Morocco’s ambitious green hydrogen strategy, spearheaded by the Minister of Energy Transition and Sustainable Development, Leila Benali, promises significant advancements in the country’s energy sector.
Announced in Rabat, this initiative, known as the “Morocco offer,” aims to catalyze investments, reduce the energy bill, and foster local development. However, the true impact of these efforts must be critically examined in the context of industry benchmarks and broader energy goals.
The “Morocco offer” is positioned as a cornerstone for transforming Morocco’s energy landscape. It builds on 15 years of experience in renewable energy development and 32 years of fostering private investment in the energy sector. The initiative aims to promote rigorous infrastructure planning, regulatory reforms, and institutional support to advance the green hydrogen sector. These measures are intended to create jobs, stimulate sustainable economic growth, and enhance energy independence.
While Morocco’s plan is ambitious, it is essential to compare its targets and methodologies with global benchmarks. Countries like Germany, Japan, and Australia have already established comprehensive hydrogen strategies, with substantial investments in infrastructure and technology. For instance, Germany’s National Hydrogen Strategy includes €9 billion in funding and a goal to install 5 GW of electrolysis capacity by 2030. Japan, a pioneer in hydrogen technology, aims to establish a hydrogen society by 2050, with significant investments in hydrogen production, storage, and utilization.
Morocco’s focus on developing a regulatory and institutional framework is crucial but must be matched with substantial financial commitments and technological advancements to compete on a global scale. The effectiveness of these frameworks in facilitating rapid deployment and integration of green hydrogen technologies will be a key determinant of success.
One of the touted benefits of the “Morocco offer” is its potential to create jobs and drive local development, particularly in five key regions with significant renewable energy potential. This aligns with global trends where the hydrogen economy is expected to generate numerous employment opportunities across various sectors, including manufacturing, engineering, and services. However, the scale and quality of job creation will depend on the depth of local industry engagement and the ability to develop a skilled workforce.
Ms. Benali emphasized the role of green hydrogen in reducing Morocco’s energy bill. While green hydrogen offers a pathway to energy diversification and decarbonization, its current production costs are relatively high. According to the International Energy Agency (IEA), green hydrogen production costs range from $3 to $7.50 per kilogram, depending on the technology and scale. Achieving cost parity with conventional fuels will require significant advancements in electrolyzer technology, economies of scale, and supportive policy frameworks.