Germany has entered into a climate and energy alliance with Morocco to bolster renewable energy expansion and hydrogen production in the North African country.
Germany aims to become climate-neutral by 2045, necessitating substantial reductions in greenhouse gas emissions. Hydrogen is seen as a crucial element in this transition, particularly for industries like steel and chemicals that cannot be easily electrified. As Europe’s largest economy, Germany will need to import up to 70% of its hydrogen due to limited space and conditions for large-scale wind and solar power production.
Morocco offers optimal conditions for renewable energy and green hydrogen production, making it a key partner for Germany. With abundant sunshine and vast open spaces, Morocco is well-positioned to harness solar energy efficiently. Development Minister Svenja Schulze highlighted Morocco’s strategic importance, emphasizing a fair and equitable approach to developing the new green hydrogen economy.
Since 2012, Germany has pledged over one billion euros in subsidized loans for renewable energy projects in Morocco. A significant portion of this funding has been directed towards constructing the world’s largest solar thermal power plant in Ouarzazate. This plant is expected to produce around 10,000 tonnes of hydrogen annually, which can generate approximately 50,000 tonnes of green steel. This initiative aligns with Germany’s goals to support green hydrogen production and promote sustainable industrial processes.
The alliance aims to facilitate electricity trading cooperation between Morocco and the European Union. This collaboration will involve German technology companies and suppliers to advance the hydrogen economy. Economy Ministry State Secretary Stefan Wenzel emphasized the importance of integrating German expertise and technology to achieve these goals.
A critical aspect of the alliance is ensuring that the new green hydrogen economy benefits Morocco. Schulze stressed the importance of fair value chains, allowing Morocco to drive its energy transition and reap economic benefits from its renewable energy resources.
The economic viability of green hydrogen production is a primary concern. Producing hydrogen through electrolysis using renewable energy remains more expensive than traditional methods. Ensuring cost-competitiveness will require continuous technological advancements and economies of scale. Additionally, developing the necessary infrastructure for hydrogen production, storage, and transportation will be crucial for the alliance’s success.
The alliance must navigate a competitive global landscape where countries like Australia, Japan, and the United States are also making significant strides in green hydrogen production. For Germany and Morocco to maintain a competitive edge, they must prioritize innovation and efficiency in their projects.
Ensuring that the economic benefits of green hydrogen production are equitably distributed is essential. Morocco’s role should extend beyond being a raw material supplier to becoming an active participant in the global hydrogen economy. This approach will foster sustainable development and strengthen bilateral relations.
