Morocco has thrust itself into the international spotlight by approving green hydrogen projects totaling $32.5 billion (319 billion dirhams), an ambitious move set to redefine the country’s energy landscape. This strategic initiative, led by a coalition of global corporations, positions Morocco at the forefront of meeting future energy demands while contributing to global sustainability efforts.
Central to these projects is the production of green hydrogen through electrolysis powered by renewable energy, a cleaner alternative to fossil fuels. Among the approved ventures, the Moroccan government has selected industry-leading groups, including the United States’ Ortus, Spain’s Acciona, and Germany’s Nordex, to facilitate the production of green ammonia. Additionally, partnerships involving the UAE’s Taqa, Spain’s Cepsa, and Morocco’s Nareva will focus on developing ammonia, fuel, and steel. Further diversifying this green energy portfolio, Saudi Arabia’s Acwa Power and the Chinese consortium of UEG and China Three Gorges are set to contribute by producing steel and ammonia, respectively.
This move is not solely about domestic energy demands. The Moroccan government envisions a surge in exports, particularly to the European Union, aligning with the EU’s Green Deal that calls for ten million tons of renewable hydrogen imports by 2030. By capitalizing on its strategic geographic position and abundant natural resources, Morocco aims to become a critical player in the green hydrogen supply chain.
The strategy includes offering up to 30,000 hectares of land for each project post-preliminary agreement, showcasing Morocco’s commitment to fast-tracking these projects. As of the first phase launched last March, approximately 300,000 hectares have been earmarked for integrated projects to generate renewable energy and convert green hydrogen into valuable substances like ammonia, methanol, and synthetic fuels.
Earlier collaborations, such as the deal with France’s TotalEnergies in October and the partnership with Engie and the Moroccan phosphate and fertilizer behemoth OCP, underscore the robust framework underpinning this initiative. These alliances illustrate a well-orchestrated approach to meeting the ambitious target of renewables comprising 52% of Morocco’s installed capacity by 2030, a notable rise from 45%.
However, challenges loom. These projects must navigate financial, logistical, and technological hurdles. The absence of detailed deadlines or specific funding sources in the government’s announcement raises questions about the projects’ timeline and economic feasibility. Given the burgeoning competition in the global hydrogen market, Morocco’s success will largely depend on the efficiency and speed of project implementation.
For Morocco, a country striving to augment its manufacturing output, as evidenced by the 5% growth reported in late 2024, these green hydrogen projects are not just an environmental imperative but also an economic one. They offer a potential solution to bolstering industrial development while aligning with global decarbonization trends.
By integrating renewable energy and green hydrogen into its economic fabric, Morocco not only seeks to satisfy its energy requirements but also to establish itself as a pivotal green supplier to Europe’s burgeoning renewable energy demand.