Approximately seven European companies have shown strong interest in investing in Namibia’s green hydrogen economy, with potential investments exceeding N$430 billion (€20 billion), according to Ana Beatriz Martins, the European Union (EU) Ambassador to Namibia.
Speaking at the grand opening of the HyIron Oshivela plant near Arandis, Martins noted:
“EU companies are leading investors, contributing to Namibia’s economic growth and creating job opportunities for the future.”
Namibia’s growing appeal lies in its potential to help European countries meet decarbonisation goals. Regulatory mechanisms like the EU’s Carbon Border Adjustment Mechanism have further positioned Namibia as a strategic supplier of low-emission energy and materials.
“The EU’s support includes blended finance investments and capacity building, especially to help the Green Hydrogen Programme establish a supportive regulatory framework and carry out key Environmental, Social, and Governance (ESG) assessments,” Martins said.
She stressed the importance of upgrading Namibia’s port infrastructure and strengthening vocational training in the green energy sector.
The EU is also investing in civil society initiatives to improve transparency, participation, and public understanding of renewable energy and extractive industries.
Currently, six European countries are actively engaged in Namibia’s green energy sector.
One key project is HyIron’s Oshivela plant, a joint venture between Namibian and German companies. Now in its second phase, the project aims to scale up production from 15,000 to 200,000 tonnes of green iron per year.
“Prospective offtake agreements with major European and Asian steel and manufacturing companies demonstrate strong international market confidence in Namibia’s green hydrogen potential,” Martins added.
HyIron’s Oshivela facility produced its first green hydrogen last month, with green iron ore production set to begin soon.
“HyIron and Cleanergy have already completed their pilot phases. Other projects backed by European capital and expertise — including Zhero and Hyphen — are expected to reach Final Investment Decision by the end of next year,” Martins said.
During HyIron’s two-year pilot phase, over 60 Namibian small and medium-sized enterprises were involved, and more than 400 Namibians were employed, showcasing the sector’s growing local impact.
