German utility RWE has withdrawn from Namibia’s USD 10-billion Hyphen green hydrogen and green ammonia project, Reuters reported on Monday.
RWE had signed a preliminary MoU in 2022 to take delivery of 300,000 tonnes per year (tpy) of green ammonia starting from Hyphen’s planned operational startup in 2027, but has pulled back in a recalibration of its investment priorities. RWE’s MoU with Hyphen did not include a binding offtake agreement.
The company attributed its decision to lower-than-expected demand projections for hydrogen and derivatives such as ammonia in Europe, leading also to a review of related projects.
RWE recently expressed its wish to exit the Centre Manche 2 (AO8) wind project offshore Normandy, the largest renewables development to be undertaken in France. RWE won the tender in consortium with TotalEnergies in September 2025.
“We can confirm that RWE is currently not pursuing any further projects in Namibia,” the company said in a statement to Reuters. “Against this backdrop, we have reviewed the relevant projects at RWE. This included the project with Hyphen in Namibia.”
Located near the town of Lüderitz in southwestern Namibia, the Hyphen project plans to deliver a total of 7.5 GW in renewables and 3 GW in electrolyser capacity in two development phases. Its expected ammonia output is 1 million tpy by 2028 and an additional 1 million tpy by 2030.
Hyphen is being led by renewables company Enertag as the controlling shareholder, together with investment and project development firm Nicholas Holding and the government of Namibia.
Source: Theenergyyear.com