Green Hydrogen Infrastructure Development

Electricity pylons stretch out as far as you can see, showing the curvature of the earth. Namib Desert, Namibia

Photo by Shutterstock / Stephen Barnes

Green Hydrogen Infrastructure Development
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Utilities
Business Model Description

Develop the required infrastructure to produce highly competitive green ammonia and green hydrogen destined for export. Key infrastructure opportunities include i) a green hydrogen and ammonia plant with wind, solar, electrolysis and desalination assets; ii) a new deepwater port in the harbour town of Luderitz; iii) a wind blade manufacturing plant; iv) and a green steel and fertilizer plant.

Expected Impact

Deliver economically viable green infrastructure solutions to decarbonize Namibia's economy and boost its industrial sector.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13)
Sector Sources
  • 1) Canning, David & Bennathan, Esra, 2000. The Social Rate of Return on Infrastructure Investment. The World Bank, Policy Research Working Paper Series. https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2390. 2) Schwab, K. World Economic Forum, 2019. The Global Competitiveness Report 2019. http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf. 3) Republic of Namibia. Namibian Statistics Agency, 2018. Labour Force Survey 2018 Report. https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NLFS_2018_Report_Final_.pd. 4) United Nations, 2018. Accelerating SDG 7 Achievement Policy Brief 12 Global Progress of SDG 7 - Energy and Gender. https://sustainabledevelopment.un.org/content/documents/17489PB12.pdf. 5) Ministry of Foreign Affairs of Denmark, 2021. Green Hydrogen Compact Catalogue. Available upon request. 6) SDG Center for Africa and Sustainable Development Solutions Network, 2019. Africa SDG Index and Dashboards Report 2019, Kigali and New York: SDG Center for Africa and Sustainable Development Solutions Network, https://sdgcafrica.org/wp-content/uploads/2019/06/SDGS_INDEX_REPORT_2019WEB.pdf. 7) Schwab, K, World Economic Forum, 2019. The Global Competitiveness Report 2019. http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf. 8) Republic of Namibia, National Planning Commission, 2018. Implementation of Sustainable Development Goals, Voluntary National Review. https://sustainabledevelopment.un.org/content/documents/19880New_Version_Full_Voluntary_National_Review_2018_single_1_Report.pdf. 9) African Development Bank Group, 2018. 2018 African Economic Outlook. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/country_notes/Namibia_country_note.pdf. 10) African Development Bank Group, 2020. Namibia: African Development Bank approves $121.7 million loan, Euro 3 million grant to support water and sanitation sector. https://www.afdb.org/en/news-and-events/press-releases/namibia-african-development-bank-approves-1217-million-loan-euro-3-million-grant-support-water-and-sanitation-sector-34727. 11) World Bank, 2020. Leveraging Pension Fund Investment for Domestic Development: Namibia’s Regulation 29 Approach. http://documents1.worldbank.org/curated/en/125241594367606090/pdf/Leveraging-Pension-Fund-Investment-for-Domestic-Development-Namibia-s-Regulation-29-Approach.pdf. 12) Republic of Namibia. Namibian Statistics Agency, 2018. Labour Force Survey 2018 Report. https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NLFS_2018_Report_Final_.pdf. 13) Ino Harith Capital, 2020. Our Partners. https://www.harith.co.za/our-partners-2. 14) Canning, David & Bennathan, Esra. 2000. The Social Rate of Return on Infrastructure Investment, The World Bank, Policy Research Working Paper Series. https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2390.
IOA Sources
  • 21) Office of the President, 2020. Harambee Prosperity Plan 2. https://hppii.gov.na. 22) Ministry of Foreign Affairs of Denmark, 2021. Green Hydrogen Compact Catalogue. Available upon request. 23) Republic of Namibia, National Planning Commission, 2017. Namibia's 5th National Development Plan (NDP5). https://www.npc.gov.na/?wpfb_dl=294. 24) Hydrogen Council, 2017. How hydrogen empowers the energy transition. https://hydrogencouncil.com/wp-content/uploads/2017/06/Hydrogen-Council-Vision-Document.pdf. 25) Science Direct, 2020. Green hydrogen as feedstock. Financial analysis of a photovoltaic-powered electrolysis plant. https://www.sciencedirect.com/science/article/abs/pii/S036031992030625X?via%3Dihub. 26) NSA, 2019. Sustainable Development Goals Baseline Report 2019. https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/SDG_Baseline_Report_2019.pdf. 27) Government of the Republic of Namibia, Ministry of Mines and Energy, 2017. National Renewable Energy Policy. https://mme.gov.na/files/publications/03f_National%20Renewable%20Energy%20Policy%20-%20July%202017.pdf. 28) Government of the Republic of Namibia, Ministry of Mines and Energy, 2016. National Integrated Resource Plan for the Electricity Supply Industry in Namibia. https://www.ecb.org.na/images/docs/Noticeboard/ELECTRICITY%20SECTOR%20NATIONAL%20INTEGRATED%20RESOURCE%20PLAN%20(NIRP)%202016%20Version%201.pdf. 29) Mnyupe, J. 2021. Cop26 Presentation: SCDI. Available on request via James Mnyupe (James.Mnyupe@op.goc.na). 30) IRENA, 2018. Energy Profile: Namibia. https://www.irena.org/IRENADocuments/Statistical_Profiles/Africa/Namibia_Africa_RE_SP.pdf. 31) Goosen, M. 2021. Namibia to Receive $45.7 Million from German Government for Green Hydrogen. Energy Capital & Power. https://energycapitalpower.com/namibia-to-receive-45-7-million-from-german-government-for-green-hydrogen. 32) Brandt, E. 2020. Transitional measures to cater for EPZ beneficiaries…as Special Economic Zone regime is being finalised. New Era. https://neweralive.na/posts/transitional-measures-to-cater-for-epz-beneficiariesas-special-economic-zone-regime-is-being-finalised. 33) Republic of Namibia, 2007. Environmental Management Act 7 of 2007. https://www.lac.org.na/laws/annoSTAT/Environmental%20Management%20Act%207%20of%202007.pdf. 34) Republic of Namibia, 2007. Electricity Act 4 of 2007. https://www.lac.org.na/laws/annoSTAT/Electricity%20Act%204%20of%202007.pdf. 35) Namibia Electricity Control Board, 2004. Namibian Quality of Electricity Supply & Service Standards. https://www.ecb.org.na/images/docs/Technical_Regulation/standards_ECB/quality_service_standard.pdf. 36) Government of Namibia, 2007. Transmission Grid Code: Electricity Act, 2007. https://www.lac.org.na/laws/2018/6731.pdf.