The Daures Green Hydrogen Village in Namibia is set to produce the country’s first green hydrogen and ammonia in July, with the project’s construction now 80% complete.

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The facility will produce 18 tonnes of H2 and 100 tonnes of NH3 a year, which will go towards the production of ammonia sulphate fertilisers to grow crops in a co-located greenhouse.

However, the project is also set to scale up to supply regional and international exports, with 3,500 tonnes of annual ammonia production by 2027, 352,000 tonnes by 2032, and 700,000 tonnes a year in a final phase.

Memoranda of understanding (MOUs) for ammonia offtake have already been signed with Zimbabwean fertiliser manufacturer Sable Chemicals, Guernsey-headquartered Andrada Mining, and the UN’s World Food Programme.

The Daures Green Hydrogen Village had also signed an MOU with Australia’s Fortescue in January 2023 to explore co-development, although there had been no further updates on this agreement.

While the July start-up could represent a delay from initial reports suggesting the plant would be on line as early as June, the project is still within its stated timeline for commissioning the pilot phase.

The consortium behind the Daures Green Hydrogen Village, led by developer Enersense, had received a grant worth N$220m ($11.6m) from the German government in 2022.

Namibia is also set to produce its first green hydrogen-derived iron by the end of this year at start-up HyIron’s Oshivela facility, which had also received German government funding worth €13m ($14m).

Meanwhile, the country’s flagship 3GW Hyphen project, which is geared towards exporting huge volumes of ammonia to offtakers in Europe and Asia, is not set to reach a final investment decision until 2025.

As such, Namibia appears to be moving in a similar direction recommended by the UN and the International Renewable Energy Agency in a recent report, starting with small-scale green hydrogen production for local use in value-add products such as fertiliser and steel, before gradually scaling up for exports.