WINDHOEK, December 7 – Hyphen Hydrogen Energy (Hyphen) and the Development Bank of Southern Africa (DBSA) proudly announce the successful closure of a €5 million Project Preparation funding facility aimed at advancing the development of Hyphen’s groundbreaking green hydrogen project.
This substantial €5 million facility will be allocated to partially fund engineering, environmental, and socio-economic development workstreams associated with the project’s development up to the final investment decision.
This collaboration underscores DBSA’s confidence in the transformative impact that the Hyphen project is poised to have on Namibia and its economy. Hyphen anticipates the creation of up to 15,000 new jobs during the construction phase and 3,000 permanent positions upon the completion of both phases. The objective is to fill 90% of these positions with Namibians, with a targeted 20% earmarked for youth employment. At the heart of this partnership lies a core theme of COP28, emphasizing international collaboration for climate goals. Today’s announcement emphasizes the pivotal role played by development finance institutions in collaboration with private developers in Africa to propel green energy initiatives.
Hyphen and DBSA had initially disclosed their intentions to establish a funding facility on 24 October 2023.
Marco Raffinetti, CEO of Hyphen Hydrogen Energy, emphasized the critical role of collaboration with African lending institutions for the success of the Hyphen project. He stated, “This funding facility demonstrates these partnerships in action. It will provide crucial funding for the development and integration of the project, and subsequently, the socio-economic development of Namibia. Hyphen and the DBSA are aligned with the common purpose to drive the future of renewable energy in Namibia and beyond, and we look forward to working together to achieve this.”
Catherine Koffman, Group Executive Project Preparation at DBSA, highlighted the catalytic impact of the collaboration between the private sector and development capital. She noted, “The DBSA and Hyphen’s partnership will facilitate the creation of a new asset class in the energy sector with a profound and positive economic, social, and environmental impact in Namibia and the region. Green Hydrogen is a versatile energy carrier that is vital for decarbonizing key sectors of the economy, including hard-to-abate industries like steel and chemicals. The investment emphasizes the bank’s commitment to accelerating the transition to net zero and looks forward to a successful completion of the project.”