Namibia Secures US$3.6 Million for Green Fertiliser Project
Namibia · AGRICULTURE
Key Facts
- —What happened SDG Namibia One committed up to US$3.6 million in development funding for the Dâures Green Fertiliser Project in the Erongo Region.
- —How big The total development budget is about US$7.07 million, with SDG Namibia One acting as co-developer alongside Enersense Energy Namibia.
- —The target The project aims to produce up to 20,000 tonnes per year of green ammonia and 80,000 tonnes per year of ammonium sulphate fertiliser.
- —The timeline Financial close is targeted for the second quarter of 2028, with commercial operations starting in the first quarter of 2030.
- —Why it matters Southern Africa produces only about 7 percent of the fertiliser it consumes, making local production strategically important for food security.
Namibia has secured up to US$3.6 million in development funding to advance the Dâures Green Fertiliser Project, a green hydrogen–based initiative targeting local and regional agricultural markets.
Namibia has secured up to US$3.6 million in development funding for the Dâures Green Fertiliser Project in the Erongo Region. The funding comes from SDG Namibia One, part of Climate Fund Managers’ Climate Investor Three fund, under the European Union’s Global Gateway strategy and Dutch development financier Invest International.
A green fertiliser project with European backing
SDG Namibia One will provide up to US$3.6 million toward a total development budget of about US$7.07 million. The fund will act as co-developer alongside Enersense Energy Namibia.
A parallel announcement by Namibia’s press agency NAMPA puts the commitment at N$60 million (about US$3.4 million), roughly the same magnitude depending on exchange rates. The project is designed to use solar and wind power to produce green hydrogen, then green ammonia, and finally low-carbon ammonium sulphate fertiliser.
Target output is up to 20,000 tonnes per year of green ammonia and 80,000 tonnes per year of ammonium sulphate fertiliser. Financial close is targeted for the second quarter of 2028, with commercial operations in the first quarter of 2030.
Pilot production starts sooner
A pilot facility at the Dâures Green Hydrogen Village is expected to produce Namibia’s first locally manufactured green fertiliser by the fourth quarter of 2026. Earlier pilot capacities are in the 100 to 400 tonne per year range.
To date, around US$17.7 million has been mobilised for pilot and proof-of-concept activities. This includes funding from the German Federal Ministry of Education and Research, the United Nations Industrial Development Organization, the UK government, and Enersense.
The pilot phase is critical because it tests the full production chain before the larger commercial plant is built. Namibia wants to prove the technology works at small scale first.
Why fertiliser matters for Southern Africa
Southern Africa produces only about 7 percent of the fertiliser it consumes. This makes local production in Namibia strategically significant for food security, import reduction and agricultural value chains.
South Africa and other net-importing neighbours would benefit from a reliable regional supply. The project could reduce dependence on fertiliser shipped from outside the continent.
For Namibia, the project also creates a new industrial sector around green hydrogen. It positions the country as an early mover in low-carbon fertiliser production.
The great-power competition angle
This situates Namibia within a wider competition over green hydrogen and fertiliser supply chains. The European Union, Germany and the UK use climate finance and Global Gateway to secure low-carbon ammonia and fertiliser sources.
The strategy aims to counterbalance Chinese and Gulf energy influence in Africa. Namibia’s green hydrogen potential has drawn attention from multiple global powers seeking clean energy partnerships.
Read more about this dynamic in our pillar on Africa: The New Scramble.
Who gains and who loses
Namibian farmers stand to gain from locally produced fertiliser at potentially lower cost. The agricultural sector could become more resilient with a domestic supply chain.
Enersense Energy Namibia gains a well-funded co-developer and access to European climate finance. SDG Namibia One gains a flagship project in its portfolio.
Importers of fertiliser into Southern Africa could face new competition. But the project’s 80,000 tonnes per year target is modest compared with regional demand.
What to watch next
The next milestone is the pilot facility producing Namibia’s first locally manufactured green fertiliser by the fourth quarter of 2026. Investors will watch whether the pilot meets its technical targets.
Financial close for the commercial plant is targeted for the second quarter of 2028. Commercial operations are planned for the first quarter of 2030.
The project’s success could attract more climate finance into Namibia’s green hydrogen sector. It may also encourage similar projects elsewhere in Southern Africa.
Frequently Asked Questions
How much funding has Namibia secured for the Dâures Green Fertiliser Project?
SDG Namibia One committed up to US$3.6 million in development funding, part of a total development budget of about US$7.07 million.
When will the Dâures Green Fertiliser Project start commercial operations?
Commercial operations are targeted for the first quarter of 2030, with financial close expected in the second quarter of 2028.
What will the Dâures Green Fertiliser Project produce?
The project aims to produce up to 20,000 tonnes per year of green ammonia and 80,000 tonnes per year of ammonium sulphate fertiliser using solar and wind power.
Connected Coverage
Sources
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times