Study calls for Namcor to venture into green hydrogen

The government has been advised to consider giving national oil and gas company, the National Petroleum Corporation of Namibia (Namcor), an expanded mandate to manage Namibia’s green hydrogen resources.

This recommendation follows a study tour to Belgium by authorities to benchmark that country’s green hydrogen programme.

The recommendation is contained in a working document seen by Market Watch.

“As Namibia’s national oil company, Namcor holds a crucial role in ensuring the security of petroleum product supply across the country. Given this mandate, it can be seen as a natural progression for Namcor to diversify into synthetic fuels,” the report said.

“As a first step, an investigation into the feasibility of such an arrangement and exploring the potential for an expanded role for Namcor can be carried out,” it advised.

Namcor’s expanded focus is viewed as pivotal towards driving Namibia’s green hydrogen ambitions.

“Namcor’s existing operations in oil, gas and minerals uniquely position it to transition into hydrogen management. By leveraging its infrastructure, technical expertise and regulatory knowledge, Namcor can swiftly contribute to Namibia’s hydrogen backbone,” the report said.

Learn from others

The report also recommended Namcor mirror the operations of Oman's Hydrom company, which will lead efforts to industrialise that country’s green hydrogen industries.

“From our initial assessment, Namcor, with its expertise and existing infrastructure, can mirror Hydrom’s success through facilitating the development and management of common user infrastructure like pipelines and storage,” the report said.

Foreign direct investment (FDI) is crucial in building the necessary infrastructure for the production, storage, transportation and distribution of green hydrogen, the report emphasised.

“By attracting international investors and establishing partnerships with countries like Belgium and the European Union (EU), Namibia can achieve its green hydrogen aspirations,” the report said.

FDI is pivotal for Namibia’s burgeoning hydrogen industry, which stands on the cusp of a green energy revolution. “The Namibian government’s strategic initiatives, such as the establishment of Namibia Hydrogen Fund Managers (Nam H2 Managers) and the SDG Namibia One Fund, will be key in raising significant capital to develop this sector,” the report added.