Sahamco Holding BV has completed advanced pre-feasibility studies for the first phase of a planned $25 billion green hydrogen and renewable ammonia complex in Morocco’s Dakhla-Oued Eddahab region.
The developer is targeting a final investment decision (FID) in the third quarter of 2027, with commercial operations expected to begin in 2031.
The first phase is estimated to require an investment of approximately MAD 40 billion ($4 billion) and produce around 1 million tonnes of renewable ammonia annually. The project could eventually expand capacity to between 4 million and 5 million tonnes per year, positioning it as a potential large-scale supplier to international markets.
The initial configuration includes approximately 1.5 GW of alkaline electrolysis capacity. The overall development covers around 553,000 hectares, although the full land area should not be confused with the footprint of the industrial facilities themselves.
Le Matin.ma+2
Renewable ammonia production and export strategy
The project is designed as an integrated industrial complex combining renewable electricity generation, hydrogen production and ammonia synthesis. Its initial output would primarily target export markets, particularly Europe and the Amsterdam-Rotterdam-Antwerp (ARA) logistics hub, which serves major industrial and chemical markets.
Renewable ammonia is an established industrial feedstock, particularly for fertilizer production, and is increasingly considered a potential hydrogen carrier and low-carbon fuel. However, its commercial prospects will depend on production costs, certification requirements, transport infrastructure and the availability of long-term offtake agreements.
Sahamco’s development strategy also includes partnerships covering engineering, project development and electrolysis technology. The company identifies NetZeroWorx as its development partner and INEOS Electrochemical Solutions as a technology partner. INEOS has experience in alkaline water electrolysis, although the precise scope of its contractual involvement in the Dakhla project has not been established.
Beyond energy production, the development includes a local industrial integration program intended to involve Moroccan businesses, suppliers and technical service providers. This could create opportunities in equipment supply, maintenance, engineering and other industrial services, although specific partnerships and local procurement targets have not yet been disclosed.
The project also envisages an agricultural component covering up to 10,000 hectares. Its development raises questions about water availability, land use and the selection of agricultural activities. These considerations are particularly important in the Dakhla region, where large-scale industrial production and agricultural expansion would both need to account for limited water resources.
The scale of the proposed land allocation, approximately 553,000 hectares, also makes the project’s environmental and land-use implications important considerations alongside its energy and industrial objectives.
FID targeted for 2027
Despite completing advanced pre-feasibility work for the first phase, Sahamco has not yet reached a final investment decision or disclosed a completed financing structure. Further engineering studies, financial arrangements and commercial agreements will be necessary before construction can proceed.
The developer maintains its target of reaching FID in the third quarter of 2027, with the first phase scheduled to enter commercial operation in 2031. The potential expansion to 4 million to 5 million tonnes of annual ammonia production remains a longer-term ambition rather than committed capacity.
For Morocco, the project would add another large-scale renewable hydrogen and ammonia development to its strategy of building an export-oriented industrial sector around renewable energy. Its eventual competitiveness will depend not only on access to solar and wind resources, but also on water supply, electricity costs, infrastructure development and the ability to secure buyers willing to commit to long-term purchases of renewable ammonia.
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