N$17b Henties green hydrogen project cements ambitions

A massive development slated for Henties Bay adds another major investment to Namibia’s ambitions of becoming a global producer of renewable energy and green industrial products. This is after CMMZE Energy Namibia approved the Final Investment Decision at the end of September 2026 for a proposed N$17 billion green hydrogen and ammonia development in the usually sleepy town of Henties Bay.

“The facility will have a production of 35 000 tonnes of green hydrogen that converts into 210 000 tonnes of green ammonia per year through subsequent processing. The production facility will operate independently from the main power grid because it includes a renewable energy plant,” reads a CMMZE media statement.

CMMZE Energy Namibia is majority-owned by CMMZE Invest which operates as a worldwide shipowner since its establishment in 1979 and brings more than four decades of maritime industry expertise. “The Henties Bay coastal facility operates as the direct loading point for green ammonia which CMM vessels then deliver to European Union destinations,” the company stated.

Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable electricity, is attracting growing international interest as countries seek alternatives to fossil fuels and ways of reducing emissions from industries that are difficult to decarbonise.

Now, it’s Namibia’s turn to use the Henties Bay project to further cement the country as a major green hydrogen producer by gaining another potential boost following the approval of the N$17 billion green hydrogen and ammonia project. The proposed development represents a significant investment opportunity for the Erongo region, which is increasingly positioning itself as a centre for renewable energy, industrial development and value-added manufacturing.

If successfully implemented, the Henties Bay project could strengthen Erongo’s position as an emerging renewable energy and industrial investment destination.

For now, the N$17 billion announcement adds considerable ambition to Namibia’s green hydrogen investment pipeline. The real test will be whether the proposed investment can secure financing, demonstrate commercial viability and ultimately deliver jobs, industrial capacity and lasting economic benefits.

Government ambitions include developing domestic industrial capacity, creating skilled employment, expanding local supply chains and positioning the country as a competitive destination for energy-intensive industries.

**Investment pipeline **

The Henties Bay announcement comes against the backdrop of several other significant green hydrogen developments in Namibia. One of the most ambitious is the Hyphen Hydrogen Energy project in the Tsau //Khaeb National Park near Lüderitz. Estimated at approximately US$10 billion, the project is targeting annual production of about two million tonnes of green ammonia once fully developed.

Hyphen’s first phase envisages 3.5 gigawatts of renewable electricity generation capacity from solar and wind, alongside 1.5 gigawatts of electrolyser capacity. The project is also expected to incorporate pipelines, storage facilities and port infrastructure. The African Development Bank has been supporting preparations for the development, including project preparation financing.

Another important initiative is the Daures Green Hydrogen Village in the Erongo Region, which aims to demonstrate how Namibia’s abundant solar and wind resources can support domestic green fertiliser production. The second phase for Daures is being developed as a commercial-scale green ammonia and fertiliser facility, with a targeted final investment decision in June 2028 and commercial operations envisaged for March 2030.

Meanwhile, the harbour town of Walvis Bay is also emerging as a potential green ammonia production and refuelling hub. A pilot initiative involving Siemens Sub-Saharan Africa is exploring the production of green hydrogen and ammonia for industrial applications and potentially cleaner maritime transport. Plans have also been discussed for a substantially larger 140-megawatt facility.

Moreover, the proposed Henties Bay investment adds to the growing pipeline of projects competing to position Namibia within the emerging global green hydrogen economy.

In addition, local participation will also be critical as Namibian companies must be positioned to participate in engineering, construction, maintenance, logistics and the supply of industrial services rather than remaining on the margins of developments financed and driven by international capital.

Moreover, the country’s green hydrogen ambitions represent both an energy transition opportunity and a test of the ability to translate natural-resource advantages into sustainable industrialisation.

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