HyIron, Africa's First Green Iron Plant
In a groundbreaking move for Namibia and Africa, Namibia Hydrogen Fund Managers (Nam-H2 Fund Managers) has signed a Development Funding Agreement with green iron developer HyIron. This partnership will fast-track HyIron’s Oshivela Project, the continent’s first climate-neutral iron plant, leveraging green hydrogen to tackle the notoriously hard-to-abate emissions of the iron and steel sector. The plant, located in Namibia’s Erongo Region, aims to prevent 3.6 million tonnes of CO₂ emissions annually and promises significant economic impact, including the creation of approximately 900 permanent and 6,000 construction jobs.
The Oshivela Project, a collaboration between Namibian and German renewable energy experts, introduces a pioneering technology that substitutes traditional fossil fuel-based iron reduction with green hydrogen. By using green hydrogen as a reducing agent in a rotary kiln, HyIron’s process achieves a fully carbon-neutral Direct Reduced Iron (DRI), representing a critical step toward decarbonizing the global steel industry. This initiative follows the successful pilot at the TS Elino laboratory in Germany, which concluded in 2023.
HyIron’s Managing Director, Johannes Michels, emphasized the urgency of this innovation, noting the iron and steel sector's contribution to 9% of global greenhouse gas emissions. “By harnessing green hydrogen, we demonstrate that iron can now be produced in a way that dramatically reduces emissions while also making economic sense,” said Michels. “Our partnership with Nam-H2 Fund Managers, who bring local expertise and emerging market experience, will help scale this technology to deliver sustainable, carbon-neutral iron to the global market.”
Nam-H2 Fund Managers, managing the SDG Namibia One Fund with a $1 billion target, sees this partnership as key to Namibia’s Green Industrialisation Plan. Mercia Geises, CEO of Nam-H2 Fund Managers, expressed optimism about the project’s broader impact. “HyIron’s Oshivela Project is a groundbreaking initiative that significantly reduces the carbon footprint of heavy industry, positioning Namibia as a globally competitive exporter of green iron,” said Geises. “We believe this project will set a precedent for reforming the global steel industry.”
The Oshivela Plant’s commissioning in Q4 2024 will initially produce 15,000 tonnes of green DRI annually, reducing Namibia’s industrial CO₂ emissions by 27,000 tonnes per year. The project’s expansion, co-funded by SDG Namibia One, is planned in phases, with a production capacity goal of up to 2 million tonnes of green DRI per annum in the coming years.
This landmark agreement aligns Namibia with global green hydrogen leaders and supports sustainable industrial development, establishing Namibia as a significant player in the global green economy. The project is backed by prominent international investors, including the European Commission, Dutch development financier Invest International, and USAID Southern Africa Mobilizing Investment.
As Africa's first green iron plant, the Oshivela Project marks a transformative moment for Namibia's industrial sector, showcasing the nation’s commitment to climate-conscious innovation. With bold targets and a sustainable approach, Namibia is paving the way for the future of green steel production on the continent.
