• RWE exits $10B Hyphen green hydrogen project in Namibia
• Company cites market conditions, not indigenous land concerns
• EU hydrogen demand remains low; 98% of projects in planning
  

German energy giant RWE announced its withdrawal from the Hyphen green hydrogen derivatives project in Namibia on Monday, pulling out of a $10 billion undertaking designed to establish the country as a major green hydrogen hub.

"We can confirm that RWE is currently not pursuing any projects in Namibia," the company said in a statement.

RWE insisted its decision was unrelated to local community criticism concerning the project's planned site on Nama ancestral lands within a national park. Indigenous rights organizations had warned the German group in April, arguing the concession encroached upon protected territories.

RWE’s decision comes amid slower-than-anticipated growth in the European market for hydrogen derivatives. The company had previously committed to exploring the purchase of approximately 300,000 tonnes of green ammonia per year starting in 2027.

According to the European Hydrogen Index 2025, renewable hydrogen accounted for only about 0.3% of total hydrogen demand in the European Union in 2023, with approximately 98% of projects still in the feasibility stage. Despite Europe's goal to import 10 million tonnes by 2030, the market remains constrained by a funding deficit, slow industrialization, and delays of up to two years in accessing subsidies.

Hyphen, which was chosen by the Namibian government as the preferred bidder to develop the project, aims to produce 1.7 million tonnes of green ammonia per year by 2027. The company had touted the project as a major job creator, promising 15,000 jobs during construction and 3,000 permanent positions, contributing to the national goal of 30,000 green jobs by 2030.

Olivier de Souza