The Namibia-South Africa green hydrogen pipeline project is moving from conceptualization to concrete development, with a significant N$30 million investment earmarked for a conceptual master plan. This funding injection, detailed in the Namibia Green Hydrogen Mid-Year Review 2025, signals a key de-risking step for a project that holds immense potential for regional and global energy markets.
The investment follows the successful completion of a cross-border pre-feasibility study in December 2024, which validated the technical and commercial viability of a pipeline connecting hydrogen production hubs in Lüderitz, Namibia, to Boegoebaai and Saldanha Bay in South Africa. The plan also includes a potential eastern corridor extension to Gauteng, a major industrial center. This infrastructure is not merely a pipeline; it’s a strategic asset designed to anchor the region’s position in the global hydrogen value chain.
A significant portion of the N$30 million budget will be provided by key strategic partners: Climate Fund Managers and Dutch gas infrastructure giant Gasunie, with additional financial and technical support from the European Union. Their involvement underscores a strong vote of confidence in the project’s long-term returns and its alignment with global energy transition goals.
Strategic Framework and Infrastructure Development
The pipeline is a core component of Namibia’s ambitious Green Hydrogen Programme, which is systematically building the necessary ecosystem to attract and sustain large-scale investment. A parallel initiative has secured N$3.6 million from Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK) to commission a study on best practices for common-user infrastructure. This study, due to be completed by June 2025, will guide integrated planning for critical assets like desalination plants, ports, and rail networks, ensuring an efficient and cost-effective operational environment for investors.
In a move to secure future export markets, NamPort has executed Memoranda of Understanding with the Port of Rotterdam and the Port of Antwerp-Bruges. These agreements are designed to facilitate the handling and export of green ammonia and other alternative fuels, providing a clear path to market for project developers. The collaboration includes plans for a dedicated terminal at Angra Point in Lüderitz and expansion of the North Port in Walvis Bay.
Market Positioning and Investment Outlook
The project is built on a foundation of political support, with the partnership first proposed by South African President Cyril Ramaphosa in 2020. The current momentum, reinforced by Namibian Government, positions this venture as a potential flagship for the African Continental Free Trade Area (AfCFTA) agreement.
While the full development of the 2,500km pipeline is projected to require an estimated N$352.6 billion (€20 billion), the phased approach and early-stage investments are crucial for mitigating risk and attracting private capital. Namibia’s strategic location, world-class renewable energy resources, and strong governmental backing create a compelling investment proposition. By providing critical infrastructure and a clear regulatory framework, the Namibia Green Hydrogen Programme (NGH2P) is actively reducing the barrier to entry for international investors, paving the way for a new, transformative industry in Southern Africa.
