RWE, Hyphen explore offtake of green ammonia from Namibia

Germany's RWE and Windhoek-based Hyphen Hydrogen Energy have signed a memorandum of understanding that could see the former offtake up to 300,000 metric tons/year of green ammonia from Namibia, RWE announced on December 2. 

Hyphen was appointed the preferred bidder by the Namibian government to develop the first green hydrogen project in the country for export. By 2027 the project aims to annually produce 1mn mt of green ammonia - a hydrogen derivative that is particularly suitable for transport by ship. German renewable energy project developer Enertrag is a joint venture partner of Hyphen. 

"Green molecules are the only way for many industries in Germany to achieve their climate targets,” said Ulf Kerstin, COO of RWE Supply & Trading. “In the long term, Germany's demand for them will have to be met mainly through imports. That's why we're looking forward to progressing the offtake discussions with Hyphen - to bring green ammonia from Namibia to Germany." 

RWE announced in March its plan to build a terminal for green ammonia in Brunsbuttel by 2026. This terminal could serve as one port of destination for Namibian ammonia. 

“We are delighted to reach this agreement with RWE. This milestone underpins our ambitious targets to export green hydrogen globally from Namibiam” Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said. “By establishing strong connections with policymakers and offtakers across Europe, we are working with the Government of Namibia to develop the industry which will spearhead southern Africa’s role in achieving regional and global decarbonisation goals.”