Geingob’s HOT Pursuit of a Green Hydrogen Economy for Namibia

  • Hage Geingob had a vision for Namibia that depended on the production of green hydrogen to finance the country’s development. 
  • The green hydrogen project is a result of close collaboration between Namibia and Germany, who provided financial and resource assistance.
  • The project has faced opposition from the Nama ethnic group as the power plant was supposed to be built on the part of Nama’s sacred land.
Hage Geingog. By: Foreign and Commonwealth Office (OGL v1.0)

Why was Hage Geingob Hot?

Answer: In 2022, Geingob introduced the Namibia Green Hydrogen and Derivatives Strategy to develop renewable energy sources and achieve energy self-sufficiency.

The late president of Namibia, Hage Geingob, aimed to position the country as a key player in the global green hydrogen market by focusing on utilising Namibia’s abundant resources for sustainable energy development. In November 2022, he launched the Green Hydrogen and Derivatives Strategy, recognizing the critical role green hydrogen plays in global decarbonization efforts.

Geingob’s strategy targeted the creation of a large-scale green fuels industry, with ambitious production goals: 1-2 million tonnes per annum by 2030 and 10-12 million tonnes per annum by 2050, with an expected demand of approximately 750 TWh, which could power around 70 million U.S. homes for a year. This would be produced per year upon completion of three hydrogen villages in 2050. The strategy anticipates production costs below $2 per kg of hydrogen by 2030 and below $1 per kg by 2050. For context, the price of green hydrogen in the European Union is $4.91 per kg.

The flagship of this initiative is the Hyphen Project. Announced at COP 26, Hyphen Energy was selected as the preferred bidder for Namibia’s first giga-scale green hydrogen project, obtaining a 40-year concession to develop a $9.4 billion green hydrogen project across more than 4,000 km² of land. For context, Namibia’s GDP in 2021 was $12.2 billion.

In 2022, Hyphen signed a memoranda of understanding with several potential European customers, aiming to supply about 750,000 tonnes of green ammonia annually. Additionally, a letter of intent was signed with Koole Terminals to facilitate the proposed import of green ammonia into Europe from the Port of Rotterdam in the Netherlands.

The central region of Namibia, encompassing Khomas, Otjozondjupa, and Erongo, is planned to be the hub of green hydrogen projects due to its robust infrastructure and labour force. The region boasts export facilities at Walvis Bay Port and access to domestic biogenic CO2 sources, making it an ideal location for green hydrogen development. Biogenic CO2 is important for industrial processes. Since it originates from natural processes such as the decomposition in the agricultural sector, Namibia can be very rich in it. The biogenic CO2, due to its natural origins, can re-enter the natural carbon cycle, unlike the fossil fuel-originated CO2 which only adds to man-made emissions of GHG. Therefore, such sources could make the industrial processes, such as the production of green hydrogen, more sustainable.

Geingob’s strategy not only aims to transform Namibia’s energy landscape but also seeks to establish the country as a leader in sustainable development, creating economic growth and addressing environmental concerns simultaneously.

What was changing Geingob’s temperature?

Answer: Hage Geingob’s green hydrogen strategy needed to appeal to various stakeholders such as the Nama Tribe and the Affirmative Repositioning.

Hage Geingob’s ability to secure international funding and support for Namibia’s climate initiatives was a significant factor in increasing his popularity. Contributions from the Green Climate Fund demonstrate his effectiveness in navigating international political landscapes to benefit Namibia.

In terms of what is hindering his popularity, the flagship project, Hyphen Hydrogen Energy, faced resistance from the Nama ethnic group. The Nama ethnic group rejected Namport’s proposal to expand a facility on Shark Island, a heritage site sacred to the community, to facilitate green hydrogen production and export by German company Hyphen Hydrogen Energy. The main reason was that in the early 1900s, German authorities ran a concentration camp on Shark Island, where around 3,000 locals were killed. 

Another group that openly opposed the project was the Affirmative Repositioning (AR) in Namibia. AR is a political and social movement in Namibia aiming to reform urban land allocation. The AR was demanding that the government receive a free 24% share of the project. This means that they wanted the government to own nearly a quarter of the project without having to pay for it. This is because they felt that the government had already been providing the resources and land that the project needed to go forward.  The government, however, was keen to adopt a more investor-like approach. They preferred to buy the shares by borrowing money and receiving grants. This way, the government would have more control over the project and ensure that other investors are confident in the project.

Following the death of Hage Geingob in February 2024, his vice president, Nangolo Mbumba, was sworn in as the acting president. He is continuing the Hydrogen Strategy that Hage Geingob had started according to the conditions set.

What was driving Geingob?

Answer: Hage Geingob’s ambitions to develop Namibia through sustainable and green initiatives.

Hage Geingob was driven by personal and governance goals, focusing on the development of Namibia through strategic investments and sustainable policies. He understood the crucial role of foreign direct investment in fostering Namibia’s growth and aimed to attract international investors by showcasing Namibia’s commitment to green development. His development-driven approach was evident in projects like the Hyphen Hydrogen Project This project highlighted his vision of leveraging Namibia’s natural resources to drive economic growth and create thousands of jobs for Namibians​​.

Geingob’s goal was to make Namibia energy self-sufficient and reduce its dependence on imported electricity from neighbouring countries. Namibia currently imports over $235 million worth of electricity from countries such as Zambia, South Africa, and Zimbabwe, making it the 49th greatest importer of electricity worldwide​​ . By developing green hydrogen technologies, Namibia has the potential to become self-sufficient in energy. This shift would save substantial budget funds, which could then be invested in further state development, aligning with Geingob’s vision of sustainable economic growth​​.

Through these initiatives, Geingob aimed not only to secure energy independence but also to position Namibia as a strategic player in the global renewable energy market, thus driving long-term economic prosperity for the nation​. 

What does this mean for you?

Answer: Namibia becoming a green hydrogen exporter implies a change of dynamics in the international energy sector. 

Namibia’s further developments in the green hydrogen energy sector will have impacts not only on the local economy but will also impact the international dynamics regarding energy trade, which will either directly or indirectly affect all of us. 

Firstly, as Namibia will surpass its energy needs with the outputs of the green hydrogen project, the state will have the opportunity to export it not only to neighbouring states – creating competition to its previous trade partners – but also to other continents, such as Europe due to the partnership with Germany. That also implies that Germany will have an advantage in this market due to investment and partial sponsorship of the green hydrogen project.

Therefore, if all goes well and all the goals and targets are reached Namibia has the potential to be significant in global climate fight. Moreover, the state can become a very good strategic ally on the international energy arena. This is exemplified by Namibia’s alliance with Germany. Being on good terms with Namibia might imply more affordable energy imports for other states boosting others’ economic situation.

Namibia might become an example of development through green industrialization. Hage Geingob recognized the potential of climate action in attracting foreign investment in green technologies, such as green hydrogen, and made it his plan to ensure Namibia’s progress. Furthermore, these projects have several positive effects on the local environment, such as limiting greenhouse gas emissions and mitigating anthropogenic climate change’s adverse effects.

IExRAIA Summer Research Program:

This article is a preview of a report on Hage Geingob produced as part of an RAIA research program on climate leaders. For a full picture of Geingobs’s climate leadership, read the full report. This project was fully financed by IE University’s IE School of Politics, Economics and Global Affairs.

Authors: Clara Chikuse & Maja Prokopiuk

Editor: Dario Hasenstab

Project Lead: Francia Morales

RAIA Team

The shared Account of RAIA members and Alumni