The usually sleepy harbour town of Lüderitz is abuzz with new developments linked to oil and gas discoveries.
This is combined with the promise of a flourishing green hydrogen industry, but now the town faces expansion challenges. This is as new investors are rushing to capitalise on the emerging sectors.
“Town expansion is taking a lot of our attention, but it is soon coming to a final stage so that we can accommodate those interested parties that have already applied. A lot has been put on hold because investors demand a large portion of land, which we don’t have,” said the mayor of Lüderitz, Phillippus Balhao.
Speaking at the second edition of the Namibia Oil and Gas Conference that concluded yesterday in Windhoek, Balhao said Lüderitz is undergoing significant and unprecedented expansion to accommodate emerging sectors, particularly in the green hydrogen, and oil and gas industries. This industrial awakening is driven by substantial investments and an anticipated economic growth spurt associated with these sectors.
The harbour town is slated to become a key hub for green hydrogen generation, with plans to build one of the world’s largest reactors that aims to produce 300 000 tonnes of green hydrogen per year. This is expected to greatly boost Namibia’s economy and create thousands of direct and indirect jobs. The plant’s construction is slated to begin in 2025, and will initially require an estimated workforce of
15 000 during the construction phase.
Balhao added that since the announcement of these emerging sectors, the general mood in Lüderitz has changed, as businesses and the community focus on diversifying the economy beyond fishing, which has traditionally dominated its economic landscape.
“Since the announcement, a lot has been happening in town as the town was a bit sleepy. It is a revitalisation of the town’s economy. We have a proper plan and it is only a matter of implementation. I am happy to note that many local companies grabbed these opportunities and have started partnering with multinationals,” the mayor said.
Also at the conference, the port engineering executive from the Namibia Ports Authority (Namport), Elzevir Gelderbloem, said both the Walvis Bay and Lüderitz ports are reaching capacity.
“This is without the emerging sectors, thus the urgency to develop them as soon as possible. We intend to double capacity in Lüderitz in five years’ time as the Orange Basin discoveries will be accommodated by the port in Lüderitz. We intend construction to kick off next year,” he said.
Capacity
Meanwhile, Maggy Shino, the petroleum commissioner, said Namibia presently has approximately 45% capability to provide services for the burgeoning oil and gas sector.
During her presentation at the conference, she noted the government is hard at work to ensure locals get to play a meaningful role in the emerging sectors.
“The idea is for us to make sure that Namibia takes part in the entire value chain in the sector,” said Shino.
She added that all stakeholders are analysing data on recent oil and gas discoveries, with final investment decisions expected in 2025. Shino said this timeline underscores the urgency to adopt adequate laws and policies to ensure Namibia reaps real benefits from these resources.
The recent oil and gas discoveries in the Orange Basin have been driving new opportunities and hold potential for domestic economic growth, with significant investment across the spectrum.