Green industries: Namibia’s next industrial push
Namibia has made steady progress in developing its green hydrogen industry over the past year, moving from planning towards pilot production. Pilot plants have started operating, contracts for larger projects have been signed and international partnerships have been extended. Much of the sector, however, remains at an early stage, with final investment decisions still pending for the largest schemes.
The Cleanergy Solutions Hydrogen Dune facility at Walvis Bay has been reported as fully operational. The off-grid plant combines a 5MW solar park, a 5MW proton exchange membrane electrolyser and 5.9MWh of battery storage.
It produces green hydrogen for dual-fuel trucks, generators and other industrial and transport applications. CMB.TECH, which took full ownership of the project after Ohlthaver & List sold its stake in October 2025, has outlined plans to increase capacity in future phases. The site also includes a refuelling station and a hydrogen academy for training.
The facility was officially opened on 18 September 2025 by Prime Minister Elijah Ngurare, who was acting for President Netumbo Nandi-Ndaitwah. It has been described as Africa’s first fully integrated commercial green hydrogen plant.
Hydrogen is already being used in dual-fuel vehicles and generators, while plans have been announced for a hydrogen-powered locomotive and maritime applications by the end of 2026.
Progress has also been made on Namibia’s export ambitions.
In December 2025, the African Development Bank approved a $10m loan from its Sustainable Energy Fund for Africa to Hyphen Hydrogen Energy. The funding supports front-end engineering design studies covering solar and wind generation, battery storage, electrolysers and desalination for Hyphen’s large-scale green ammonia project near Lüderitz.
The project aims to produce about 2 million tonnes of green ammonia a year during its first phase.
In August 2025, Hyphen awarded a front-end engineering design and potential construction contract for the ammonia plant to China’s CNCEC and its subsidiary CC7. A final investment decision is expected later in 2026. The Namibian government holds a stake in Hyphen through the SDG Namibia One Fund.
Supporting work has continued alongside these projects.
Environmental and social assessments for the Southern Corridor Development Initiative have advanced, with draft documents released for public consultation. The Daures Green Hydrogen Village pilot, which links hydrogen production with agriculture and green fertiliser, has also progressed.
Skills development and local-content initiatives have expanded through related education and training programmes.
In May 2026, Namibia and the European Union extended their strategic partnership on green hydrogen, critical raw materials and infrastructure until 2030. Government officials have repeatedly identified green hydrogen as a key part of the country’s Sixth National Development Plan, with the sector expected to contribute to job creation and industrialisation.
But challenges remain.
Dedicated legislation and regulations for the sector are still being finalised, with completion targeted for the end of 2026. Financing for the largest projects has yet to be fully secured, while green ammonia remains more expensive to produce than conventional alternatives.
The government has nevertheless said it is prepared to advance projects while the regulatory framework is completed.
The past 13 months have seen Namibia move from green hydrogen planning to its first operating integrated facility, while engineering and financing work has advanced on larger export-oriented projects.
Further progress will depend on major investment decisions expected in the months ahead.
