The United Nations' Green Climate Fund has approved US$56 million, about N$931 million, for Namibia's green hydrogen sector. The decision was taken at the fund's 46th board meeting in Songdo, South Korea, held from 26 to 29 October 2026, according to Namibian Sun.
The money will support green hydrogen production, downstream products such as green ammonia and green methanol, and the decarbonisation of industries that are difficult to wean off fossil fuels. It flows through SDG Namibia One, the equity vehicle that pools investor funding and allocates it across approved projects.
How the US$56 million breaks down
The board approved US$15 million for the Development Tranche of SDG Namibia One, which finances early-stage project development. A further US$41 million goes to the Construction Equity Tranche, which provides equity capital to carry projects through the construction phase.
Mercia Geises, chief executive of SDG Namibia One, said the allocation is a major boost to Namibia's ambition to build a green industrial sector. She expects the money to become available in Namibia during the first quarter of 2027.
Beyond Hyphen Hydrogen Energy, the initiatives expected to benefit include the HyIron project, the Daures Green Hydrogen Village and the Zero project. For Hyphen, the funding will help finance the government's 24% stake in a development valued at more than US$10 billion, Geises said.
'I think it is absolutely good news, with the potential to change lives,' Geises said.
The equity fund has a 12-year lifespan, after which investments will be realised and returns distributed to investors. Geises expects substantial spending on construction and operations, creating jobs and generating tax revenue for the national treasury through import duties and income tax. Namibian institutional investors will also have an opportunity to participate.
What the funding means for local businesses
Geises said the projects could create significant opportunities for local contractors, small and medium-sized enterprises and the wider workforce. Pilot projects have already tested the scale and capabilities of Namibian companies in earthmoving and earthworks, plumbing and piping.
'There are parts of the work that local contractors and SMEs can do. There are massive opportunities, and experienced plumbers can learn and grow,' she said.
She also pointed to openings in electrical connections, solar installations and welding, noting that Namibia already has experience in the solar energy sector. She acknowledged, however, that the country still lacks a local content policy specifically for the green hydrogen sector, a gap that reform-minded policymakers will need to close if the economic benefits are to stay onshore.
Can Namibia deliver cost-competitive green hydrogen by 2030?
The supported projects are working towards delivering cost-competitive Namibian products by 2030, positioning the country to participate in early green hydrogen offtake opportunities, Geises said. She described the participating developers as committed but cautioned that projects of this scale take time to materialise.
'These are mega-scale projects, bigger than the national GDP on a combined basis. They do take time,' she said.
SDG Namibia One is currently focused on financing investments that reduce project risks, while helping developers secure market access and offtake agreements. The projects still require considerable support with licensing, permitting and other development processes, as well as the resolution of legal and regulatory constraints.
'Reforms need to be put in place. Remember, this has never been done at this scale,' Geises said.
Beyond hydrogen production
SDG Namibia One is also exploring opportunities in synthetic fuels and mineral processing that use hydrogen as a reducing agent. Other potential investment areas include transport-related industries such as shipping, aviation, rail and long-haul freight, all sectors that are difficult to decarbonise through electrification alone.
The fund is additionally looking at biogas as a sustainable input for blended hydrogen products and fuels. Republikein reported that the funding will support project development and construction equity for green hydrogen initiatives including Hyphen, HyIron and the Daures Green Hydrogen Village.
Frequently asked questions
How much did the Green Climate Fund approve for Namibia?
The fund approved US$56 million, about N$931 million, at its 46th board meeting in Songdo, South Korea, from 26 to 29 October 2026.
Which Namibian projects will benefit?
The Hyphen Hydrogen Energy project, the HyIron project, the Daures Green Hydrogen Village and the Zero project are expected to benefit, according to SDG Namibia One chief executive Mercia Geises.
When will the money reach Namibia?
Geises expects the funds to become available in Namibia during the first quarter of 2027.