TABBY MOYO
When Johannes Michels, co-founder and Managing Director of the HyIron-Oshivela project, started planning a pioneering green iron project in Namibia, aiming to produce iron with zero carbon emissions utilising green hydrogen and solar energy, many dismissed his plan as a mere pipedream.
About a year ago when Michels and his team started constructing the green iron plant outside Arandis, he was told it was impossible to pioneer such a project in country like Namibia which is not industrialised. One year later, with the help of 400 dedicated people who put in 10 000 hours into making the project a reality, the dream has come true.
Industrialisation and the decarbonisation of the steel industry is one of the biggest challenges in the global fight against climate change. With increasing carbon dioxide (CO2) and energy prices, the steel industry needs to develop climate-friendly technologies and value chains. HyIron, a partnership between Namibian and German companies, has developed a technology to effectively address this challenge by producing iron at zero emissions.
With support from the German Federal Ministry for Economic Affairs and Climate Action (BMWK), HyIron has built the world’s first industrial-scale green iron production plant.
On Friday 11 April, President Netumbo Nandi-Ndaitwah and guests from as far as Australia, Japan and all over Europe, converged at the HyIron site near Arandis to witness the inauguration of the pioneering green iron production plant.
Ironically, President Nandi-Ndaitwah, who officially opened the Oshivela plant, admitted to having been very sceptic about the project.
“The introduction of the HyIron Oshivela Plant in Arandis was brought to my attention in 2023, as the then Deputy Prime Minister and Minister of International Relations and Cooperation. I recall, meeting this visionary team on the sidelines of the Heads of Missions Conference in Windhoek. At the time, the concept of a plant that would produce green iron with zero emissions in Namibia sounded like another far-fetched dream,” the head of state confessed.
“In 2024, at the Hydrogen Conference in Windhoek, the team brought me the first green iron. Today, 11 April 2025, as your Fifth President, I stand before you with excitement to inaugurate this groundbreaking facility, which solidifies the unwavering commitment and a shared vision of the HyIron project,” Nandi-Ndaitwah said.
She explained that her skepticism had been fuelled by the fact that she had met countless potential investors in her previous capacity as Minister of International Relations and Cooperation, and that she was still waiting to see these investments come to fruition.
“To potential investors, I am assuring you that Namibia is ready for business for the mutual benefit of investors and the Namibian people. For us in government, our objective is to create a conducive environment for investment for both local and foreign investors. Therefore, I call upon other investors to follow and emulate the exemplary path of HyIron,” she said.
VALUE ADDITION, BENEFICIATION IN ACTION
The President emphasised that the Oshivela plant was not only significant because it is the world’s first industrial facility dedicated to zero-emissions iron production, but that it talks to Namibia’s national developmental agenda of value addition, natural resource beneficiation and industrialisation.
“The Oshivela plant stands as a proud Namibian achievement and reflects notable synergies between Namibia and its international partners. It is the culmination of strategic investments, homegrown innovation, and global collaboration involving various companies around the globe where components and or parts of the plant were supplied from the European Union, the United States of America, China, Japan and Great Britain amongst others.
“Beyond its role in steel production, the Oshivela plant is a powerful reminder of what can be achieved when visionary leadership, international cooperation, and local talent come together,” Nandi-Ndaitwah said.
The partners in the project invested approximately N$600 million to fund Oshivela.
Deputy Prime Minister and Minister of Industries, Mines and Energy, Natangwe Ithete, said Namibia has taken a bold and forward-thinking step to invest in clean technology and develop low to zero-carbon industrial models.
“Our approach focuses on building sustainable industrial clusters that not only reduce emissions but also respond to new global trade trends, where carbon-heavy products are increasingly being taxed or restricted. Clean energy is now becoming a key advantage. Countries around the world are beginning to favor goods made with renewable energy. By producing such goods, Namibia can stay ahead of international regulations and gain a competitive edge in global markets,” Ithete said.
He said the HyIron Oshivela project was a perfect example of this strategy in action.
ABUNDANT CLEAN ENERGY RESOURCES
“It represents a new wave of industrial development where businesses are investing in Namibia to take leverage on our abundant clean energy resources. By developing industries close to renewable energy sources, we reduce both production and transportation costs, and most importantly, we cut emissions significantly. This model of industrialisation helps Namibia leapfrog older, carbon-heavy development paths and positions us as a leader in sustainable industry,” the Energy Minister said.
Head of the Namibia Green Hydrogen Programme (NGHP), James Mnyupe, explained that the HyIron plant features a 25 megawatt solar plant, with industrial scale battery storage which will power the electrolysers ensuring a consistent production of iron ore. The 12 megawatts of alkaline electrolysers will produce green hydrogen that will be stored in tanks and pumped into the kiln where the iron ore will be introduced and reduced by the hydrogen to produce direct reduced iron (DRI), a key component in steel production.
Mnyupe paid tribute to the Namibian government for supporting the HyIron project and revealed that partners from as far as Japan had already showed willingness to buy the green steel from the Namibian plant and use it in the production of green cars.
European Union Ambassador to Namibia, Ana Beatriz Martins, described the opening of HyIron Oshivela as a “milestone in Namibia’s path towards green industrialisation and indeed a milestone in Africa”.
“This achievement is fruit of the bold vision of Namibia’s political leadership that decided to lead the way on green industrialisation with its rich renewable resources, reaping the benefits for its economic growth and creation of quality jobs. It is also a testament of Namibia’s entrepreneurial talent and resolve, which recognises the opportunities of translating policy visions into concrete business actions,” said Martins.
EU SUPPORT INSTRUMENTAL
The EU Ambassador said Germany had been instrumental in supporting HyIron with grant money in its experimental phase. The EU and The Netherlands will be joining as partners in Phase Two of the HyIron project with a €12.9 (about N$258 million) grant contribution to Namibia’s SDG1 Fund.
She said HyIron’s prospective offtake agreements with leading European and Asian manufacturing companies are clear sign that there was a market for green iron.
Martins said there were currently about seven European companies that were exploring investments in Namibia’s Green Hydrogen economy, with a prospected investment pipeline exceeding €20 billion (about N$430 billion). HyIron and Cleanergy are among the first to complete their first pilot phase. Other businesses involving European capital and technology, such as Zhero and Hyphen, are expected to reach Final Investment Decision by the end of next year.
Rainer Baake, the German government Special Envoy to Namibia on Green Hydrogen, said when he was first approached by Michels in June 2022 to introduce the HyIron project, he was skeptical.
“My first question was: ‘Where is the water coming from?’. Electrolysers need water, and we were far from the coast’,” Baake recalled.
But Michels assured him that they had invented a technology that recycles water and would not need a permanent external supply.
“I thought that was ingenious. Upon returning to Germany, I told the leadership of our Ministry that if our technical experts agree this works, I strongly recommend we support it, because this project has great potential. Just a few months later, in December 2022, when Minister Habeck visited Namibia, he handed over a cheque of €13.7 million (about N$294.5 million) to HyIron Oshivela to help get this project off the ground,” Baake said.
CHEAPER THAN GERMANY
He said it was far cheaper to produce green iron in Namibia than in Germany, as Namibia had exceptional solar irradiation which enabled it to produce cheap clean electricity.
“Just to compare: Phase I of this project already produces green hydrogen at less than €2 per kilogram. In Phase II, HyIron expects to reduce that to below €1 per kilogram. In Germany, we estimate that by 2030, green hydrogen will still cost €5 to €9 per kilogram. So, ask yourself: Where will the world’s future green iron be produced?” Baake asked.
German Ambassador to Namibia, Thorsten Hutter, said his country’s development cooperation with Namibia was focused on climate change mitigation and includes activities across multiple sectors: renewable energy, energy access, energy storage, energy policy, and of course, green hydrogen.
“From now on, Namibia produces direct reduced iron without CO₂ emissions, on an industrial scale. HyIron is a frontrunner in establishing this new standard and technology globally, and importantly, this green direct-reduced iron is globally competitive. Already by the end of 2023, HyIron had secured its first offtake agreement with the German automotive company Benteler, which aims to purchase 200 000 tons of this material,” Ambassador Hutter said.
He said HyIron demonstrates that real value addition in Namibia is achievable, creating jobs, income, and industrial opportunity. Beyond this, green hydrogen presents even more opportunities for Namibia’s green industrialisation.
Neville Andre, Governor of the Erongo region, where the Oshivela project is situated, said Green Hydrogen was already reshaping Namibia’s economic landscape. “Our communities are witnessing firsthand how green hydrogen can drive progress, empowering youth, uplifting local enterprises, and positioning Namibia as a global leader in the green energy revolution,” Andre said.
