Namibia advances green hydrogen projects despite legal framework gaps
via The Namibian5 min read
Namibia is moving forward with green hydrogen projects, including the US$10 billion Hyphen Hydrogen Energy project, even though dedicated legislation for the sector is not yet in place. National Planning Commission director general Kaire Mbuende stated at the World Hydrogen Summit and Exhibition in Rotterdam that Namibia is shifting from planning to implementation, aiming to create 30,000 green jobs by 2030 and contribute to global decarbonization. Green hydrogen is a key component of Namibia’s sixth National Development Plan NDP6, intended to diversify the economy. Projects include the Hyphen project, targeting three million tonnes of green hydrogen annually, the Green Iron Production project, and the Green Transport project with CMB Tech. While some politicians, like Landless People’s Movement parliamentarian Eneas Emvula, have questioned the lack of specific legislation, Minister of industries, mines and energy Modestus Amutse asserts that existing laws, such as the Environmental Management Act and the Electricity Act, are sufficient. However, Mutindi Jacobs, acting deputy chief in the directorate of law reform and legislation, confirmed that consultations for a green hydrogen draft bill are ongoing, with submission to parliament expected by the end of the year after the green hydrogen policy was completed last year. Jacobs noted that the policy, developed by an interministerial committee, is anchored in the Green Hydrogen Strategy of 2022 and the Green Industrialisation B
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Formal identification of the four victims of a Desert Air crash earlier this month has been completed, allowing for their repatriation to Germany. National police spokesperson deputy commissioner Kauna Shikwambi confirmed that the bodies are being released to funeral undertakers. The victims were identified as German tourists Silke Lohmiller, Richard Lohmiller, their son Henry, and pilot Martin Funck. The recovery of the aircraft and victims was challenging due to the crash site's location near a mountain peak in a steep gorge with high elevation and treacherous terrain. Access by foot was difficult, and bodies had to be airlifted. DNA testing confirmed the identities, with German authorities providing profiles for the family and the pilot's son submitting a sample. The investigation into the crash's cause is ongoing, with international representatives from the German Aircraft Accident Investigation Bureau and the state of aircraft manufacture joining the team. The aircraft went missing en route from Windhoek to Sossusvlei, and Desert Air chief executive Willem de Wet had previously announced there were no survivors.
First Capital chief executive Laina Amutenya has rejected claims of wrongdoing regarding alleged unlawful project management fees. Property developer Joseph Andreas accused First Capital of deducting nearly N$48 million in fees from clients involved in a 300-house project in Grootfontein. Amutenya stated that First Capital operates in accordance with its contractual obligations, applicable laws, and industry standards. She emphasized the importance of preventing stakeholders, including purchasers, investors, and industry participants, from being misled by incomplete reporting on matters that are still subject to judicial determination.
Must ReadThe Namibian government's borrowing from local banks increased by N$20.4 billion over the past year, reaching N$52.4 billion in April. Simonis Storm economist Almandro Jansen noted that this 63.6% surge in government borrowing is the primary driver of money supply growth in the economy. While this influx of funds boosts liquidity, it also heightens the risk of inflation. Jansen pointed out that such significant fiscal-driven monetary expansion has historically led to inflationary pressures in small, open economies with fixed exchange rates. Namibia's inflation rate recently accelerated to 3.1% from 2.1% in a single month, suggesting this risk may be materializing, although the April spike is primarily attributed to the transport component rather than fiscal-monetary transmission. Although government borrowing decreased by N$2 billion from its March peak of N$54.4 billion, Jansen explained that this reduction was largely due to the receipt of Southern African Customs Union Sacu revenue and the normalization of government spending at the start of the new financial year.
Angelique Peake, who leads RMB Namibia’s oil and gas practice, stated that Namibia should leverage its extractive industry to develop an industrial hub over the coming decades. She highlighted that recent oil and gas discoveries, alongside the country's long-standing experience in extractive industries, present an opportunity for significant upskilling and growth in manufacturing and industrial sectors. Peake noted Namibia's diverse commodities, including well-established uranium mining operations and upcoming projects, which allow the country to adapt to market fluctuations. The pursuit of green hydrogen also contributes to green industrialization efforts. These industries could elevate the economy, fostering a high-skill, high-employment environment, though this is a long-term endeavor requiring changes in skills, labor, and certifications. Exploring these commodities will also enable Namibia to build supportive systems like infrastructure, with an opportunity to transform Walvis Bay into a strategic logistics hub. Peake cited Aliko Dangote’s proposal to use Walvis Bay for fuel storage and a pipeline to Zimbabwe as an example of a broader strategic move, enhancing sub-Saharan Africa's energy independence. She emphasized that while mines have a finite lifespan, the current opportunity is to build an industrial hub that can endure much longer through skills, industry, and manufacturing.