Natalie Nyathi
Namibia’s goal to become a leader in green hydrogen has taken a hit with the news that German power company RWE is pulling out of the $10 billion Hyphen green ammonia project.
RWE had signed a preliminary agreement with Hyphen to buy about 300,000 metric tons of ammonia each year, starting in 2027. Ammonia is mainly used in fertilizer production and can be made more environmentally friendly by using hydrogen produced from water with renewable energy. However, RWE has now said it will not continue with any projects in Namibia, citing changes in the market.
A spokesperson for Hyphen explained that RWE had only planned to explore a potential deal and had not signed a final contract.
The project has also faced criticism from indigenous rights groups, who argue that it would take place on ancestral Nama land within a national park. Andrea Pietrafesa, a legal advisor, supported RWE’s decision, saying that it should not support projects that violate indigenous rights. RWE stated that its decision was not related to these concerns.
This withdrawal is a challenge for Namibia, especially under President Netumbo Nandi-Ndaitwah, the country’s first female leader. The government is working to regain its upper-middle-income status and relies heavily on green hydrogen and renewable energy for growth. The Hyphen project was key to this plan, promising to create 15,000 jobs during construction and 3,000 permanent positions, with a goal of generating 30,000 green jobs by 2030.
Delaying or scaling back the project could have serious effects in a country where unemployment is already high. Without a major partner like RWE, it may be harder to attract financing and secure agreements, which could hurt investor confidence in Namibia’s hydrogen plans.
Despite this setback, Namibia has made some progress in the green hydrogen sector. The HyIron’s Oshivela facility began producing green hydrogen in March 2025, using a 12MW electrolyzer, the largest of its kind in Southern Africa. The Namibian government also has a partnership with the European Union to support its green hydrogen development.