Windhoek Namibia, Monday 19th June 2023: Today, the Government of the Republic of Namibia (Government) is pleased to announce the conclusion of agreements for the establishment and management of Nam-H2 Fund Managers, a new infrastructure asset manager that will incubate the synthetic fuels sector in Namibia.
The new venture marks the exercise of Government’s option to take up a 24% interest in the first awarded project being developed by Hyphen Hydrogen Energy (Hyphen), and the signature of a memorandum of understanding (MOU) between a coalition of Namibian and Dutch partners. With the conclusion of these milestones, the Government has taken yet another significant step towards realising the potential of the transformative green hydrogen sector for the benefit of all Namibians as envisaged in the Harambee Prosperity Plan II (HPPII)[1].
Government, delivering on the vision of HPPII and the Southern Corridor Development Initiative (SCDI), the country’s first hydrogen valley, recognised the need to strategically mobilise billions of Namibian dollars of funding in a manner that does not place additional fiscal burdens on the country. In raising the necessary funding, Government has sought partners to assist in its realisation and has developed relationships with the European Union (EU) as a block and the countries of the Netherlands and Germany specifically. These strategic relationships have been driven by the significant alignment between the aspirations of HPPII and the objectives of the EU, the Netherlands and Germany in driving the energy transition.
Nam-H2 Fund Managers is an infrastructure asset manager that will be established to run SDG Nambia One, a bespoke blended finance fund co-designed by the Namibian and Dutch Governments to enable the incubation of Namibia’s Synthetic Fuels Sector. SDG Namibia One will look to raise money from local institutional investors and investors from around the world to develop Namibian green hydrogen projects and related infrastructure. The establishment of SDG Namibia One will see Namibia’s Environment Investment Fund (EIF) partnering with two Dutch organisations, Climate Fund Managers (CFM) and Invest International. 100% of the initial funding of €40 million (~N$850 million) is being provided as grant funding by Invest International and will be housed by the Fund. The European Investment Bank and the Government concluded a letter of intent at COP27 for the provision of €500 million, a portion of which is to be designated for investment via SDG Namibia One.
With agreements for the establishment of SDG Namibia One concluded, today Government has issued Hyphen with its Official Notice indicating the exercise of Government’s right to take up a 24% equity interest in the project at historic cost.
“This marks yet another key progressive milestone in the development of a local and transformative Synthetic Fuels Sector!” exclaimed the Minister of Finance, Ipumbu Shiimi.
Joost Oorthuizen added, “We are excited at the prospects that this new partnership between our two countries will unlock for our respective people.”
Climate Fund Managers CEO Andrew Johnstone noted: “CFM’s expertise in raising and deploying blended finance infrastructure funds compliments the Namibian and Dutch Government’s ambitions of mobilizing fit-for-purpose capital to drive economic development in Namibia and combat climate change globally. We are also humbled to have been given the mandate to build capacity in the Namibian public sector.”
The EIF CEO, Benedict Libanda said: “Global partnership is of paramount importance to advance green hydrogen development, especially considering the nascent nature of the sector. Collaboration among countries, industry stakeholders, and international players is vital to overcome technological challenges, scale up production, and establish a global sustainable hydrogen economy. By joining forces, we can pool resources, share knowledge, and accelerate the transition towards a low-carbon future powered by green hydrogen.”
[1] HPPII is a Government action plan for the period 2021-2025 to prioritise the implementation of targeted policy programmes in order to enhance service delivery, contribute to economic recovery and engender inclusive growth. HPPII aims to ensure Namibia is poised to respond to domestic socioeconomic challenges and global opportunities, during and after the COVID-19 pandemic.
