The project will use renewable energy and green hydrogen to produce low-carbon fertiliser for Namibian and regional markets, supporting agricultural productivity and food security while reducing reliance on imports.
Located in the Dâures Constituency, approximately 50 kilometres inland from Namibia’s Atlantic coast, the project will harness the area’s abundant solar and wind resources to produce up to 20,000 tonnes per annum of green ammonia and up to 80,000 tonnes per annum of ammonium sulphate fertiliser.
Dedicated infrastructure comprising 60 MW of solar PV, 10 MW of wind generation and a 65 MWh battery energy storage system will provide renewable power for a 40 MW electrolysis facility to produce green hydrogen that will be converted into green ammonia and, ultimately, fertiliser. Once operational, the project is expected to avoid approximately 48,000 tonnes of CO₂ equivalent emissions each year by displacing conventional fertiliser production using grey ammonia, creating up to 115 permanent jobs in a rural area where employment opportunities are limited.
“The Dâures Green Fertiliser Project aligns strongly with Namibia’s green industrialisation ambitions, creating greater value from the country’s renewable resources by using green hydrogen to produce a critical agricultural input at home” said Mercia Geises, CEO of Namibia Hydrogen Fund Managers. “By producing low-carbon fertiliser for Namibian and regional markets, the project has the potential to reduce reliance on imports, strengthen agricultural value chains and support food security. Through SDG Namibia One, we are providing the early-stage development capital and co-development support needed to progress the project towards bankability and create the conditions for private capital to invest at scale. We are pleased to work alongside a Namibian-owned developer to take the project from its pioneering pilot towards commercial-scale production.”
SDG Namibia One will provide up to $3.6 million towards a total development budget of up to $7.07 million and will act as co-developer alongside Enersense Energy Namibia. The development funding, provided by the European Union under its Global Gateway strategy and Invest International, will support critical activities including front-end engineering design, market development, permitting, environmental and social studies and the conversion of market interest into bankable offtake arrangements. Financial close is targeted for the second quarter of 2028, with commercial operations expected in the first quarter of 2030.
Agricultural productivity and food security are important national priorities for Namibia, where the agricultural sector is highly exposed to drought and climate variability. Fertiliser is an essential agricultural input that can help improve productivity, yet Namibia and the wider Southern African Development Community (SADC) remain heavily reliant on imports and face a significant supply deficit. By establishing domestic production of low-carbon fertiliser, the project has the potential to reduce reliance on carbon-intensive imports and help decarbonise agricultural value chains. The project will also strengthen regional supply chains and support greater local value addition.
The project is expected to be one of the first commercial-scale green fertiliser projects in Southern Africa, building on the Dâures Green Hydrogen Village pilot programme developed by Enersense at the project site. To date, approximately $17.7 million has been mobilised for pilot and proof-of-concept activities, with funding provided by the German Federal Ministry of Education and Research, the United Nations Industrial Development Organisation (UNIDO), the United Kingdom Government as well as Enersense. The pilot is expected to produce Namibia’s first locally manufactured green fertiliser by the fourth quarter of 2026, generating operational data that will inform the development and optimisation of the commercial-scale project.
The project demonstrates the role that blended finance can play in moving emerging green hydrogen projects towards bankability. Early-stage development capital for first-of-a-kind projects is typically scarce due to the technical, commercial and execution risks involved. Through SDG Namibia One, risk-tolerant development capital can be deployed alongside active project development and governance support to complete the work required to reach financial close and create the conditions for commercial investors to participate in the construction.
SDG Namibia One is managed by Namibia Hydrogen Fund Managers, a partnership between Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia. It is a blended finance facility, combining public and private capital to support projects from early-stage development through construction and into operation.
“A country cannot truly be independent if it cannot feed its own people, and our farmers cannot produce enough food if we continue depending on expensive fertiliser imports” added Martin Nambundunga, Interim Chief Executive Officer at Daures Fertilizer Solutions. “Through this partnership, we are producing fertiliser right here in the desert - using burdened, unfarmable landscapes to unlock the full potential of Namibia's productive agricultural soils. Our goal is simple: manufacture these inputs locally to make them accessible to farmers in Namibia and beyond, create jobs, support local industries with cleaner products, and improve livelihoods. When our farmers can access these home-grown inputs, they can grow more food, strengthen their businesses, and help Namibia become truly food secure.”
The Dâures Green Fertiliser Project is the fourth investment made by SDG Namibia One, following investments in Hyphen, Namibia’s first gigawatt-scale green hydrogen project; HyIron’s Oshivela Project, Africa’s first climate-neutral iron plant; and the Zhero Molecules Walvis Bay Project, an industrial-scale green ammonia facility.
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