Govt 'not funding' Hyphen stake

Government is not using taxpayer money or assuming any direct financial risk to fund its 24% equity stake in the Hyphen Green Hydrogen Project, with the state's share of the project's development costs being financed through grants from international partners.

Hyphen Hydrogen Energy chief executive Marco Raffinetti made the clarification while briefing parliament's standing committee on natural resources, saying there is widespread misunderstanding about how government's participation in the multibillion-dollar project is being funded.

Raffinetti said government's equity stake, held through the Environmental Investment Fund (EIF) on behalf of the Sovereign Wealth Fund, has not been financed from the national budget.

"All the money that the government is spending on its share of the project's development costs is being funded by the Dutch government and the European Union," he told lawmakers.

"At this stage, the government is not spending any of its own money or taking any financial risk on the Hyphen project, other than the costs of supporting the green hydrogen industry and the programmes it is implementing for the benefit of the entire sector," Raffinetti added.

He said the financing structure allows Namibia to participate as an equity partner while limiting its financial exposure during the development phase.

"This is a very important point and one that is widely misunderstood. If there are any financial experts in the room, this is what we call having someone else take the risk. In other words, you use someone else's money to invest in the project and create value for your people," he said.

Slowing down

The briefing comes amid growing questions about the pace of Namibia's flagship green hydrogen project.

Committee chairperson Tobie Aupindi said: "I must also say… there seems to be now a little bit of a slowness; whether that is true or is just a perception, it's of a serious concern to us because our strategic intent and objective is to ensure that you succeed because if you succeed, Namibia succeeds economically."

He stressed that parliament's role is not only to hold stakeholders accountable but also to strengthen the legislative framework needed to support investment while ensuring broad-based economic participation.

Aupindi said the committee is particularly concerned about local content, warning that Namibians, especially previously disadvantaged black-owned enterprises, must meaningfully participate in the project's supply chain rather than being sidelined.

"We have to be very systematic and very intentional in including local people. When we say local, it's not just a Namibian-registered company, it's actually a black enterprise, because those were the people who were deprived of economic opportunities by past colonial laws," Aupindi said.

He added that parliament would continue advocating for a more inclusive economic model while working with project developers to ensure Namibia fully benefits from its emerging green hydrogen industry.

Future still green?

The parliamentary engagement follows months of speculation over the future of Namibia's green hydrogen programme after the resignation of former green hydrogen programme commissioner James Mnyupe and the expiry of the Green Hydrogen Council's mandate.

Three months ago, industry players dismissed suggestions that political support for the sector had weakened, insisting the project continued to enjoy government backing despite institutional changes.

Hyphen Hydrogen Energy's Toni Beukes told Namibian Sun that the company remained confident in the project's governance and political support.

"The Namibian green hydrogen strategy talks about Hyphen as the first sort of catalyst project in the first green hydrogen valley, which is the Southern Corridor Development Initiative," she said.

"There is a lot happening in the background... all of that should tell you that we are not concerned about political support, because it is there."

Beukes acknowledged that the restructuring of government had slowed decision-making but said it had not affected the project's overall momentum.

"Naturally there is a bit of a slowdown in movement, but certainly not at a worrying level or at a level where we are not enjoying support from our ministries," she said.

nikanor@nmh-hub.com.na