Windhoek, Namibia, 19 December2025: SDG Namibia One Fund, Namibia’s dedicated energytransition and green hydrogen infrastructure fund, today announced the signingof a Development Funding Agreement with Zhero Europe, a clean energy projectsdeveloper, to advance the development of the Zhero Molecules Walvis BayProject, an industrial-scale green ammonia facility near Walvis Bay in the ErongoRegion on Namibia’s central coast.
SDG Namibia One Fund (also known as Climate InvestorThree Namibia) is managed by Climate Fund Managers (CFM), a climate-focusedblended finance investment manager, in partnership with Dutch developmentfinance institution, Invest International, and the Environmental InvestmentFund of Namibia (EIF). The Fund is backed by the European Union Global Gatewayinvestment strategy and Invest International. It has committed up to USD 5.15million in development funding to enable Zhero to complete the development andfeasibility activities required to progress the project toward a finalinvestment decision, targeted for 2027. Commercial operation is expected in 2030.
Zhero Molecule Walvis Bay is Zhero’s flagship project in greenmolecules. Once operational, it is expected to produce 500,000 tonnes of greenammonia per year, avoiding approximately 1.2 million tonnes of CO₂ emissionsannually. Alongside its contribution to the energy transition, the project willsupport Namibia’s broader socioeconomic development - creating approximately6,000 jobs during construction and around 500 permanent roles, while alsogenerating opportunities for local businesses and service providers across thevalue chain.
The project will be poweredby an integrated renewable energy system comprising 3 GW of solar PV, 2.2 GWhof battery energy storage, a 1.6 GW electrolyser system and 110 km of newtransmission infrastructure. A desalination plant is planned as part of theproject’s water supply solution. Green ammonia produced by the Project isexpected to serve global decarbonisation markets, including fertilisers,maritime fuels and industrial feedstocks.
Green ammonia is produced bycombining green hydrogen, generated through electrolysis powered by renewableenergy, with nitrogen extracted from the air. It is a zero-carbon fuel andchemical feedstock with applications across sectors including fertiliserproduction, maritime shipping and industrial processes. Green ammonia isparticularly important for decarbonising these hard-to-abate industries, wherefew alternative zero-carbon solutions currently exist.
Darron Johnson, Regional Headof Africa at Climate Fund Managers, said: “Zhero’sproject aligns strongly with Namibia’s ambition to build a competitive greenhydrogen and ammonia industry, as well as with the mandate of our SDG NamibiaOne Fund. The site benefits from exceptional solar resources, ample land anddirect access to deep-water export infrastructure at Walvis Bay, making itwell-suited for industrial-scale green ammonia production. Through its blendedfinance structure, SDG Namibia One is providing early-stage development capitalalongside Zhero needed to de-risk the project and prepare it for financialclose, creating the conditions for private capital to invest at scale in theconstruction phase. We look forward to working with Zhero to bring thisimportant project from development, through construction and into operation.”
Paolo Gallieri, ChiefOperating Officer at Zhero said: “This developmentfunding from SDG Namibia One will be additive to our own development funding investment.Given the deep understanding of the Namibian ecosystem that the team at theFund bring and the blended-finance model they can augment, we very much regardthis investment as pivotal to the success of this venture. Namibia has thenatural resources, strategic location and national vision to become a globalleader in green ammonia and hydrogen. With this support, we are strengtheningour ability to deliver a world-class facility that can attract long-terminvestment, create economic opportunities for the country and contribute toglobal decarbonisation efforts.”
European Commissioner forInternational Partnerships, Jozef Síkela, said: “Duringmy mission to Namibia, I saw first-hand how Global Gateway cooperation inrenewable energy can translate into real industrial value. This project showswhat that means in practice: thousands of jobs in Namibia, sustainableindustrial development and a new clean-energy supply that can support Europe’sdecarbonisation efforts”
SDG Namibia One is a blended finance facilitydesigned to mobilise public and private investment into Namibia’s greenhydrogen and energy-transition sectors. It currently manages EUR 65 million inearly-stage development funding from European donors and is raising additionalcapital to finance construction-phase investments.
