The O&L Group and CMB.TECH launched Namibia's first green hydrogen production plant. The plant, a demonstration hub for hydrogen applications, will be built in the Erongo region. 

The construction will start during 2022 with the aim to be operational by the end of 2023. Depending on the results of the demonstration plant, a larger scale production plant will follow in a second phase, possibly using ammonia as transport fuel.

The O&L Group and CMB.TECH also announced the JV, Cleanergy Namibia, which will develop green hydrogen production projects in Namibia including leading the green hydrogen production plant and demonstration hub, its first development in Namibia and the continent. The aim is to produce green hydrogen from solar power and distribute the clean fuel to heavy-duty applications like trucks, locomotives, mining equipment and ships. 

"At O&L, we are guided by our purpose, 'Creating a future, enhancing life,' and one of the biggest concerns of our time that will directly affect the quality of the future we create is climate change," said Executive Chairman of the O&L Group, Sven Thieme. "The world is in a race to limit global warming and reach net-zero emissions by 2050, in accordance with the United Nations’ global roadmap, and one of the key shifts required to ensure a sustainable future includes the transition to clean energy solutions. While the move away from fossil fuels may take several paths, green hydrogen is one that shows tremendous potential in getting us there."

"Namibia is a growing hub when it comes to the generation of renewable energy, whether that be through solar, wind or hydroelectric power, and this is what makes our country optimally positioned to explore the generation of green hydrogen, or hydrogen that is generated using renewable electricity. With Namibia’s capacity to generate solar power in particular, the country has the potential to be at the forefront of green hydrogen development and progress towards greater energy independence," said Thieme. "It is with these encouraging prospects that we have established Cleanergy Namibia, a company designed to explore green hydrogen generation through the country’s first green hydrogen demonstration plant, an investment worth about US$18 MM, set to be completed and operational in 2023."

Cleanergy Namibia’s ambitions go beyond the initial production and demonstration plant. Building on the knowledge that will be acquired during the construction of the hydrogen plant, Cleanergy will simultaneously develop a much larger green hydrogen and ammonia factory in Namibia. By starting the hydrogen production plant already in 2022, Cleanergy Namibia wants to demonstrate that green hydrogen projects are already a reality today.

"The demonstration plant could prove to be the first step in creating an entirely new industry in Namibia in addition to enabling knowledge transfer into the country; upskilling opportunities and creating employment; driving further research, including collaboration with the University of Namibia; and developing future offtake opportunities in sectors such as transportation, mining, heavy machinery, and power generation," said Thieme.