SDG Namibia One, a part of Climate Fund Managers’ Climate Investor Three Fund, has entered into a Development Funding Agreement with Enersense Energy Namibia, to advance the development of the Dâures Green Fertiliser Project with a financial injection of US$3.6 million (about N$58.5 million).
Enersense Energy Namibia is a 100% Namibian, youth-owned energy and infrastructure company dedicated to developing, delivering and operating sustainable energy solutions that drive Namibiaʼs economic and industrial growth.
The agreement was signed during the inaugural African Green Industries Summit (AGIS) held in Swakopmund on September 9 and 10.
The Dâures Green Fertiliser Project plans a large-scale production of green ammonia and fertiliser, with up to 115 permanent jobs expected to be created. The project will use renewable energy and green hydrogen to produce low-carbon fertiliser for Namibian and regional markets, supporting agricultural productivity and food security while reducing reliance on imports.
Located in the Dâures Constituency, approximately 50 kilometres inland from the Atlantic coast, the project will harness the area’s abundant solar and wind resources to produce up to 20 000 tonnes per annum of green ammonia and up to 80 000 tonnes per annum of ammonium sulphate fertiliser.
Renewable Energy Deployment
Dedicated infrastructure comprising 60 MW of solar PV, 10 MW of wind generation and a 65 MWh battery energy storage system will provide renewable power for a 40 MW electrolysis facility to produce green hydrogen that will be converted into green ammonia and, ultimately, fertiliser.
Once operational, the project is expected to avoid approximately 48,000 tonnes of CO₂ equivalent emissions each year by displacing conventional fertiliser production using grey ammonia.
SDG Namibia One, the country’s dedicated energy transition and green hydrogen fund, is managed by Namibia Hydrogen Fund Managers, a partnership between Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia. It is a blended finance facility, combining public and private capital to support projects from early-stage development through construction and into operation.
SDG Namibia One will provide up to US$3.6 million towards the Dâures Green Fertiliser Project’s total development budget of up to US$7.07 million (about N$114.8 million) and will act as co-developer alongside Enersense Energy Namibia.
The development funding, provided by the European Union under its Global Gateway strategy and Invest International, will support critical activities including front-end engineering design, market development, permitting, environmental and social studies and the conversion of market interest into bankable offtake arrangements.
Financial close is targeted for the second quarter of 2028, with commercial operations expected in the first quarter of 2030.
Food Security
Agricultural productivity and food security are important national priorities for Namibia, where the agricultural sector is highly exposed to drought and climate variability. Fertiliser is an essential agricultural input that can help improve productivity, yet Namibia and the wider Southern African Development Community (SADC) remain heavily reliant on imports and face a significant supply deficit.
By establishing domestic production of low-carbon fertiliser, the project has the potential to reduce reliance on carbon-intensive imports and help decarbonise agricultural value chains. The project will also strengthen regional supply chains and support greater local value addition.
Dâures is expected to be one of the first commercial-scale green fertiliser projects in Southern Africa, building on the Dâures Green Hydrogen Village pilot programme developed by Enersense at the project site.
“The Dâures Green Fertiliser Project aligns strongly with Namibiaʼs green industrialisation ambitions, creating greater value from the country’s renewable resources by using green hydrogen to produce a critical agricultural input at home. By producing low-carbon fertiliser for Namibian and regional markets, the project has the potential to reduce reliance on imports, strengthen agricultural value chains and support food security. Through SDG Namibia One, we are providing the early-stage development capital and co-development support needed to progress the project towards bankability and create the conditions for private capital to invest at scale.
“We are pleased to work alongside a Namibian-owned developer to take the project from its pioneering pilot towards commercial-scale production,” said Mercia Geises, the CEO of Namibia Hydrogen Fund Managers.
Martin Nambundunga, interim CEO at Daures Green Hydrogen Village, said: “A country cannot truly be independent if it cannot feed its own people, and our farmers cannot produce enough food if we continue depending on expensive fertiliser imports. Through this partnership, we are producing fertiliser right here in the desert – using burdened, unfarmable landscapes to unlock the full potential of Namibia’s productive agricultural soils. Our goal is simple: manufacture these inputs locally to make them accessible to farmers in Namibia and beyond, create jobs, support local industries with cleaner products, and improve livelihoods.
“When our farmers can access these home-grown inputs, they can grow more food, strengthen their businesses, and help Namibia become truly food secure.”
Agricultural Development Driver
Erica Gerretsen, Director for the Green Deal and Digital agenda at the Directorate-General for International Partnerships, European Commission, said the Dâures Green Fertiliser Project was a powerful example of how green hydrogen can become a driver of agricultural development and food security.
“By using renewable energy to produce green fertiliser locally, Namibia can reduce its dependence on imports, strengthen the resilience of its agricultural sector and create new opportunities for farmers, businesses and rural communities. Dâures is an inspiring example of how green industrialisation can go hand in hand with Namibiaʼs ambitions for a more productive and food-secure future,ˮ she said.
The Dâures Green Fertiliser Project is the fourth investment made by SDG Namibia One, following investments in Hyphen, Namibiaʼs first gigawatt-scale green hydrogen project; HyIronʼs Oshivela Project, Africa’s first climate-neutral iron plant; and the Zhero Molecules Walvis Bay Project, an industrial-scale green ammonia facility.
Together, these investments demonstrate the breadth of SDG Namibia One’s mandate across the energy transition and green hydrogen value chain in Namibia, spanning green hydrogen production and downstream applications in green iron, green ammonia and fertiliser.
