The EU has pledged EUR 1.3 billion to support Namibia’s clean energy projects and the local processing of critical raw materials, Bloomberg reported on Thursday.
The funding, which falls under the EU’s Global Gateway initiative, is aimed at boosting Namibia’s green hydrogen and ammonia production, as well as infrastructure such as transport networks, electricity grids, port facilities and vocational training.
The EU expects the grants and loans to unlock over USD 23 billion in private investment, Bloomberg said.
The partnership underlines the EU’s ambition to source green hydrogen from Namibia for its own energy transition goals. However, green hydrogen remains reliant on subsidies due to the high costs of renewable energy and electrolyser technology.
“We aim to build a partnership that benefits both Namibia and Europe,” the EU said in a statement.
The EU also confirmed plans to support Namibia in developing refining capacity for its critical minerals.
The EU is a political and economic union of 27 member states and a leading global investor in infrastructure and energy transition projects. Through its Global Gateway initiative, it seeks to mobilise EUR 300 billion in investments globally by 2027, with a focus on sustainable and strategic sectors.
Namibia, located in southern Africa, has positioned itself as a future hub for green hydrogen and critical minerals. The government has signed multiple agreements with international investors to develop export-oriented clean energy infrastructure.
Namibia hosts a range of critical minerals, including lithium, cobalt, manganese, graphite and rare earth elements such as dysprosium and terbium, alongside significant uranium and copper reserves. These resources are essential for technologies like electric vehicle batteries, renewable energy systems and nuclear power, and the government has prioritised them for domestic processing and value addition.
Source: theenergyyear.com