Turning a national challenge into a clean energy opportunity
The Otjikoto Biomass Power Station near Tsumeb is transforming Namibia’s bush encroachment challenge into a sustainable energy solution. By converting encroacher bush into biomass fuel, the 40 MW plant will generate clean electricity while supporting rural livelihoods and restoring degraded land.
A major construction milestone has recently been reached with the arrival of key components, marking progress toward commissioning. Supported by the Mitigation Action Facility, the Namibia – Biomass project promotes an inclusive fuel supply chain, creates jobs, and demonstrates a scalable model for climate action and economic development in Namibia.
Background and context
In Namibia’s semi-arid landscape, bush encroachment is a widespread environmental and economic challenge affecting over 46 million hectares of savannah. The proliferation of woody plants reduces biodiversity, limits livestock carrying capacity, and can significantly impact groundwater recharge, posing long-term risks to rural livelihoods and agricultural productivity.
As Progress Kashandula, CEO of the Namibia Biomass Industry Group, notes:
“We sing about the beautiful savannahs in our national anthem, but this is not the reality we are facing today.”
Addressing this challenge requires approaches that combine land management with viable economic use of encroacher biomass. By creating structured value chains for harvested bush, biomass can become a resource for renewable energy generation while supporting land restoration efforts.
Key developments and highlights
The project recently reached a significant milestone with the arrival of two steam drums, which are key components for the plant’s twin 20 MW boilers. Their delivery required careful planning, specialised logistics, and extensive coordination.
Steam drums are central to the power generation process, where they help generate high-pressure steam used to produce electricity. Their arrival marks the transition into a critical phase of construction. During this phase, the project is expected to create approximately 1,100 jobs, providing a significant boost to the local economy.
Through support from the Mitigation Action Facility, the Namibia Biomass Industry Group (N-BiG) is implementing stakeholder engagement activities to ensure sustainable and inclusive biomass sourcing.
To further strengthen sustainability, NamPower is working toward Forest Stewardship Council (FSC) certification of its fuel supply chain, ensuring responsible harvesting practices that contribute to land restoration.
Construction of the power station began in early 2025, supported by a EUR 25 million grant from the Mitigation Action Facility to maximise climate mitigation and socio-economic benefits.
Key expected impacts include:
- 300 GWh of renewable electricity generated annually
- Reduced dependence on electricity imports
- 16,200 hectares of bush thinned each year
- Over EUR 10 million injected annually into the local economy
- Around 1,000 direct and 1,500 indirect jobs created
Recent workshops in Tsumeb brought together a diverse group of suppliers, while consultations with government and forestry institutions helped pave the way for community-based harvesting models. NamPower has also advanced its FSC certification process by appointing a local Group Scheme Manager and an accredited certification body.
A blueprint for scalable impact
The Otjikoto Biomass Power Station demonstrates how Namibia’s bush encroachment crisis can be transformed into an opportunity for sustainable development: delivering clean energy, restoring ecosystems, and strengthening rural livelihoods.
As NamPower Project Manager Tangeni Tshivute notes:
“This plant is being used as a pilot. If the fuel supply chain proves successful, there is strong potential to replicate this model in other areas to benefit more farmers and the agricultural sector as a whole.”
Looking ahead, 2026 will be a decisive year, with construction nearing completion and the first biomass fuel deliveries expected. The project is set to test and validate a model that could be scaled across Namibia, unlocking long-term environmental and economic resilience.
Stay updated and connected
Learn more about the Otjikoto Biomass Power Station through the recently published multi-media story of the Forest Stewardship Council’ (FSC): https://fsc.org/en/newscentre/stories/namibia-biomass.
For regular updates on our portfolio, publications, and events: