NAMIBIA - Project Preparation Facility for Hyphen Green Hydrogen Energy (PTy) Limited

Hyphen Hydrogen Energy (Pty) Limited is developing a vertically integrated green ammonia project in Namibia, with capacity to produce about 2 million tonnes per annum (Mtpa). Hyphen is a special purpose vehicle (SPV) established in Namibia to implement the Project, with ENERTRAG SE, Nicholas Holdings Limited and the GRN as the beneficial owners. The Project will be implemented in two phases, with production capacity of 1Mtpa in each phase. The PhaseI scope includes wind and solar energy generation (3.5GW), electrolyser capacity (1.5GW), pipelines and associated storage facilities, green ammonia production, and common user infrastructure (CUI) -e.g.pipelines, transmission lines and substations ; as well as port facilities. Hyphen was selected as the preferred bidder by the Government of the Republic of Namibia (GRN) after a competitive bidding process in 2021. The Feasibility and Implementation Agreement (FIA)-a 40-year concession agreement that stipulates the obligations and responsibilities of Hyphen and the GRN in the development, implementation and operation of the Project-was signed in May 2023. The FIA includes a Socio-Economic Development (SED) Framework to promote employment, skills development, local value chains and supplementary infrastructure. The Bank will support Hyphen through a SEFA-funded project preparation facility, covering Front-End Engineering Design (FEED) studies for solar and wind generation; battery energy storage systems (BESS); electrolyser capacity; and desalination infrastructure. Hyphen will be responsible for the implementation of SEFA-funded FEED activities in line with the terms of the project preparation facility agreementand the Bank’s Procurement Policy.