RWE Exits Namibia Green Hydrogen Project as European Demand Slows
Energy giant RWE has pulled out of a planned 'green hydrogen' project in Namibia, dealing a temporary blow to the ambitious scheme aiming to produce one million tons of 'green ammonia' for export annually by 2027. The withdrawal comes as Europe's demand for hydrogen has not grown as quickly as anticipated.
RWE was set to receive up to 300,000 tons of 'green ammonia' from the Namibian project annually from 2027. However, the slower-than-expected demand for hydrogen in Europe led the energy giant to withdraw from the project. Despite this setback, the project developer Hyphen Hydrogen Energy continues to seek committed buyers to move forward with the $10 billion green ammonia export plan.
Hydrogen is seen as a vital component in the global energy transition and climate protection. Germany, for instance, plans to import a significant portion of its hydrogen needs. The country aims to use hydrogen to generate electricity in new gas power plants and replace coke in steel production. Although Germany is not directly involved in the Namibian project, it maintains an energy partnership with the African nation.
RWE's withdrawal from the green hydrogen project in Namibia is a short-term setback but does not hinder the project's long-term development. The demand for green hydrogen and its derivatives in Europe and Asia is expected to rise in the long term. The project developer remains optimistic and continues to search for committed buyers to make the $10 billion green ammonia export plan a reality.
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