German Energy Giant RWE Withdraws from $10 Billion Green Ammonia Project in Namibia
The German energy provider RWE has decided to pull out of the massive Hyphen green ammonia project in Namibia, a $10 billion investment. This move is a significant setback for the country's and the continent's renewable energy development ambitions.
RWE had signed a preliminary, non-binding agreement with Hyphen in 2022 to purchase approximately 300,000 tons of ammonia per year starting from 2027. This withdrawal highlights how some companies are reevaluating their costly bets on emerging technologies.
This is a critical blow to the country, which has recently been downgraded to a lower-middle-income country due to recent budgetary tensions. To recover, the government has set an ambitious 7% growth target, largely relying on green hydrogen and renewable energy. Hyphen was at the core of this vision, with one of its flagship promises being job creation: 15,000 jobs during the construction phase and 3,000 permanent jobs, as part of a broader plan to create 30,000 green jobs by 2030.
This withdrawal is particularly damaging, as without a major client like RWE, Namibia may struggle to attract financing, secure purchase agreements, and meet its green energy targets. The risk extends beyond job and revenue losses to a loss of investor confidence in the country's hydrogen strategy.
