A vast stretch of largely untouched desert and coastal wilderness in Namibia may soon become the site of a massive green hydrogen production facility, a development that has sparked both optimism about economic opportunities and concern over potential ecological damage in one of the country’s most unique natural regions.
The project forms part of Namibia’s ambitious strategy to position itself as a global leader in green hydrogen production. By exporting the clean-burning fuel, the government hopes to contribute to global emission reduction efforts while also generating revenue and employment at home. The initiative is being spearheaded by Hyphen, a joint venture led by Germany-based renewable energy company Enertrag, which believes Namibia possesses exceptional solar and wind energy resources necessary for large-scale hydrogen production.
Hydrogen, a highly flammable gas that produces only heat and water when burned, is widely used in industries such as petroleum refining, chemical production, metallurgy and fertiliser manufacturing. Traditionally, hydrogen is produced using fossil fuels, a process that releases greenhouse gases. However, when renewable energy sources power the production process, the resulting fuel is referred to as “green hydrogen” and is considered significantly more environmentally friendly.
Despite the promise of clean energy, the proposal to construct large solar and wind farms within the Tsau ǁKhaeb National Park has drawn criticism from environmental groups. The park, covering around 26,000 square kilometres, was established in 2004 on land previously known as the “Sperrgebiet,” or “Restricted Area,” during the German colonial era. The region was sealed off more than a century ago to protect diamond mining operations, which inadvertently allowed rare ecosystems to thrive with minimal human interference.
Following the decline of diamond mining, the isolated landscape became a haven for diverse plant and animal life. Environmental advocates warn that industrial development in the area could threaten species that have adapted to the harsh desert conditions over centuries. The Namibian Chamber of the Environment has expressed particular concern for the region’s unique succulents, which have evolved specialised survival strategies such as storing water and reflecting sunlight to endure the arid environment.
The chamber recently released a report suggesting that the project should be categorised as “red hydrogen” rather than green hydrogen because of its potential impact on biodiversity. Chris Brown, head of the organisation, criticised what he described as a double standard by industrialised countries supporting the project. According to him, nations like Germany would not permit similar industrial activity in their own protected natural areas.
Further concerns have been raised about the potential impact on marine life along the nearby coastline, which forms part of the Namibian Islands Marine Protected Area. This 400-kilometre stretch of ocean habitat is home to the critically endangered African penguin. The Namibian Foundation for the Conservation of Seabirds has warned that planned expansion of the port near Lüderitz — required to support the hydrogen export infrastructure — could affect sensitive marine ecosystems that sustain penguins and other coastal bird species.
Hyphen officials maintain that the project will incorporate extensive environmental safeguards. The company says it is conducting detailed environmental and social impact assessments and plans to avoid the most sensitive ecological zones in order to minimise its footprint. Representatives argue that the southern region of Namibia offers the best combination of solar and wind resources, which is crucial if the country hopes to compete with other emerging hydrogen producers worldwide.
Even before construction has begun, the project is already influencing the local economy in Lüderitz, a small coastal town historically dependent on fishing. Former mayor Phil Balhao noted that the prospect of the hydrogen project has attracted new investments, services and development opportunities that previously seemed unlikely for the remote town.
Economic expectations are particularly significant in a country where youth unemployment officially stands at around 44 percent. The Namibian government holds a 24 percent stake in the venture, highlighting its strategic importance to the nation’s economic plans.
The scale of the project is substantial. Hyphen intends to generate about 3.75 gigawatts of renewable electricity in the initial phase, which would power electrolysers used to split water into hydrogen and oxygen. Because hydrogen is difficult to transport in its raw form, the gas would be converted into ammonia near the coast for easier shipping. The company aims to produce up to one million tonnes annually by 2028.
The investment required for the development is estimated at more than $10 billion — a massive figure for Namibia, whose entire annual economic output is just over $13 billion. While the project promises transformative economic potential, it also raises complex questions about balancing economic growth with the preservation of one of Africa’s most fragile natural environments.
