Namibia: new funding for renewable ammonia production

African Development Bank funding for Hyphen’s Namibia project

Two Namibian renewable ammonia project developers – Hyphen Hydrogen Energy and Zhero Molecules Walvis Bay – have received funding from government and institutional sources.

Namibia-based renewable ammonia developer Hyphen Hydrogen Energy has received a $10 million loan allocation by the African Development Bank via its Sustainable Energy Fund for Africa (SEFA). The funding will support FEED studies for solar and wind generation, battery energy storage systems, and electrolyser capacity and desalination infrastructure, as part of Hyphen’s mega-scale renewable ammonia project in the Southwest African country.

Located in the Southern town of Lüderitz, Hyphen’s renewable ammonia project aims to leverage the country’s globally competitive wind and solar energy resources. Phase one of the project will feature 3.75 GW of renewable energy generation, battery storage, 1.5 GW of electrolyser capacity, and complementary infrastructure including desalination facilities, pipelines, transmission lines, and port facilities.

On completion, the project will produce an estimated 2 million tons per year of renewable ammonia for export. By deploying about 7.5 GW of renewable energy generation capacity (over 10 times Namibia’s current installed capacity), Hyphen’s project will avert about 5 million tons of annual CO2 emissions. Its desalination project will supply 3 million litres of clean water per day to the water-scarce region of Lüderitz.

As part of a 40-year concession agreement, the project is also expected to deliver local socio-economic development in the country. It will generate an estimated 15,000 construction jobs and 3,000 permanent jobs, with 90% ringfenced for Namibians and 20% targeting youths.

SEFA is the ADB’s renewable energy focussed multi-donor special fund which provides “catalytic finance to unlock private sector investments” and “technical assistance and concessional finance instruments to remove market barriers, build a robust projects pipeline, and improve the risk-return profile of individual investments.”

This is about far more than energy infrastructure. This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet. Namibia is showing the world that Africa is not just participating in the green economy —we are defining it.

Moono Mupotola, ADB Country Manager for Namibia and Deputy Director General for Southern Africa, in her organisation’s official press release, 9 December 2025

The African Development Bank’s approval of this pre-investment facility represents a strong vote of confidence in Hyphen’s project and in the broad ambitions of Namibia to develop one of the world’s most transformative green hydrogen projects.

We are deeply appreciative of the African Development Bank for partnering with us in the development of this transformative project.  This facility, which will be utilised to partially fund the technical design phase of the project on our journey to the final investment decision.

Marco Raffinetti, CEO, Hyphen Hydrogen Energy, in the ADB’s official press release, 9 December 2025

SDG Namibia One Fund & Zhero Europe: development funding for industrial-scale renewable ammonia project in Walvis Bay

SDG Namibia One Fund, Namibia’s dedicated energy transition and renewable hydrogen infrastructure fund, has signed a Development Funding Agreement with Zhero Europe, a clean energy projects developer, for the development of the Zhero Molecules Walvis Bay Project. The industrial-scale renewable ammonia facility will be located near Walvis Bay in the Erongo Region on Namibia’s central coast and will produce 500,000 tons per year of renewable ammonia when operational.

The project will be powered by 3 GW of solar PV coupled with 2.2 GWh of battery storage. The generated capacity will power about 1.6 GW electrolyser capacity. Also part of the project will be 110 km of new transmission infrastructure and a desalination plant for water supply. The ammonia produced will target the fertiliser, maritime fuels and industrial feedstocks sectors.

SDG Namibia One Fund is managed by Climate Fund Managers (CFM), Dutch development finance institution Invest International, and the Environmental Investment Fund of Namibia (EIF). The fund has committed up to $5.15 million in development funding to support Zhero’s development and feasibility activities ahead of FID (which is targeted for 2025), with commercial operations expected in 2030.

The project will generate an estimated 6,000 jobs in the construction phase and about 500 permanent roles, as well as opportunities for local businesses and service providers.

Zhero’s project aligns strongly with Namibia’s ambition to build a competitive green hydrogen and ammonia industry, as well as with the mandate of our SDG Namibia One Fund. The site benefits from exceptional solar resources, ample land and direct access to deep-water export infrastructure at Walvis Bay, making it well-suited for industrial-scale green ammonia production. Through its blended finance structure, SDG Namibia One is providing early-stage development capital alongside Zhero needed to de-risk the project and prepare it for financial close, creating the conditions for private capital to invest at scale in the construction phase. We look forward to working with Zhero to bring this important project from development, through construction and into operation.

Darron Johnson, Regional Head of Africa at Climate Fund Managers, in his organisation’s official press release, 19 December 2025

This development funding from SDG Namibia One will be additive to our own development funding investment. Given the deep understanding of the Namibian ecosystem that the team at the Fund bring and the blended-finance model they can augment, we very much regard this investment as pivotal to the success of this venture. Namibia has the natural resources, strategic location and national vision to become a global leader in green ammonia and hydrogen. With this support, we are strengthening our ability to deliver a world-class facility that can attract long-term investment, create economic opportunities for the country and contribute to global decarbonisation efforts.

Paolo Gallieri, Chief Operating Officer at Zhero, in CFM’s official press release, 19 December 2025