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Home / Diversification on cards as GH gains traction 

Diversification on cards as GH gains traction 

2023-11-08  Staff Reporter

Diversification on cards as GH gains traction 

Namibia’s much-hyped green hydrogen project, driven by Hyphen Hydrogen Energy, represents the first step in the establishment of a thriving synthetic fuels industry and other sustainable industries. 

These developments are expected to greatly contribute to the diversification of the domestic economy and create employment opportunities across the country. 

This clarity was provided on Monday by the Namibia Green Hydrogen Programme (NGHP), including additional detail on the tender and award process for the Southern Corridor Development Initiative (SCDI). 

“The tender process of the SCDI and the development of renewable energy and green hydrogen in the //Kharas region was conducted with the utmost transparency and fairness. This clarification is considered necessary in response to instances of misunderstanding, repeated requests for clarification and instances of incorrect reporting surrounding the RfP (Request for Proposal) process initiated by the Government of the Republic of Namibia (GRN),” reads a statement from the NGHP.  

This tender process resulted in the announcement of Hyphen Hydrogen Energy being confirmed as the preferred bidder on 3 November 2021. 

According to the NGHP, this clarification is considered necessary – not only in respect of the first RfP, but the possible release of a future second RfP (at a time to be determined) to demonstrate that openness and transparency were at the heart of the SCDI bidding process and will be for any future proposals. 

Meanwhile, alongside the RfP process on 2 September 2021, the Namibia Green Hydrogen Research Institute was established within the University of Namibia. 

This institute has secured a number of national and international partners to drive green hydrogen research in the country and now serves as a research and capacity-building hub. 

Moreover, following a technical evaluation, two bidders met the criteria to proceed to the evaluation of their financial proposals, which were opened on 18 October 2021. 

The financial evaluation was conducted in two stages, with a focus on financial compliance and completeness of information supplied by bidders. Following a rigorous technical evaluation, a financial compliance assessment and evaluation were conducted on the shortlisted compliant bidders. 

In November 2021, the outcome and government’s decision were announced at COP26 in Glasgow, Scotland. 

Following the award to Hyphen, a customary standstill period of seven days was observed to provide any bidder an opportunity to challenge the award. 

No challenges were received – and on the contrary, many of the unsuccessful bidders congratulated government for a professional and transparent bidding process. 

“The NGHP emphasises that the RfP crafting, evaluation and award process was conducted in strict adherence to the criteria specified in the RfP Bid Document, and in line with the spirit of the Public Procurement Process and the Namibian Constitution,” read the NGHP statement.  

Currently, the process has resulted in an 18-month post-award negotiation with Hyphen Hydrogen, which resulted in the execution of a feasibility and implementation agreement. 

This was signed between Hyphen Hydrogen and government in May this year. 

The NGHP is mandated to assist GRN in ensuring the feasibility and success of the green hydrogen project. 

2023-11-08  Staff Reporter

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