Innovative project to pioneer green fertiliser in Namibia

From the newsletter

The Dâures Green Hydrogen Village (DGHV), a landmark initiative in Namibia’s energy transition, is set to produce the country’s first carbon-free fertiliser by 2027. Backed by the United Nations Industrial Development Organization (UNIDO), the project will produce ammonium sulphate fertiliser using green hydrogen as part of the UK-funded Accelerate to Demonstrate (A2D) facility.

• Agriculture is the second-largest contributor to greenhouse gas emissions in Africa. Transitioning to low-carbon fertilisers is essential to reducing the sector’s environmental impact and building a more climate-resilient food system. 

• By producing fertilizer locally, the project could also help African nations reduce their vulnerability to global supply chain shocks—such as the recent price spikes driven by geopolitical tensions in Eastern Europe and the Middle East.

More details

• DGHV is one of the first five demonstration projects backed by the $82 million A2D Facility, which funds pilot initiatives accelerating climate innovation in developing countries. Other funded projects are based in Kenya, Nigeria, Tanzania and Nepal. The grants aim to bridge the commercialization gap in critical areas of the energy transition, including clean hydrogen, smart energy, industrial decarbonization and critical minerals.

• Recognised for its integration of green hydrogen, the DGHV is designed to create jobs, cut industrial carbon emissions, engage local communities and generate financial benefits. 

• “These first demonstration projects create scalable solutions where they are needed most, especially through knowledge transfer and, above all, strong new public-private partnerships,” said UNIDO Director General Gerd Müller during the announcement. 

• Launched in October 2024 after a two-year pilot, the Daures Green Hydrogen Village (DGHV) aims to become Africa’s first net-zero village. Located in Namibia’s largest constituency, Daures, the 15,000-hectare project focuses on green hydrogen and ammonia production, showcasing hydrogen applications, supporting a local green hydrogen economy and offering research opportunities for students.

• The project is currently in Phase 1.5 (2024–2027), with an expected output of 602 tonnes of green hydrogen per year. Upon full completion by 2032, annual production is projected to reach 121,000 tonnes, with a long-term goal of scaling to 240,000 tonnes annually.

• The production of carbon-free fertiliser through this model is a significant milestone for Namibia. It reduces dependency on costly fertiliser imports, stimulates the domestic economy and creates jobs in both the agriculture and hydrogen sectors. More broadly, it strengthens Namibia’s industrial base while fostering sustainable agriculture and economic resilience.

• Across the continent, the project offers a compelling solution to persistent fertiliser challenges. Many African nations struggle with the high cost of imported synthetic fertilisers—an issue worsened by geopolitical instability. Locally made, affordable green fertiliser could improve yields, increase food security and revolutionise farming practices continent-wide.

• The scalability of this model adds even greater promise. Countries with large agricultural sectors—such as South Africa, Kenya and Morocco—could benefit by adapting the DGHV approach. The use of renewable resources like solar and wind to power hydrogen production enhances its adaptability to other regions. If replicated successfully, the model could reduce reliance on imports and promote sustainable farming, food security and regional integration.

• But challenges remain. Scaling the DGHV model across Africa will require overcoming several significant barriers. The high upfront costs of developing green hydrogen infrastructure and fertiliser production facilities can be prohibitive, particularly in countries with limited financial resources. 

• In many regions, local supply chains for hydrogen technologies are underdeveloped and the availability of skilled labour remains a constraint. Integrating green hydrogen solutions into existing agricultural systems—often dominated by conventional practices—will also demand tailored technical assistance and farmer education.

• Support from partners like UNIDO is crucial in addressing these hurdles. As a core partner in the A2D Facility, the organisation plays a pivotal role in de-risking early-stage investments. By providing funding, technical expertise and risk-reduction mechanisms, it helps attract private sector participation in regions where investment risks are high, such as Africa. This early backing not only builds investor confidence but also establishes a strong foundation for scaling green hydrogen solutions across the continent.

• Equally vital is the need for strong political and regulatory support. Governments must provide clear incentives, implement enabling policies and foster collaborative ecosystems between public institutions and private actors to sustain and scale such initiatives. 

• Regional collaboration will also be essential. As one country adopts and refines the DGHV model, neighbouring nations can benefit from shared knowledge, joint ventures and pooled resources—turning this project into a blueprint for broader agricultural and industrial transformation across Africa.

Our take

• The DGHV project is more than a local innovation—it’s a scalable blueprint for transforming African agriculture and industry. If widely adopted, this approach could drive food security, climate resilience and economic independence.

• While challenges exist, the DGHV project’s potential to drive economic growth, enhance food security and reduce Africa’s agricultural carbon footprint makes it a critical step toward a sustainable and resilient future for the continent.

• The Namibia project is a promising step in Africa’s green transition, offering both environmental and economic benefits. However, scaling such initiatives will require addressing challenges like infrastructure, funding and regulatory support.