Windhoek, Namibia – September 11, 2026
Namibia is advancing one of Southern Africa's first commercial-scale green fertilizer projects, with development funding secured to transform the country's renewable energy resources into locally manufactured agricultural inputs.
The Dâures Green Fertiliser Project has secured up to $3.6 million in development funding from SDG Namibia One, a dedicated energy transition and green hydrogen fund managed by Namibia Hydrogen Fund Managers. The project, located in the Erongo Region, will use solar and wind power to produce green ammonia and ammonium sulphate fertilizer for Namibian and regional markets.
From Pilot to Commercial Scale
The project builds on the Dâures Green Hydrogen Village pilot programme developed by Enersense Energy Namibia at the project site. To date, approximately $17.7 million has been mobilized for pilot and proof-of-concept activities, with funding from the German Federal Ministry of Education and Research, the UN Industrial Development Organisation, the UK Government, and Enersense itself.
"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 fertilizer imports," said Martin Nambundunga, Interim CEO at Daures Fertilizer Solutions. "Through this partnership, we are producing fertilizer right here in the desert – using barren, unfarmable landscapes to unlock the full potential of Namibia's productive agricultural soils."
Infrastructure and Production Targets
Once operational, the facility will produce up to 20,000 tonnes per year of green ammonia and up to 80,000 tonnes per year of ammonium sulphate fertilizer. The project will combine 60 MW of solar photovoltaic capacity, 10 MW of wind generation, and a 65 MWh battery energy storage system to power a 40 MW electrolysis facility.
The green hydrogen produced through electrolysis will be converted into green ammonia, and ultimately into fertilizer. This approach contrasts with most low-carbon ammonia capacity announced in Africa, which typically targets export markets rather than domestic agricultural use.
Blended Finance Model
The development funding from SDG Namibia One forms part of a total development budget of up to $7.07 million. The fund is a blended finance facility managed through a partnership between Climate Fund Managers, Invest International, and the Environmental Investment Fund of Namibia. It combines public and private capital to support projects from early-stage development through construction and into operation.
The development funding, provided by the European Union under its Global Gateway strategy and Invest International, will support front-end engineering design, market development, permitting, environmental and social studies, and the conversion of market interest into bankable offtake arrangements.
"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," said Mercia Geises, CEO of Namibia Hydrogen Fund Managers. "We are pleased to work alongside a Namibian-owned developer to take the project from its pioneering pilot towards commercial scale production."
Strategic Importance
Agricultural productivity and food security are important national priorities for Namibia, where the agricultural sector is highly exposed to drought and climate variability. Fertilizer is an essential agricultural input that can help improve productivity, yet Namibia and the wider Southern African Development Community remain heavily reliant on imports.
By establishing domestic production of low-carbon fertilizer, the project has the potential to reduce reliance on carbon-intensive imports and help decarbonize agricultural value chains. It will also strengthen regional supply chains and support greater local value addition.
"The Dâures Green Fertilizer Project is a powerful example of how green hydrogen can become a driver of agricultural development and food security," said Erica Gerretsen, Director for the Green Deal and Digital agenda at the European Commission's Directorate-General for International Partnerships. "This is precisely the kind of transformation the EU's Global Gateway seeks to support."
Timeline and Next Steps
Financial close is targeted for the second quarter of 2028, with commercial operations expected in the first quarter of 2030. The pilot is expected to produce Namibia's first locally manufactured green fertilizer by the fourth quarter of 2026, generating operational data that will inform the development and optimization of the commercial-scale project.
The wider Phase 2 development is estimated to require about $210 million in capital expenditure, or roughly N$4.2 billion.
Broader Investment Portfolio
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). These investments demonstrate SDG Namibia One's mandate across the energy transition and green hydrogen value chain in Namibia.
The project will create up to 115 permanent jobs in a rural area where employment opportunities are limited. The facility is located in the Dâures Constituency, approximately 50 kilometers inland from Namibia's Atlantic coast.
Source: World Fertilizer, September 11, 2026. New Era Namibia, September 11, 2026. The Namibian, September 12, 2026.
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Institutional Research Desk · Foresight Institute of Research and Translation
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