Morocco's Ambitious Green Hydrogen Project in Dakhla: A Step Towards Sustainable Energy
Key Ideas
- Morocco is embarking on a major green hydrogen and ammonia export project in Dakhla, with a production target of nearly one million tonnes per year by 2031.
- The project, with an estimated cost of $4.04 billion for phase 1 and potentially growing to a $25 billion project over multiple phases, involves key partnerships with companies from UAE, Denmark, and Moroccan entities.
- Investment interest is evident in Morocco's green hydrogen sector, with recent announcements of financial support for green hydrogen projects and collaborations for decarbonization efforts in the energy sector.
- The country's hydrogen strategy outlines a comprehensive roadmap from using hydrogen as a feedstock for ammonia production to envisioning a global hydrogen trade and its diverse applications in various sectors by 2050.
Interest is growing around a significant green hydrogen and ammonia export project in Dakhla, Morocco. Dahamco President Tom Hanson announced plans for the project, which aims to produce almost one million tonnes per year by 2031 with an initial cost estimate of $4.04 billion. The project, set to launch soon, will involve exclusive hydrogen and ammonia production for export, primarily targeting the Amsterdam-Rotterdam-Antwerp region. Partnerships with TAQA Morocco, AP Moller Capital, and other Moroccan companies indicate a multi-phase development potentially totaling $25 billion.
The momentum in Morocco's green hydrogen sector is evident as KGAL Investment Management and KfW pledge a €30 million grant for a green hydrogen-based ammonia project. Additionally, plans to introduce green hydrogen into power generation at the Laâyoune Power Plant are being explored through a collaboration between GE Vernova, ONEE, and Nareva.
Furthermore, Morocco's comprehensive hydrogen strategy spans from near-term goals of using hydrogen for ammonia production to a long-term vision of global hydrogen trade and its application in various sectors by 2050. The country, along with the UAE and Oman, is expected to surpass hydrogen production capacities by 2030, aligning with ambitious decarbonization goals and the evolving energy landscape.
Topics
Green Hydrogen
Renewable Energy
Investment
Energy Transition
Decarbonisation
Project Funding
Partnerships
Exports
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