MEDIA RELEASE 

FOR IMMEDIATE RELEASE 

THE GOVERNMENT OF NAMIBIA AND DUTCH PARTNERS INK MEMORANDUM OF UNDERSTANDING 

Today, 20th June 2023, the Government of the Republic of Namibia (Government) is pleased to announce the conclusion of agreements for the establishment and management of Namibia’s sovereign wealth fund SDG Namibia One, the exercise of Government’s option to take up a 24% interest in the first awarded project being developed by 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). 

Government, delivering on the vision of HPPII and the first hydrogen valley to be developed, the Southern Corridor Development Initiative (SCDI), 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. 

The establishment of Namibia SDG Namibia One will see Namibia’s Environment Investment Fund partnering with two Dutch organisations, Climate Fund Managers and Invest International. 100% of the initial funding of €40 million (~N$850 million) is being provided as grant funding by Invest International. This vehicle 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 European Investment Bank and the Government concluded a letter of intent at COP27 for the raising of €500 million, a portion of which is to be proposed to be designated for investment via SDG Namibia One. 

SDG Namibia One, a EUR 1 billion blended financing vehicle for green hydrogen investment in Namibia. The platform is managed by Nam-H2 Fund Managers, a partnership between the Environmental Investment Fund of Namibia, Climate Fund Managers, and Invest International from Netherlands. SDG Namibia One will be jointly managed by a newly established management company, NH2 Fund Managers, which will comprise Namibia’s Environmental Investment Fund and Climate Fund Managers as shareholders. 

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 Oesterhuizen added, “We are excited at the prospects that this new partnership between our two countries will unlock for our respective people.” 

Climate Fund Manager Found Andrew Johnstone noted, “Climate Fund Managers is committed to bring to bear its full expertise to bear in order to meet the Namibian and Dutch Governments ambitions of mobilizing fit to 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. 

The signature of the MOU between Namport, the Port of Rotterdam, Hyphen, Gasunie, Nampower and Invest International represents the strategic intent of these partners to work together to realise the vision the SCDI. 

To be developed in the most environmentally sustainable way, the SCDI could ultimately span the length of the //Kharas Region with an annual production capacity of 3 million tonnes of green hydrogen. The development will initially be anchored by the Port of Lüderitz for access to international markets with the development of hydrogen pipelines to connect to South Africa in the medium to long term. The realisation of the SCDI will generate significant energy propelling Namibia to become energy self-sufficient, improve regional energy security by exporting excess electricity to the Southern Africa Power Pool and will supply various international Ports, including the Port of Rotterdam will clean molecules to decarbonize hard to abate sectors. 

About Climate Fund Managers

Climate Fund Managers has a proven track record of deploying over €1.7 billion into emerging markets through their two flagship funds, Climate Investor 1 and Climate Investor 2. The Manager was recognized by Bloomberg as a Manager of Choice in 2019. 

About Invest International 

Invest International is a Dutch development finance institution that has been mandated by the Dutch Government to invest in strategic infrastructure in emerging market nations, with the mission of improving the lives of its inhabitants. 

About the Environment Investment Fund 

The Environment Investment Fund (EIF) is a fund focused exclusively on investments in the environmental sector. EIF is one of only 24 such entities globally and the only one in Africa to have been accredited by the Global Climate Fund. EIF has raised more than N$2 billion globally and has deployed more than N$1.7 billion into various climate related projects in Namibia. 

About Port of Rotterdam 

The Port of Rotterdam is the largest port in Europe and a key energy hub for Europe. The Port of Rotterdam Authority is working actively to stimulate the energy transition and aims to become the Hydrogen Hub of Europe. In order to fulfil the projected hydrogen demand in its port and its hinterland it will need to import a significant amount of hydrogen from overseas locations. 

About Gasunie 

Gasunie is an energy network operator. In the Netherlands and the northern part of Germany, Gasunie manages and maintains the infrastructure for large-scale transport and storage of gas of over 15,000 kms in the Netherlands and Germany. Gasunie is planning the development of a hydrogen distribution network in the Netherlands and Germany. 

About Hyphen 

Hyphen Hydrogen Energy (Pty) Ltd (“Hyphen”) is a Namibian registered green hydrogen development company, specifically formed to develop green hydrogen projects in Namibia for international, regional and domestic supply. 

Contact Person:                                                                         Lot Ndamanomhata 

Manager Corporate Communications & ICT 

          Environmental Investment Fund of Namibia (EIF) 

                                                                                                    Tel: +264 811601846/+264614317706 

                                                                                                    Email: LNdamanomhata@EIF.ORG.NA 

http://www.eif.org.na 

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