Namibia has secured a major financial boost for its emerging green energy industry after the Green Climate Fund (GCF) approved US$56 million, equivalent to approximately N$1 billion, for green hydrogen and industrial decarbonisation projects.

The funding forms part of a larger US$140 million financing package for Namibia and South Africa, approved at the Green Climate Fund's 46th Board meeting in South Korea.

Namibia's allocation will be channelled through the SDG Namibia One Fund, which supports the development of major clean-energy and industrial projects.

Of the US$56 million allocated to Namibia, US$15 million will support early-stage project development, while another US$41 million will provide equity financing to help projects progress towards construction.

Four projects have already signed development funding agreements with the fund. They include the Hyphen green hydrogen project, HyIron's Oshivela green iron initiative, Zhero Molecules' Walvis Bay green ammonia project and the Dâures green fertiliser project.

The wider Southern African Industrial Decarbonisation Facility aims to mobilise US$1.2 billion in public and private investment across Namibia and South Africa.

Environmental Investment Fund of Namibia chief executive Benedict Libanda said the financing could help strengthen industrial development, create employment and increase Namibian participation in the emerging green hydrogen sector.

The funding represents an important opportunity for Namibia to attract international investors and develop new industries around renewable energy and low-carbon manufacturing.

However, the financing is intended to support project development and construction; it does not mean that all four projects are already operational.