Green hydrogen projects have different economic structures and requires a more intricate and dynamic approach. You will agree that all countries have the required resource: the sun, wind and land. Some are better than others, but the difference between Namibia, Mauretania, Australia and Chile, for example, are small. This means large hydrogen projects can be built in many countries around the world. As there is limited capacity globally to build these projects, there is a global race for projects to be first to market. Given the size of the green hydrogen opportunity, various governments in wealthier nations have in fact resorted to providing billions of US dollars in subsidies and tax credits to make those countries more attractive to developers in order to attract investment.
Namibia is rich in minerals, including diamonds, gold, zinc, copper, and uranium. The mining sector in Namibia has the potential for significant growth, and investment opportunities exist in a variety of areas.
Namibia’s mining sector is ranked among the top 10 in Africa for investment attractiveness by the Fraser Institute Annual Survey of Mining Companies in 2021. The mining industry is a significant contributor to the country’s economy, with minerals such as diamonds, gold, lead, zinc, tin, lithium, and uranium being mined. In 2021, the mining sector accounted for approximately 9.1% of Namibia’s gross domestic product (GDP), and is the second-largest sector in terms of foreign exchange earnings.
With major oil and gas discoveries in early 2022, Namibia is the most recent trailblazer among Africa’s frontier energy hotspots, as displayed by the Invest in Namibia Country Spotlight organized at African Energy Week 2022 in Cape Town last October.
“Why Namibia? When it comes to cost-effective green hydrogen, the curve is much steeper than the gas sector,” noted Jonathan Metcalfe, Business Case Development Manager for Hyphen. “As a result, we need to focus on the quality of the resource and bankability of the project. This project is a combination of a high quality resource in a very stable country, with high investability. Namibia is one of the world’s lowest cost producers. This means a much lower deployment of resources compared to normal hydrogen or energy developments.
(From Energy Capital & Power)