Germany, the Netherlands and Belgium have been courting the largely desert nation of Namibia for its potential to produce green hydrogen, seen as a future carbon-free fuel, from its abundant solar and wind resources. Green hydrogen, which can be used to fuel ships and industry among other things, is produced by splitting water into hydrogen and oxygen using renewable energy.

Should the project come to fruition it could diversify Europe’s energy sources while boosting the economy of the nation of 2.5 million people, which currently depends on tourism, diamonds and fishing.

Still, production costs will need to fall before the fuel is competitive.

“This opens up completely new economic prospects for the African country and contributes to the development of an international hydrogen market,” Habeck said in a separate statement released at the Berlin Energy Transition Dialogue.

Hyphen plans to generate the fuel and then turn it into ammonia so that it can be transported to Germany.