Green Hydrogen Investment in Morocco: Balancing Sustainability and Controversy
Key Ideas
  • Morocco's green hydrogen investment process is progressing with land allocations, potentially including areas in Western Sahara.
  • 72GW of wind and solar generation projects have been identified, indicating significant growth in green hydrogen prospects in Africa.
  • Challenges such as project bankability, commercial agreements, and competition for prime locations are being addressed to ensure sustainable development.
  • The article raises questions about whether this investment in green hydrogen will bring positive outcomes for Africa and its energy sector.
The article discusses the rapid development of green hydrogen prospects in Africa, particularly focusing on the ongoing green hydrogen investment process in Morocco. The first round of land allocations in Morocco is nearing completion and may include areas in the contested territory of Western Sahara. African Energy has identified projects that require 72GW of wind and solar generation, highlighting the potential for substantial growth in green hydrogen projects in the region. However, the article poses critical questions regarding the sustainability and impact of these investments. It questions the feasibility of making capital-intensive projects bankable in Africa, especially with lenders demanding high-risk premiums. Additionally, concerns are raised about establishing commercial offtake agreements without disadvantaging early investors who may face higher costs. The competition for prime sites with favorable conditions like wind, solar exposure, water availability, logistics, and market access is intensifying. The article draws parallels to historical resource scrambles in Africa and emphasizes the need for sustainable development this time around. It prompts readers to consider whether the current green hydrogen rush will lead to positive, enduring benefits for the continent and its energy landscape. Overall, the piece reflects on the complexities and opportunities associated with the green hydrogen investment wave in Africa.
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