SDG Namibia One, which is part of Climate Fund Managers’ Climate Investor Three Fund, has signed a Development Funding Agreement with energy company Enersense Energy Namibia, to advance the development of the Dâures Green Fertilizer Project in Namibia’s Erongo Region.
SDG Namibia One is the country’s dedicated energy transition and green hydrogen fund. The project will use renewable energy and green hydrogen to produce low-carbon fertilizer for Namibian and regional markets, supporting agricultural productivity and food security while reducing reliance on imports.
Located in the Dâures Constituency, approximately 50 km inland from Namibia’s Atlantic coast, the project will harness the area’s abundant solar and wind resources to produce up to 20 000 tpy of green ammonia and up to 80 000 tpy of ammonium sulfate fertilizer. Dedicated infrastructure comprising 60 MW of solar photovoltaic (PV), 10 MW of wind generation and a 65 MWh battery energy storage system will provide renewable power for a 40 MW electrolysis facility to produce green hydrogen that will be converted into green ammonia and, ultimately, fertilizer. Once operational, the project is expected to avoid approximately 48 000 tpy of CO2 equivalent emissions by displacing conventional fertilizer production using grey ammonia, creating up to 115 permanent jobs in a rural area where employment opportunities are limited.
SDG Namibia One is managed by Namibia Hydrogen Fund Managers, a partnership between Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia. It is a blended finance facility, combining public and private capital to support projects from early-stage development through construction and into operation.
SDG Namibia One will provide up to US$3.6 million towards a total development budget of up to US$7.07 million and will act as co-developer alongside Enersense Energy Namibia. The development funding, provided by the EU under its Global Gateway strategy and Invest International, will support critical activities including front-end engineering design (FEED), market development, permitting, environmental and social studies and the conversion of market interest into bankable offtake arrangements. Financial close is targeted for 2Q28, with commercial operations expected in 1Q30.
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 (SADC) remain heavily reliant on imports and face a significant supply deficit. By establishing domestic production of low-carbon fertilizer, the project has the potential to reduce reliance on carbon-intensive imports and help decarbonise agricultural value chains. The project will also strengthen regional supply chains and support greater local value addition.
The project is expected to be one of the first commercial scale green fertilizer projects in Southern Africa, building on the Dâures Green Hydrogen Village pilot programme developed by Enersense at the project site. To date, approximately US$17.7 million has been mobilised for pilot and proof-of-concept activities, with funding provided by the German Federal Ministry of Education and Research, the UN Industrial Development Organisation (UNIDO), the UK Government as well as Enersense. 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 optimisation of the commercial scale project.
The project demonstrates the role that blended finance can play in moving emerging green hydrogen projects towards bankability. Early-stage development capital for first-of-a-kind projects is typically scarce due to the technical, commercial and execution risks involved. Through SDG Namibia One, risk-tolerant development capital can be deployed alongside active project development and governance support to complete the work required to reach financial close and create the conditions for commercial investors to participate in the construction.
Mercia Geises, CEO of Namibia Hydrogen Fund Managers, said: “The Dâures Green Fertilizer Project aligns strongly with Namibia’s green industrialisation ambitions, creating greater value from the country’s renewable resources by using green hydrogen to produce a critical agricultural input at home. By producing low-carbon fertilizer for Namibian and regional markets, the project has the potential to reduce reliance on imports, strengthen agricultural value chains and support food security. 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. We are pleased to work alongside a Namibian-owned developer to take the project from its pioneering pilot towards commercial scale production.”
Martin Nambundunga, Interim CEO at Daures Fertilizer Solutions, commented: “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. Through this partnership, we are producing fertilizer right here in the desert – using burdened, unfarmable landscapes to unlock the full potential of Namibia's productive agricultural soils. Our goal is simple: manufacture these inputs locally to make them accessible to farmers in Namibia and beyond, create jobs, support local industries with cleaner products, and improve livelihoods. When our farmers can access these home-grown inputs, they can grow more food, strengthen their businesses, and help Namibia become truly food secure."
Erica Gerretsen, Director for the Green Deal and Digital agenda at the Directorate-General for International Partnerships, European Commission, stated: “The Dâures Green Fertilizer Project is a powerful example of how green hydrogen can become a driver of agricultural development and food security. By using renewable energy to produce green fertilizer locally, Namibia can reduce its dependence on imports, strengthen the resilience of its agricultural sector and create new opportunities for farmers, businesses and rural communities. This is precisely the kind of transformation the EU’s Global Gateway seeks to support: investing in sustainable local value chains, creating jobs and ensuring that the green transition delivers tangible benefits for people. Dâures is an inspiring example of how green industrialisation can go hand in hand with Namibia’s ambitions for a more productive and food-secure future.”
Jeroen Plag, Chief Investment Officer at Invest International, said: "Green hydrogen is a critical piece of the puzzle in the global decarbonisation of industries that are difficult to abate, including fertilizer production. Through our collaboration with the European Union, Invest International helps advance projects that combine climate action with inclusive economic growth. The Dâures Green Fertilizer Project is a strong example of this approach: it supports Namibia's ambitions to build a green industrial base, strengthens food security through local fertilizer production, reduces reliance on imports and creates lasting economic opportunities."
The Dâures Green Fertilizer 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. Together, these investments demonstrate the breadth of SDG Namibia One’s mandate across the energy transition and green hydrogen value chain in Namibia, spanning green hydrogen production and downstream applications in green iron, green ammonia and fertilizer.