South Africa's Western Cape and Namibia's Erongo Region are finalizing a twinning agreement to develop a cross-border green hydrogen pipeline, a move hailed as pivotal for sustainable energy and economic growth in both nations. 

The initiative is a key component of the broader Namibia Green Hydrogen Program (NGH2P), according to its mid-year review for 2025. The collaboration builds on an agreement signed in May 2024 during the World Hydrogen Summit, which focused on exploring the pipeline's feasibility. 

A pre-feasibility study, completed in December 2024 at a cost of N$5 million ($293,000), assessed the viability of connecting hydrogen hubs in Lüderitz, Namibia, with South Africa's Boegoebaai and Saldanha Bay, and extending to Gauteng.

"This system is pivotal for sustainable energy, socio-economic growth, and advancing Namibia and South Africa’s net-zero goals while positioning both countries as key players in the global hydrogen market,” the NGH2P stated.

A conceptual master plan for the pipeline, estimated to cost N$30 million ($1.7 million), is slated for development between mid-2025 and mid-2026. Funding is expected from Climate Fund Managers and Gasunie (Netherlands), with additional support from the European Union.

South African President Cyril Ramaphosa first proposed the hydrogen partnership in 2020 to boost the country’s green hydrogen program. South Africa aims to produce up to 13 million tons of green hydrogen and derivatives annually by 2050, requiring a significant increase in renewable energy capacity.

Namibia has already attracted approximately N$2.08 billion ($118.5 million) in green hydrogen investments. 

James Mnyupe, head of the NGH2P, highlighted the commissioning of the HyIron-Oshivella plant near Arandisin in 2025 as a significant milestone, noting the creation of over 800 jobs for Namibians and N$170 million ($9.6 million) directed to local SMEs.

The NGH2P also completed a draft National Policy on Green Hydrogen and Derivatives in April 2025, which will guide future legislation and operations after ministerial review.