RWE Exits Namibian Green Hydrogen Project, Hyphen Steps In
RWE has withdrawn from a planned 'green hydrogen' project in Namibia, where it was set to receive up to 300,000 tons of 'green ammonia' per year from 2027. This decision comes despite the growing demand for green hydrogen and its derivatives in Europe and Asia.
RWE's withdrawal will not impact the long-term development of the climate change mitigation project, as another company, Hyphen, involving German energy company Enertrag, has been selected by the Namibian government for the development of the 'green hydrogen project'. Hyphen aims to produce around one million tons of green ammonia annually for export by 2027.
Green hydrogen is seen as crucial for climate-neutral processes in various industries, including steel, chemicals, shipping, and heavy transport. It is expected to replace coke in blast furnaces for steel production and generate electricity in new gas power plants. However, the demand for green hydrogen in Europe has been slower than initially expected.
RWE's withdrawal from the Namibian project means a potential customer is lost in the short term. However, the project's development remains unaffected, with Hyphen stepping in. Germany, like many other countries, will still need to import a significant portion of its hydrogen from abroad in a climate-neutral economy.
