Kandjoze dismisses green hydrogen secrecy concerns
Public concern widespread
Green Hydrogen Council chairperson Obeth Kandjoze has allayed concerns about a lack of transparency and said all green hydrogen agreements are thoroughly reviewed by Cabinet.
Green Hydrogen Council chairperson Obeth Kandjoze says government is transparent in its hydrogen dealings and maintains that Cabinet is taken into confidence before any agreement is finalised.
Kandjoze’s comments come against claims around government’s handling of its N$192 billion green hydrogen deal signed with Hyphen Hydrogen Solutions – the largest investment for Namibia and one of the biggest in Africa.
Commentators have raised concerns over the deal amid suggestions that it is secretive.
Dismissing such concerns, Kandjoze said any agreement concluded and presented to Cabinet was fully scrutinised by a multi-sectorial team involving the council and technocrats assigned and appointed to provide input.
"As chair of that council, we go through what the submissions are to the Green Hydrogen Council. Once we reject, we send it back. If we uptake and believe that enough was done, we take it to Cabinet," he said on the sidelines of a workshop held to discuss the mid-term budget review.
All agreements entered into have been properly scrutinised, Kandjoze said.
"When at the level of project finalisation, we also have faced the same question, so please illustrate where the bottleneck of secrecy is and by who," he said.
Criticism of the deal
Institute for Public Policy Research (IPPR) executive director Graham Hopwood has cautioned government on its plan, saying it would be risky for Namibia to make such an investment while little is known about the viability of the Hyphen green hydrogen proposition. "I don't think government should exercise its option to take up a 24% [stake] until the feasibility stage of the project is completed. That would seem to be too risky," he said.
"It also depends on where government gets the loans from to pay for the 24% and what conditions apply. If the project does misfire through no fault of the government, we need to be sure that taxpayers do not end up covering the cost,” he warned.
A recent Namibian Sun editorial opined: "Too much secrecy surrounding the deal has cast a massive shadow of doubt over it. If anything, this has raised questions and generated rumours about whose hands may have been greased during the process."
The editorial emphasised that Namibians have "long accepted... that every investment in the country is accompanied by shady manoeuvres" that only benefit "those in authority and their cronies."
Landless Peoples Movement lawmaker Henny Seibeb recently took issue with the manner in which the awarding of the green hydrogen bid was announced.
"Our awareness of the government’s efforts towards adopting green hydrogen has been shaped by mainstream media coverage," he said. As an example, Seibeb said the public learned about the designation of Hyphen Hydrogen Energy as the preferred bidder for the large-scale green hydrogen project through the media.
The deal struck
The plant, to be built in phases, will eventually produce 2 million tonnes of green ammonia a year for regional and global markets when it reaches full-scale output, which is anticipated before 2030.
Government is almost guaranteed to pay for its participation in the first two stages of the project – the feasibility and financial close phases.
For the feasibility stage, Namibia would need to avail N$1.88 billion (€95 million) as part of the 24% stake, while the financial close stage would require a staggering N$14 billion from Namibia alone.
Green hydrogen is made using renewable energy.
Kandjoze’s comments come against claims around government’s handling of its N$192 billion green hydrogen deal signed with Hyphen Hydrogen Solutions – the largest investment for Namibia and one of the biggest in Africa.
Commentators have raised concerns over the deal amid suggestions that it is secretive.
Dismissing such concerns, Kandjoze said any agreement concluded and presented to Cabinet was fully scrutinised by a multi-sectorial team involving the council and technocrats assigned and appointed to provide input.
"As chair of that council, we go through what the submissions are to the Green Hydrogen Council. Once we reject, we send it back. If we uptake and believe that enough was done, we take it to Cabinet," he said on the sidelines of a workshop held to discuss the mid-term budget review.
All agreements entered into have been properly scrutinised, Kandjoze said.
"When at the level of project finalisation, we also have faced the same question, so please illustrate where the bottleneck of secrecy is and by who," he said.
Criticism of the deal
Institute for Public Policy Research (IPPR) executive director Graham Hopwood has cautioned government on its plan, saying it would be risky for Namibia to make such an investment while little is known about the viability of the Hyphen green hydrogen proposition. "I don't think government should exercise its option to take up a 24% [stake] until the feasibility stage of the project is completed. That would seem to be too risky," he said.
"It also depends on where government gets the loans from to pay for the 24% and what conditions apply. If the project does misfire through no fault of the government, we need to be sure that taxpayers do not end up covering the cost,” he warned.
A recent Namibian Sun editorial opined: "Too much secrecy surrounding the deal has cast a massive shadow of doubt over it. If anything, this has raised questions and generated rumours about whose hands may have been greased during the process."
The editorial emphasised that Namibians have "long accepted... that every investment in the country is accompanied by shady manoeuvres" that only benefit "those in authority and their cronies."
Landless Peoples Movement lawmaker Henny Seibeb recently took issue with the manner in which the awarding of the green hydrogen bid was announced.
"Our awareness of the government’s efforts towards adopting green hydrogen has been shaped by mainstream media coverage," he said. As an example, Seibeb said the public learned about the designation of Hyphen Hydrogen Energy as the preferred bidder for the large-scale green hydrogen project through the media.
The deal struck
The plant, to be built in phases, will eventually produce 2 million tonnes of green ammonia a year for regional and global markets when it reaches full-scale output, which is anticipated before 2030.
Government is almost guaranteed to pay for its participation in the first two stages of the project – the feasibility and financial close phases.
For the feasibility stage, Namibia would need to avail N$1.88 billion (€95 million) as part of the 24% stake, while the financial close stage would require a staggering N$14 billion from Namibia alone.
Green hydrogen is made using renewable energy.
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