Govt in quandary as ammonia production kicks off without law
The absence of a gas law to regulate the transportation of green ammonia, which is on the verge of being produced at the Daures Green Hydrogen Village, will highly likely force government to use the Petroleum Act as the new industry’s interim regime.
Executive director in the mines and energy ministry Penda Ithindi noted that it is not entirely accurate to suggest that the country has no legislative tool to regulate ammonia. The Petroleum Act, currently under review for amendment, deals with energy-related transportation - including green ammonia, although this is not explicitly stated, he noted.
Questions sent to green hydrogen commissioner James Mnyupe, green hydrogen council chairperson Obeth Kandjoze and energy minister Tom Alweendo went unanswered, as did those sent to petroleum commissioner Maggy Shino.
Absence of legislation
Ministry insiders told Namibian Sun that there is currently no policy in place - despite some structures having been proposed on how green hydrogen products should be handled in the long run.
The absence of this crucial legislation was discussed during a joint meeting between the parliamentary standing committees of natural resources and economics and public administration.
Natural resources committee chairperson Tjekero Tweya said even if they are concerned about the matter, the onus is on the executive and the ministry to ensure proper legislation is in place before the project takes off.
“The procedures are very clear. The executive - in terms of the constitution - initiates any bills to take to parliament and if nothing happens, then we have private members bills or we can talk to the respective ministry to initiate it,” he said.
“In this case, the pressure is on the executive to take the initiative and bring the bill to parliament. We haven't consulted with the minister. You can put the pressure on the minister, but in the absence of a law, they might opt for a policy to make provision in the interim,” he said.
Output
Kandjoze recently announced that the Daures project is expected to generate an annual output of up to 100 tonnes of green ammonia and more than 400 tonnes of green tomatoes during its pilot phase.
According to Ammonia Energy Association, the Daures consortium has already signed an off-take agreement with Zimbabwe-based Sable Chemicals, who will use the ammonia for the production of ammonium nitrate fertiliser.
It is not clear at this point whether this agreement will benefit from the first 100-tonne batch expected by July.
It is also expected that the Daures project will manufacture and export up to 700 000 tonnes of green ammonia by 2030, as it reaches its fourth phase.
Daures is among four green hydrogen projects being carried out in Namibia.
Meanwhile, the ministry is currently finalising the Electricity Control Board bill, and this could be tabled in parliament for review to expand its mandate to regulate non-electricity energy sources such as oil and gas.
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Executive director in the mines and energy ministry Penda Ithindi noted that it is not entirely accurate to suggest that the country has no legislative tool to regulate ammonia. The Petroleum Act, currently under review for amendment, deals with energy-related transportation - including green ammonia, although this is not explicitly stated, he noted.
Questions sent to green hydrogen commissioner James Mnyupe, green hydrogen council chairperson Obeth Kandjoze and energy minister Tom Alweendo went unanswered, as did those sent to petroleum commissioner Maggy Shino.
Absence of legislation
Ministry insiders told Namibian Sun that there is currently no policy in place - despite some structures having been proposed on how green hydrogen products should be handled in the long run.
The absence of this crucial legislation was discussed during a joint meeting between the parliamentary standing committees of natural resources and economics and public administration.
Natural resources committee chairperson Tjekero Tweya said even if they are concerned about the matter, the onus is on the executive and the ministry to ensure proper legislation is in place before the project takes off.
“The procedures are very clear. The executive - in terms of the constitution - initiates any bills to take to parliament and if nothing happens, then we have private members bills or we can talk to the respective ministry to initiate it,” he said.
“In this case, the pressure is on the executive to take the initiative and bring the bill to parliament. We haven't consulted with the minister. You can put the pressure on the minister, but in the absence of a law, they might opt for a policy to make provision in the interim,” he said.
Output
Kandjoze recently announced that the Daures project is expected to generate an annual output of up to 100 tonnes of green ammonia and more than 400 tonnes of green tomatoes during its pilot phase.
According to Ammonia Energy Association, the Daures consortium has already signed an off-take agreement with Zimbabwe-based Sable Chemicals, who will use the ammonia for the production of ammonium nitrate fertiliser.
It is not clear at this point whether this agreement will benefit from the first 100-tonne batch expected by July.
It is also expected that the Daures project will manufacture and export up to 700 000 tonnes of green ammonia by 2030, as it reaches its fourth phase.
Daures is among four green hydrogen projects being carried out in Namibia.
Meanwhile, the ministry is currently finalising the Electricity Control Board bill, and this could be tabled in parliament for review to expand its mandate to regulate non-electricity energy sources such as oil and gas.
[email protected]
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