Hyphen's huge hydrogen hopes

Hyphen Hydrogen Energy's nationwide campaign to inform Namibians about how they can benefit from one of the biggest economic developments ever in independent Namibia kicked off on Monday, 24 July, in Keetmanshoop.

Government's chosen developer of a brand-new green hydrogen industry shares the framework for the socio-economic benefit that the industry, worth billions, will bring to Namibians.

Previously, Toni Beukes, Hyphen's head of environment, social and governance , shared the framework for the project's intended socio-economic development. To illustrate the size of the 40-year project, she said just the lease of the land in the Tsau ?Khaeb National Park during the current two-year feasibility study period will earn government about N$100 million a year, and after that, the rental price will increase to N$330 million a year.

Hyphen officially signed its agreement with government on 26 May to secure the concession to execute its plan for the establishment of a green hydrogen industry in Namibia.

This US$4.4 billion plan involves massive construction projects of bulk solar power plants, battery storage facilities, wind farms, power substations and electrolysis plants within Tsau ?Khaeb, also formerly known as the Sperrgebiet.

Along with this, water and hydrogen pipelines, transmission power lines, substations and roads for access - which will be shared with other stakeholders - as well as a desalination plant and other infrastructure at Angra Punt in Lüderitz harbour must be built.

The process will begin with the generation of clean electricity, with which seawater will be desalinated and transported by pipe for electrolysis.

Surplus energy will be piped to the national power grid, while hydrogen will be piped to the port and combined with nitrogen to produce ammonia. The ammonia will then be transported by ship to customers in Europe and the east.

Considering the time frame for the construction and development projects, Hyphen is now in the midst of a campaign to measure resources, which include - among other things - the available wind power and solar power, while completing the environmental and social impact assessment.

Engineering, procurement and construction partners are also being selected. Engineering work is beginning to detail the concept design and set specifications for the construction of various parts of the mass project.



Fair opportunities

Studies will begin to convert the targets that Hyphen promised government into obligations, specifically considering employment opportunities - of which Hyphen envisages 16 176 during the operations phase and 1 438 during the construction phase, with 90% for Namibians and 20% for the youth.

Hyphen will create a comprehensive hiring policy and plans to outline various aspects relating to employment, including its recruitment strategy and process. All Namibians, regardless of region, will have equal access to employment and procurement opportunities under the project.

The agreed-upon approach is that every Namibian should have a fair chance to participate in and benefit from the economic development resulting from the project, the company said.

Aspects such as the recruitment process will be collectively determined through engagement with local communities and other key stakeholders, it added.

"This collaborative approach aims to consider constraints that may exist, such as limited internet access or access to a telephone, to ensure equal opportunity and accessibility for all individuals. By taking these factors into account, we can formulate an approach that provides fair and inclusive access to job opportunities," Hyphen said in a July statement.

The company has also promised 30% local sourcing, for which studies must now show how this will be achieved. Value chains are being outlined, local capacity is being measured and a programme to support local enterprises' participation is being created. Hyphen is planning a skills audit for Namibia, and plans are being made to work with educational institutions to fill gaps.

Within 18 months, all of these plans must be implemented.



Improving living conditions

Government will have to agree with the outcome of the studies and the plans going forward. The final social and economic development strategy and plan will be publicly available, according to Beukes.

She said cooperation will be preferred in the effort to achieve Hyphen's goals and, at the same time, improve the living conditions of Namibians.

The feasibility and implementation agreement (FIA) government and Hyphen signed governs the process for the development, implementation and operation of Namibia’s foremost green hydrogen project. At the heart of the FIA is its commitment to the socio-economic development of Namibia through job creation, skills development and local procurement.

Apart from the much-needed employment opportunities to be created, the framework calls for enterprise and supplier development, which will be achieved by supporting Namibian businesses in capturing the opportunities arising from the project. Goods, services and materials will be procured locally, favouring local Namibian-owned entities.

Meanwhile, value-chain mapping, local entity capacity and capability profiling and forecasting, as well as the design of an enterprise and supplier development programme, are among the next steps.



Teamwork

Government is responsible for the development of key public infrastructure in Lüderitz and Aus, while Hyphen will have to provide housing for its employees in the burgeoning southern towns.

Charitable and philanthropic investments for the benefit of the local communities are to be made by Hyphen. The company has proposed to government to supply excess electricity from the project, or additionally to oversize the electricity production in excess of Hyphen’s requirements, in order to supply excess electricity to Lüderitz and Aus.

The exact scale and basis on which electricity could be supplied is to be assessed and agreed to by government during the feasibility phase of the FIA.

Hyphen has also proposed to oversize the desalination plant to be able to supply water to the two towns. The exact scale and basis on which water could be supplied is also to be assessed and agreed to by government during the feasibility phase.

The FIA oversees the reporting, monitoring and evaluation of Hyphen's activities by government throughout construction and operation. It tracks and assesses the progress, outcomes and impacts of Hyphen's implementation of the socio-economic development strategy and plan.

If Hyphen fails to meet its commitments, it can propose a remediation plan to government for approval. Hyphen's failure to implement any approved remediation plan successfully may lead to financial consequences under the FIA.