COORDENAÇÃO DO PROJECTO H2VL

IMPLEMENTAÇÃO DO PROJECTO DE HIDROGÉNIO VERDE

NO LOBITO

Março 2024

CONFIDENCIAL
Global net-zero transition will require establishing hydrogen commodity trade
routes to supply future demand centers
​Potential positioning of countries in future global hydrogen ecosystem
Net exporter of low-carbon H2 ​RES potential to cover demand domestically

Net exporter of renewable H2 ​Yet, questions around ease and time of

transmission build-out and costs make reliance
Net exporter of both low- on H2 imports for top-up likely
carbon and renewable H2

Self-supplied

Net importer ​High reliance on imported clean

(future demand
H2 given non-optimal RES
centers)
resources (non-complimentary
wind and solar profile)

​High reliance on imported clean H2

given constrained land for RES
build-out
​Ambitious communicated H2 use
targets

Source McKinsey & Company – June 2021 2

Namibia is one of a few regions around the world with very favorable
conditions for green hydrogen production and export
​PV / wind resources for renewable hydrogen production
Optimal resources: Least Most

​Namibia very well

placed to be a global
green H2 supplier
​Optimal solar and wind
resources (especially in south
of country)
​Strategically located to supply
various demand centers with
existing deep sea port

Source McKinsey & Company – June 2021 3

By 2030, Namibia could produce green hydrogen as
low as 1.5 USD/kg
​Production cost of hydrogen, USD / kg
​Average region 2030 Renewable hydrogen cost
​Optimal region USD/kg
​6.0
​Net
importer
5.0 ​2.5

​4.0 ​Gray1,2
including
carbon costs
​3.0
​2.0
​2.0
​Low-carbon2,3

​1.0 ​Namibia
​Renewable4 ​Net
exporter

2020 2030 2040 2050 ​1.5

1/ SMR without CCS 2/ Gas price of flat 2.6-6.8 USD/Mmbtu; based on 30 USD/ton CO2 (2020), 50 USD/ton CO2 (2030), 150 USD/ton CO2 (2040) and 300
USD/ton CO2 (2050) 3/ Assumes ATR with CCS and 98% CO 2 capture rate. Based on carbon transport and storage cost of 65 USD/ton CO 2 (2025), 17
USD/ton CO2 (2030) and 14 USD/ton CO2 (2050) 4/ Based on alkaline with size classes of 2 MW (2020), 20 MW (2025) and 80 MW (from 2030); based on
LCOE of 25-73 USD/MWh (2020), 13-37 USD/MWh (2030) and 7-25 USD/MWh (2050) 5/ Analysis includes grid connection to shore for offshore windparks

Source McKinsey & Company – June 2021 4

 COSTS FOR AT SCALE PRODUCTION AND TRANSPORTATION (9,000-10,300 TONS H 2)
COSTS ACCOUNTING FOR LOSSES DURING TRANSPORTATION
This results in highly
competitive landing 3
costs of green H2 1 4
from Namibia in 2 ​8,700 km
Europe ​7,000 km

​12,300 km

​8,200 km

​Illustrative routes modelled, In USD/kg H2

1 2 3 4

​ H3
N ​LOHC ​ H2
L ​LOHC

​Clean production 1.5 ​Clean production 1.5 ​Clean production 1.5 ​Clean production 1.7

​Ammonification ​0.8-0.9 ​Hydrogenation ​0.1-0.3 ​Liquefaction ​0.7-1.0 ​Hydrogenation ​0.3-0.5

​Shipping 0.3-0.4 ​Shipping 0.3-0.4 ​Shipping 1.0-1.2 ​Shipping 0.3-0.4

​Cracking ​0.9-1.61 ​Dehydrogenation ​1.0-1.51 ​Import terminal 0.2 ​Dehydrogenation ​1.2-1.81

​Cost at port 1.5 ​2.0-2.9 ​3.5-4.4 ​Cost at port 1.5 ​1.4-2.1 ​2.9-3.7 ​Cost at port 1.5 ​1.9-2.4 ​3.2-3.8 ​Cost at port 1.7 ​1.8-2.7 ​3.5-4.4

Distribution costs (incl. conversion) Distribution costs (incl. conversion) Distribution costs (incl. conversion) Distribution costs (incl. conversion)

1.Dependent on whether hydrogen feedstock or heat from grid is used for dehydrogenation heating requirement

Source McKinsey & Company – June 2021 5

A Namibia - EU collaboration could be an ideal strategic partnership
enabling a climate-neutral Europe

​ eliable partner
R
​Long standing relationship with European
governments and businesses

​Investment opportunity ​Attractive destination

​Co-develop the H2 supply ​Safe and predictable
chain in partnership with business environment for
European companies investment

​Complementary supply
​Supports a regionally
diversified H2 supply to the EU

6
Namibia/Germany/EU - G2G Collaboration

7
Funding - Visionary Leadership

8
Funding - An Inclusive and Modern Approach

9
Funding - An Inclusive and Modern Approach

10
Namibia‘s path to developing the green hydrogen industry
Our aspirations:
Building Namibia’s
Hydrogen Sector
​Government Support
​Developing Green
Hydrogen is a key
activity of Harambee
Prosperity Plan 2
 Top 10 Global Exporter of Green
Hydrogen
 Achieving Namibia’s Socio-
Economic Goals
​Regulatory agenda
​Hydrogen strategy
​Put in place all required
regulatory enablers to
​RFP for first two Partner with a leading allow investment and
sites advisory firm to develop a ensure transparency and
hydrogen strategy that high returns
promotes investment
Launch RFP in June to opportunities
attract investment in two
high potential sites
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Next Steps1 – Draft A World Class Green H2 Strategy

12
Next Steps 2 - Develop Best In Class PtX Projects

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14
Questions ?