Hyphen Hydrogen Project in Namibia Faces Delays and Uncertainty
The Hyphen Hydrogen project in Namibia is facing delays and uncertainty, with a major potential buyer pulling out and the project's timeline slipping. The ambitious plan aims to generate hydrogen using wind and solar energy, with an expected investment of over ten billion US dollars.
Currently, only wind measurement masts and measuring buoys are in place at the planned site. The final investment decision is scheduled for the end of 2026. The project, a joint venture between the Namibian state, Enertrag, and Nicholas Holdings, initially planned to have 50% of its capacities built by 2030. However, this target is now unattainable.
Energy giant RWE had agreed to buy up to 300,000 tons of green ammonia per year from the project starting in 2027. This deal, however, fell through by September 2025, with RWE citing slower-than-expected demand from industry for 'green hydrogen'. The new buyer or buyers have not been announced yet.
The project aims to produce and ship around one million tonnes of ammonia per year, equivalent to around 180,000 tonnes of hydrogen. The German government's planned hydrogen acceleration law, while aiming to facilitate infrastructure expansion, does not directly address the high supply costs of renewable hydrogen.
The Hyphen Hydrogen project in Namibia is still in its early stages, with a final investment decision pending until the end of 2026. The project's timeline has slipped, and a major potential buyer, RWE, has withdrawn due to slow demand for 'green hydrogen'. The future of the project and its buyers remains uncertain.
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