Manage hydrogen job expectations carefully, Steytler warns

Development Bank of Namibia (DBN) CEO Dr John Steytler has urged caution regarding promises of job creation within the country’s nascent green hydrogen industry, warning stakeholders to manage their expectations.

While green hydrogen’s potential is immense, Steytler stressed that the industry is still in its infancy, with no clear timelines or guarantees on when large-scale projects will move from planning to execution.

Speaking on The Agenda on Sunday, he highlighted the importance of grounded optimism as Namibia moves forward in its green hydrogen journey. "Green hydrogen has a lot of potential, and we are seeing many pilot projects moving forward. However, it remains a virgin industry for Namibia and globally. Through these pilots, we will gather more information, and at some point, we can confidently say we have definite feasibility," he said.

He highlighted that major projects - such as the one by Hyphen Hydrogen Energy, which is among the country’s most anticipated initiatives - are still in the feasibility stage, making it premature to guarantee job creation figures.

"Hyphen is still conducting feasibility studies, and the full business case is not yet available. It will likely take another two years before the feasibility studies are completed. Until then, we must manage expectations. It may take a bit longer, but green hydrogen is coming. I am optimistic about green industrialisation because we are in a global transition - oil companies are even investing in green hydrogen as we move away from a carbon-based economy," Steytler noted.

Promises

Just four years ago, the concept of green hydrogen was little more than a conversation. Today, it has come much closer to reality, with the promise of thousands of jobs. In July, The Namibian reported that pilot projects in Namibia have already created over 200 jobs and awarded nearly N$170 million in contracts to local small and medium-sized enterprises (SMEs).

According to the Namibia Green Hydrogen Programme’s head of impact and environment, social and governance (ESG) Eline van der Linden, these efforts are part of the ongoing development of the sector. "Each job in this emerging sector is a new and additional opportunity," she was quoted as saying.

"Economic modelling by McKinsey & Company estimates that by 2040, the industry could create up to 250 000 jobs - 180 000 directly within green hydrogen and 70 000 from green manufacturing and other related sectors,” she added.

Hyphen has made bold promises of its own. Last year, Namibia Daily News reported that the project could generate up to 15 000 jobs during the construction phase, with 3 000 permanent positions once fully operational.

Hyphen’s head of ESG Toni Beukes emphasised the company’s commitment to local job creation, with a target of 90% Namibian employees and 20% of jobs allocated to youth. The project also aims to source 30% of goods, services and materials locally during both the construction and operational phases.

Meanwhile, Mining and Energy reported that Namibia’s green industrialisation agenda aims to create 26 000 jobs by 2030. The government has identified key industries such as solar panel and wind turbine assembly, synthetic fuel production and raw mineral value addition, which could generate over N$23.7 billion in gross value added, it said.

According to green hydrogen commissioner James Mnyupe, this ambitious agenda is part of Namibia’s broader socioeconomic development strategy, and collaboration with the ministries of industrialisation and finance will be crucial.

Intensive job creation plan

While green hydrogen holds significant promise, Steytler urged that Namibia's next president should prioritise immediate solutions for the country's more pressing economic challenges.

With the 2024 elections fast approaching, he said the incoming administration should focus on sectors with the potential for quicker, more tangible job creation, such as agriculture, tourism and housing. "My first suggestion would be to address unemployment, which is alarmingly high. The latest figures, from 2018, show unemployment at 36%, with youth unemployment even higher at 45 to 48%. It’s probably still around that level, if not higher."

He called for an ‘intensive job creation plan’ aimed at absorbing unskilled labour, noting that large-scale projects like green hydrogen must be linked to SMEs to maximise job creation.

"Tourism and hospitality have shown the capacity to create jobs. We should do more in this area because we know it works," Steytler stressed.

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