EU Commissioner for Energy Kadri Simson has signed off €53.9m ($59.9m) of funding to develop green hydrogen and renewables in southern Africa.

Namibia will receive €36.9m, the largest share of the investment.

The EU commission has pledged €50m to Namibian and South African hydrogen-focused funds, of which €25m will go to the SDG Namibia One fund with the aim of advancing production, transportation and storage, as well as downstream industries.

According to an EU statement, the fund aims to raise €1bn towards the 3GW Hyphen Hydrogen Energy project, which is expected to cost $10bn.

The European Investment Bank and Dutch impact fund Invest International have contributed €540m to the project, which is expected to receive a final investment decision in 2025.

Simson also signed off a €1.2m grant for the Namibia Green Hydrogen Programme and the funding will ensure that “the green hydrogen sector is steered and regulated by an effective support mechanism”.

“The EU wants to help Namibia drive its green industrialisation, achieve energy security and increase prosperity for its citizens as envisioned under the Harambee Prosperity Plan and Vision 2030,” Simson added.

In March, Germany labelled the Hyphen Hydrogen Energy project as a “strategic foreign project”. It is being developed by a joint venture of German renewables company Enertrag and international investor Nicholas Holdings, with RWE and South Korean company Approtium having already signed non-binding off-take agreements.