Hydrogen | EU Commits €50 Million to Hydrogen Funds in Namibia and South Africa

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Hydrogen | EU Commits €50 Million to Hydrogen Funds in Namibia and South Africa

Date：2024-09-07

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Keyword tags： Hydrogen EU Africa

At the beginning of this month, the European Union announced that it would provide €50 million in financial support to renewable hydrogen investment funds in Namibia and South Africa, with each country receiving €25 million.

On September 4th, EU Energy Commissioner Kadri Simson stated at the Global African Hydrogen Summit in Windhoek that these funds would come from the EU's "Global Gateway" international investment program. The investment will specifically target private projects throughout the entire hydrogen value chain, such as hydrogen production, transportation, and storage, as well as downstream industries.

The SDG Namibia Fund in Namibia will receive €25 million. This is a climate fund headquartered in the Netherlands. The SDG Namibia Fund, launched at the end of 2022, aims to raise various financing of $1 billion for renewable hydrogen projects and related infrastructure. The fund has received support from Dutch state-owned Invest International and USAID Southern Africa Mobilizing Investment, and made its first investment at the end of 2023, supporting the Hyphen renewable hydrogen and ammonia project with an initial fund of €23 million.

South Africa's SA-H2 Fund will also receive up to $1 billion in funds from the aforementioned Dutch Invest International and other Dutch institutions.

In addition to the aforementioned funding support, EU Energy Commissioner Kadri Simson also announced investments in two other small hydrogen projects in Namibia.

Firstly, the EU, together with Germany, will provide €2.7 million in funding support for Namibia's EU-Get.transform program's country window project. It is understood that the goal of this investment is to support the Ministry of Mines and Energy's energy planning and help Namibia expand its renewable energy generation capacity and increase access to renewable energy by creating opportunities for decentralized renewable energy solutions in remote areas.

Secondly, the EU will provide a total grant of €1.2 million for Namibia's Green Hydrogen Program. This will ensure that the green hydrogen industry is guided and regulated by an effective support mechanism. The project is also supported by Germany and the Netherlands.

The EU plans to invest €1 billion in Namibia's renewable hydrogen and sustainable raw materials value chain. The European Commission stated last year that the EU, its member states, and European financial institutions will provide these funds as part of the EU's €300 billion "Global Gateway" program. The "Global Gateway" program focuses on investment in Latin America and the Caribbean, Asia-Pacific, and Sub-Saharan Africa.

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