Green Industrialization Enabled by Renewable Energy
Green Industrialization Enabled by Renewable Energy
Context
Across the globe, decarbonizing mineral processing is emerging as a critical priority for achieving net-zero goals. Traditional production of metals such as iron relies heavily on coal or natural gas, resulting in significant carbon emissions. In many mineral-rich economies, this dependency not only increases environmental impact but also limits competitiveness as global trade increasingly restricts carbon-intensive products.
For countries in Southern Africa, abundant renewable energy resources present an opportunity to pioneer green industrialization, using solar, wind, and other clean power sources to drive domestic processing of raw materials. This can support local value addition, create skilled jobs, and improve export competitiveness.
One example that was analyzed as part of the SMET initiative is the Oshivela plant in Namibia, Africa’s first industrial-scale green iron facility powered entirely by renewable energy.
The plant was launched in April 2025 and has been facilitated by a consortium comprising German and Namibian renewable energy and engineering companies, which helped build a plant which is powered by solar energy using the largest electrolyzer in Southern Africa. This project could develop with the help of the framework of the EU-Namibia strategic partnership on Green Hydrogen.[i] It has an initial capacity of 15,000 tons per year and is planning to scale up to produce 2 million tons per year by 2030. It serves as a leading example of green industrialization.[ii]
Challenge
Traditionally, the mining industry has faced challenges in decarbonizing:
- High carbon emissions: Use of fossil fuel sources such as coal to power the mining sector has led to high carbon emissions globally
- Energy dependency: The mining sector’s reliance on fossil fuels added up to higher operational costs and caused significant environmental damage
- Structural issues in the Namibian economy: Dependency on raw material exports without in-country value addition, high youth unemployment and restrictions faced by carbon intensive products in global trade
Approach
The Oshivela plant demonstrates how renewable power and green hydrogen can be integrated into mineral processing:
- Integration of renewable energy: Off-grid plant powered by a 25 MW solar photovoltaic system and a 13.4 MW battery storage system, ensuring zero-emissions production[iii]
- Green Hydrogen: The largest hydrolyzer in Southern Africa, with a power of 12MW, developed to produce green hydrogen for use in the reduction process, as an alternative to coal or natural gas[iv]
- Scalability of the technology: Modular technology allows for rapid capacity expansion, with plans to scale production to 2 million tons of iron by 2030[v]
Conditions
There was a combination of factors which worked in Namibia’s favor and allowed it to produce green iron at the Oshivela Plant:
- Renewable resources: Namibia already possessed abundant solar and wind energy resources which helped in building a foundation for renewable energy generation for the project
- Funding: Grants and concessional funding from European partners reduced project risk in the pilot and scale-up phases. [vi]
- Government support: National policies prioritizing sustainable industrialization and green hydrogen development provided a clear framework for investors.
Observed Impact
The use of renewable energy at Hylron’s Oshivela Plant to produce green hydrogen is expected to have a lasting impact on decarbonizing mining operations:
- Emissions reduction: By using renewable energy, the plan is expected to reduce carbon emissions by 27000 tons in its initial phase which can be scaled up to a maximum potential of 1.8 million tons per year[vii]
- Leadership in decarbonization: If the plant is successful in producing iron up to the target levels and reducing carbon emissions at the same time, it can position Namibia as a global leader in green industrialization
- Economic growth: By adopting this model of industrial development, Namibia can also move up the value chain in critical minerals processing, enhance its industrial base and improve its performance in global trade
- Offtake agreement: HyIron secured an agreement with Benteler, a German metals processing company, for an offtake of 200,000 tons per year of hydrogen-reduced iron[viii]
What’s Next for the Southern African Region
Green industrialization models like Oshivela’s offer replicable lessons for other mineral-rich countries:
- Renewable energy installation: Building capacity for solar, hydro, or wind energy could play a key role in enabling future green industrial activity.
- Scalable technologies: Technologies like Hylron, which are modular and adaptable, may offer replicable models that other countries could consider based on their mineral profiles
- Collaboration with international partners: Namibia’s partnership with the EU, including technical and financial support from Germany, has been an important enabler that other countries might look to emulate
[ii] https://english.news.cn/africa/20250412/c25254f22c3947a199213923f94208e4/c.html
[iii] https://www.energize.co.za/article/namibia-opens-renewables-powered-green-iron-plant
[iv] https://english.news.cn/africa/20250412/c25254f22c3947a199213923f94208e4/c.html
[v] https://english.news.cn/africa/20250412/c25254f22c3947a199213923f94208e4/c.html
[vii] https://hyiron.com/oshivela/