German developer Möhring Energie has signed a framework agreement with the Mauritanian government that grants access to tax incentives under the country’s Hydrogen Code, a regulatory package enacted in September 2024 to accelerate large scale Power to X investment.
The agreement clears the way for Möhring Energie’s proposed Nayrah project, a 1 GW green hydrogen and ammonia development designed to produce around 140,000 tonnes of green hydrogen annually for conversion into approximately 400,000 tonnes of green ammonia. Export volumes are targeted primarily at European markets, with first production scheduled for 2029. While the timeline remains ambitious, the project highlights the scale at which Mauritania is attempting to enter global hydrogen trade flows rather than focusing on incremental domestic demand.
Mauritania’s Hydrogen Code is central to this strategy. The legislation introduces tax exemptions and fiscal incentives intended to offset early stage project risk and attract international capital. For a country with limited domestic industrial demand for hydrogen, the policy is explicitly export driven, relying on Mauritania’s high quality solar and wind resources to underpin competitive renewable power prices. Government officials have framed the framework as a means to unlock billions of dollars in foreign investment, though execution risk remains high given the capital intensity of electrolyzer based ammonia projects and the still evolving European offtake landscape.
Möhring Energie’s agreement is notable not only for its scale but also because it makes the company the first German developer to formally enter the Mauritanian hydrogen framework since the law was enacted. That distinction matters politically, as Germany continues to pursue supply diversification strategies for green molecules amid concerns over domestic cost competitiveness and constrained renewable buildout. For developers, Mauritania offers the prospect of lower levelized costs of hydrogen production, but that advantage must be weighed against infrastructure development requirements, financing risk, and long distance transport economics.
Competition for position in Mauritania is already intensifying. Earlier this year, Polish ammonia producer Hynfra and Chinese developer UEG signed similar framework agreements with the government. Hynfra’s planned project near Nouakchott targets production of roughly 100,000 tonnes of green ammonia annually starting in 2030, with exports routed through the Port of Friendship. UEG’s plans are significantly larger in scale, with ambitions to produce around one million tonnes of green ammonia per year at multiple sites across northern and central Mauritania, although specific project locations and timelines have not been disclosed.
The clustering of proposed projects underscores both the opportunity and the risk embedded in Mauritania’s hydrogen push. On paper, the country’s renewable resource profile supports low cost power generation, a prerequisite for export competitive green ammonia. In practice, the success of these projects will hinge on synchronized development of grid connections, water supply solutions, port infrastructure, and long term offtake contracts that can withstand price volatility in global ammonia and hydrogen markets.
For Europe, Mauritania’s emergence as a potential supplier aligns with broader efforts to secure non fossil energy imports while reducing reliance on a limited number of exporting regions. However, the timeline mismatch between announced projects and near term European demand remains unresolved. Large scale green ammonia imports are still constrained by regulatory clarity, willingness to pay premiums over conventional ammonia, and downstream infrastructure readiness.
Möhring Energie’s Nayrah project therefore serves as an early test case for whether Mauritania’s Hydrogen Code can translate policy intent into bankable projects. If developers are able to move beyond framework agreements to final investment decisions, Mauritania could become one of the first African countries to anchor itself firmly in the global green hydrogen supply chain.
