RWE has signed a memorandum of understanding (MoU) with Hyphen Hydrogen Energy on the supply of green ammonia from Namibia.
RWE could offtake up to 300,000 tonnes per year of ammonia from Namibia, it said. The German utility is building an import terminal at Brunsbüttel, aiming for commissioning in 2026.
Hyphen is working on plans for a green hydrogen facility in Namibia. The company has said it could reach 350,000 tpy of green hydrogen by the end of the decade. It aims to begin construction in January 2025, with first phase starting by the end of 2026.
RWE reported Hyphen could be producing 1 million tpy of green ammonia by 2027.
Hyphen CEO Marco Raffinetti welcomed the deal with RWE. “This milestone underpins our ambitious targets to export green hydrogen globally from Namibia. By establishing strong connections with policymakers and offtakers across Europe, we are working with the government of Namibia to develop the industry which will spearhead southern Africa’s role in achieving regional and global decarbonisation goals.”
Green feedstocks are the “only way for many industries” in Germany to achieve climate targets, RWE Supply & Trading COO Ulf Kerstin said.
“In the long term, Germany’s demand for them will have to be met mainly through imports. That’s why we’re looking forward to progressing the offtake discussions with Hyphen – to bring green ammonia from Namibia to Germany,” Kerstin said.
Picking up support
The Hyphen project will use around 5-6 GW of renewable generation and 3 GW of electrolyser capacity. The plan carries an estimated price tag for two phases of $10 billion.
The European Investment Bank (EIB) signed a deal to finance early stages of the Hyphen plan during COP27.
Hyphen faces some challenges in pursuing its plans. Questions have been asked locally about steps the Namibian government is taking to support the project, including allegedly building housing for Hyphen employees.
Hyphen’s plans in Luderitz come as the town is undergoing dramatic growth, as it is also playing a role in plans for the two big offshore finds by TotalEnergies and Shell.
The hydrogen company had hoped to close its deal with the government at COP27 but missed this target. Hyphen is aiming to reach this by the end of the year.
