skills development and rural enterprise.
“Our development ambition goes hand in hand with environmental responsibility. Namibia should not be forced to choose between development and conservation. That is a false choice,” he said.
Mbuende said building local skills will be key to ensuring Namibians benefit from the emerging industry.
“Local communities must not simply host industrial projects, they must participate in and benefit from them,” he said.
To support the country’s industrial ambitions, the government is finalising its Sectoral Transformation Investment Plan under the Climate Investment Funds Industry Decarbonisation Programme. The plan is expected to unlock up to US$250 million in concessional finance for projects aimed at expanding green industries and reducing emissions from hard-to-abate sectors.
Namibia’s green hydrogen programme has attracted growing international interest because of the country’s world-class solar and wind resources, strategic ports and rich mineral deposits. Several projects are already under development, including the Hyphen Hydrogen project in the Tsau
//Khaeb National Park, HyIron Oshivela, Cleanergy Solutions at Walvis Bay and the Daures Green Hydrogen Village.
Together, they are expected to strengthen Namibia’s industrial base while attracting investment and creating new business opportunities.
“We need the private sector, financiers, development partners, training institutions, communities, entrepreneurs, women and young people at the table and in the value chains,” he said.
He said Africa’s green transition should be measured not only by the amount of clean energy produced but also by the industries, businesses and jobs it creates.
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