RWE Exits Namibian Green Hydrogen Project, but Long-Term Plans Unchanged
Energy giant RWE has withdrawn from a planned 'green hydrogen' project in Namibia, potentially losing a significant customer in the short term. Despite this setback, the project's long-term development remains unaffected, with Hyphen Hydrogen Energy and Enertrag still involved in its management.
The project, aiming to produce around one million tons of green ammonia annually for export by 2027, was initially set to supply RWE with up to 300,000 tons of 'green ammonia' per year. However, RWE's withdrawal at the end of September 2025 has left the future of this supply uncertain.
Despite the loss of RWE, the Namibian government has selected Hyphen Hydrogen Energy, with Enertrag involved, to develop this 'green hydrogen project'. The demand for green hydrogen and its derivatives in Europe and Asia is expected to continue rising, although the demand in Europe is developing more slowly than initially expected. Green hydrogen is set to supply electricity in new gas power plants and be used in blast furnaces for steel production.
Although RWE's withdrawal from the Namibian green hydrogen project is a short-term setback, the project's long-term development remains on track. With Hyphen Hydrogen Energy and Enertrag still involved, and the global demand for green hydrogen continuing to rise, the project's future looks promising. The search for new financing partners is ongoing, with no clear indications yet of other companies stepping in to replace RWE.
