SDG Namibia One Fund has signed a Development Funding Agreement with Zhero Europe to advance the Zhero Molecules Walvis Bay Project, a groundbreaking industrial-scale green ammonia facility near Walvis Bay in the Erongo Region. The announcement was made today, marking a significant milestone for Namibia’s green hydrogen ambitions.
The fund, managed by Climate Fund Managers in partnership with Invest International and the Environmental Investment Fund of Namibia, has committed up to USD 5.15 million in development funding. This capital injection will enable Zhero to complete critical development and feasibility activities required to progress toward a final investment decision, targeted for 2027, with commercial operations expected by 2030.
Once operational, the facility is projected to produce 500,000 tonnes of green ammonia annually, avoiding approximately 1.2 million tonnes of CO₂ emissions each year. The project represents more than just environmental progress; it promises substantial socio-economic benefits for Namibia, including approximately 6,000 jobs during construction and around 500 permanent positions. Local businesses and service providers across the value chain will also benefit from new opportunities generated by the project.
The ambitious project will be powered by an integrated renewable energy system comprising 3 GW of solar PV, 2.2 GWh of battery energy storage, a 1.6 GW electrolyser system, and 110 km of new transmission infrastructure. A desalination plant is also planned to address the project’s water supply needs. The green ammonia produced is expected to serve global decarbonization markets, including fertilizers, maritime fuels, and industrial feedstocks.
Darron Johnson, Regional Head of Africa at Climate Fund Managers, highlighted the project’s strategic advantages, noting that the site benefits from exceptional solar resources, ample land, and direct access to deep-water export infrastructure at Walvis Bay. He emphasized that the fund’s blended finance structure provides early-stage development capital needed to de-risk the project and prepare it for financial close, creating conditions for private capital to invest at scale during the construction phase.
European Commissioner for International Partnerships, Jozef Síkela, expressed strong support for the initiative, noting during his mission to Namibia that he saw firsthand how Global Gateway cooperation in renewable energy can translate into real industrial value, creating thousands of jobs while supporting Europe’s decarbonization efforts.
Source: namibiaoilandgas.com