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Japanese Investor Itochu Explores Thriving Green Hydrogen Market in Namibia with Hyphen Hydrogen Energy

29 Aug 2023

Windhoek, Namibia: Itochu Corporation, a prominent Japanese investment and trade company, is setting its sights on the burgeoning green hydrogen market in Namibia through a strategic partnership with Hyphen Hydrogen Energy. The collaboration aims to delve into opportunities presented by a colossal green hydrogen megaproject currently in development within Namibia's borders.

Emerging Green Hydrogen Industry in Namibia As the green hydrogen industry gathers momentum globally, Itochu Corporation has now extended its interest from South Africa to Namibia. A recent agreement between the Japanese giant and Hyphen Hydrogen Energy marks the first step towards exploring the promising prospects within Namibia's nascent green hydrogen sector. Hyphen Hydrogen Energy, the driving force behind the Namibian project, plans to infuse a staggering $9.4 billion into the initiative over the forthcoming years.

Ambitious Investment and Clean Energy Of the total investment, an impressive $4.4 billion will be channeled into the development of 2,000 MW of clean energy capacity, harnessed from solar and wind power installations. Notably, the collaborative venture between German energy entity Enertrag and investor Nicholas Holdings seeks to escalate electrolysis capacity to 5,000 MW by 2030. These substantial investments lay the foundation for Hyphen Hydrogen Energy's ambitious target of producing one million tonnes of green ammonia annually by 2027.

Japan's Role as a Key Market Amidst this ambitious endeavor, Hyphen Hydrogen Energy anticipates Japan emerging as a pivotal global demand center for green ammonia. Marco Raffinetti, the Managing Director of Hyphen, emphasizes the significance of collaboration with Itochu to facilitate supply to this critical market. The partnership intends to utilize green ammonia, a derivative of green hydrogen, to catalyze the decarbonization of various sectors within the Japanese economy.

Itochu's Vision for Sustainable Ammonia Value Chains Shinya Ishizuka, General Manager of Africa Bloc at Itochu, underscores the corporation's strategic intent. Itochu envisions fostering a diverse array of ammonia value chains, both within existing industrial applications and future energy landscapes. The objective is to facilitate decarbonization across Japan, Asia, and surrounding markets through the collaborative development of green ammonia in Namibia.

Green Hydrogen Expansion Beyond Namibia Itochu's explorations in the realm of green hydrogen transcend Namibia's borders. The Japanese conglomerate has also embarked on evaluating potential collaborations within South Africa's green hydrogen landscape. This expansionary approach aligns with Itochu's commitment to playing a pivotal role in fostering sustainable and eco-friendly energy solutions on a global scale.

As the green hydrogen market continues to evolve, partnerships like the one between Itochu and Hyphen Hydrogen Energy exemplify the collective determination to drive transformative change within the energy sector. With innovative initiatives on the horizon, the journey towards a cleaner, greener future gains momentum, setting the stage for a paradigm shift in energy production and utilization.

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