There has been no more controversial topic and dilemma in Namibia than green hydrogen. This has just demonstrated that literacy levels around science and topics around the discovery of new industries are topics that need public attention in Namibia. 

It is common knowledge that science should be left to scientists, but the public needs educational programmes that help them understand better how they can benefit from such resources without being misled whatsoever.

I agree with Albert Einstein, who once said: “If you can’t explain it to a six-year-old, you don’t understand it yourself.” Although this piece has no age limit in terms of understanding, it is very crucial to seek clear, science-based understanding and avoid falling into the trap of misleading information or conspiracy theories that can cloud the truth and hinder progress for the overall Namibian economy. 

As for a Grade 8 learner, any physical science learner can describe it from a periodic table as a nonmetal, a molecule made up of two hydrogen atoms. That may sound too technical and academic, but the definition can be demystified further for public knowledge when relating to the tangible energy sources that Namibia has.

To know where Namibia fits in, you need to know what Namibia has and who and how that can benefit Namibia. The potential of green hydrogen relies on geographic location, abundant natural resources, and the market that the country has. 

Hence, things like water, solar energy, wind and hydro energy, and organic material are some of the incubators of green hydrogen. Products such as ammonia, methanol, kerosene, and iron are some of the tangible products. Namibia is not excused from the list of the potential countries that can transform its economy into an energy-based economy.

Energy switch 

Green hydrogen, from an economic viewpoint, represents a large economic opportunity. It includes the potential to promote the growth of new industries, the creation of employment opportunities, and economic expansion. Mirroring the investments in green hydrogen globally, countries like the USA, Germany, Austria, Saudi Arabia, and China have already taken a step forward towards implementing large-scale projects. This should remind the Namibians that countries that have a strong commodity balance in terms of trade and exploration of resources always have the potential to control those that do not have the economic will to explore and invest. 

Thus, countries with abundant renewable energy like Namibia can leverage the green hydrogen generation to export energy, diversify their economy, and lower their dependency on fossil fuels from countries like South Africa. 

The Namibian economy relies on the extraction and processing of minerals. From the industry set up throughout to its value chain, green hydrogen has the potential to accommodate micro small medium enterprises. 

Based on the current statistics, there are almost 40 000 small and medium enterprises currently registered in Namibia that contribute to the national economy of Namibia in various ways: employment creation and generation (to about 160 000 people), adding value to the national GDP.

Additionally, represents approximately one-third of the nation’s workforce. This can happen in the form of sustainable opportunities such as catering businesses, security, and renovation. Value addition can also fit in on products such as ammonia, and fertiliser, and in boosting the green schemes. In a developed economy like that of the United States of America, small business is considered the job creators and major contributors to the national wealth creation of the US economy. The line ministries, such as the Ministry of Industrialisation and Trade, the Ministry of Finance and Public Enterprise, and the Ministry of Mines and Energy, need to make sure that they merge their framework and strategic plan to come up with the right formula that will bring about the realisation of such benefit to the public. 

SDG’s alignment 

As per the sustainable development goal that Namibia subscribes to, green hydrogen has a significant potential role in supporting the globe in culminating decarbonisation goals/net zero emissions by 2050 as well as in limiting the global phenomenon to about 1.5 degrees Celsius. 

Being a role player will be advantageous to Namibia as it stimulates Namibia at home by not succumbing to carbon tax/levies from international players, as it will have more export products that are carbon-free. 

The disposable income to be generated and dividends that local entities will make can be injected back into the economy. 

In light of the green hydrogen contribution to the economy, it is also worth highlighting that regardless of whether the country’s GDP will be better in one way or the other. But if the wealth of the country is not well distributed, challenges around inequality gaps, unemployment, a polarised labour market, and poverty will remain a partial issue, where the public will take it negatively.

Therefore, as the saying goes that “You cannot improve what you cannot measure,” there is a lot of infodemic and disinformation that do not need to be caricatured into a hydrogen monster that does not exist. Finally, a new path for large-scale green hydrogen energy projects requires scholars, local community engagement, and streamlining bureaucracy to ensure the local benefit.

*Tio Nakasole is an economics honours degree holder, an MBA final student and a research analyst at MONASA Advisory and Associates. The views expressed do not represent those of his employer.