RWE Exits Namibia's 'Green Hydrogen' Project Amidst Slower Demand
Energy giant RWE has pulled out of a planned 'hydrogen' project in Namibia. The withdrawal comes despite the project's potential to supply up to 300,000 tons of 'ammonia' to RWE annually from 2027.
The project, aiming to produce around one million tons of ammonia annually for export by 2027, faced setbacks due to slower-than-expected demand for hydrogen and its derivatives in Europe. RWE's withdrawal means a potential customer is lost in the short term for the project partner Enertrag.
Hydrogen is set to play a central role in a climate-neutral economic system, with Germany planning to obtain a large part from abroad. It was to generate electricity in new gas power plants and be used in steel production, shipping, and heavy transport. Ammonia, a derivative, can be transported by ships.
RWE's withdrawal from the Hyphen Hydrogen Energy project in Namibia is a blow to the project's immediate prospects. However, the German government, not involved in the project, maintains an energy partnership with Namibia. The demand for hydrogen and its derivatives in Europe and Asia is expected to rise in the long term.
