Morocco's green ammonia production is set to advance into a new development phase, following the announcement of direct U.S. funding for one of the most significant projects planned in the city of Laayoune. This initiative is a crucial step in the country's strategy to transform into a global hub for green hydrogen and its derivatives. The U.S. Trade and Development Agency has signed a grant agreement amounting to $5.7 million with the American company Ornx, aimed at financing the engineering studies for the initial phases of the project, which targets an annual production capacity of 560,000 tons, as reported by the specialized energy platform based in Washington.
This funding highlights the increasing importance of green ammonia production in Morocco, as part of a government strategy that aims to harness wind and solar resources while attracting substantial foreign investments. The Moroccan government has allocated approximately one million hectares for hydrogen-related projects and their derivatives. This U.S. funding represents the first federal support for a green hydrogen project in the Moroccan desert, coinciding with an expansion of international partnerships aimed at developing this sector amidst expectations of rising global demand for low-emission fuels in the coming years.
Project Details and Development Plan
In February of this year, the Moroccan government entered into an agreement with a consortium that includes Ornx, U.S.-based Ortus, Spain’s Acciona, and Germany’s Nordex, to reserve land designated for the implementation of the project in Laayoune. The initial studies are set to commence this year, led by the American company KBR, with participation from General Electric Vernova, Electric Hydrogen, and Terrapower, to assess the engineering, economic, environmental, and financial aspects of the project. Total expected investments in this massive undertaking are around $4.5 billion, with the first phase involving the construction of a fully integrated industrial facility for green ammonia production, along with a financial model extending over 25 years that includes borrowing and investment options.
Peter Gish, the CEO of Ornx, emphasized that the grant marks a significant milestone in accelerating the project. He confirmed that the results of the studies will lead to the final engineering design phase, paving the way for a final investment decision in the near future. The project will rely on a comprehensive renewable energy system comprising over 2 gigawatts of wind and solar power, alongside electricity storage systems, 900 megawatts of electrolysis units for hydrogen production, and a seawater desalination plant, all of which will support green ammonia production in Morocco. Gish affirmed that the company will continue to collaborate with the U.S. Trade and Development Agency, the U.S. embassy in Rabat, and other partners to advance the project and secure necessary funding, ensuring its transition to commercial implementation as planned.
Green Ammonia Production Initiatives in Morocco
Last year, the Jorf platform emerged as one of the most significant strategic initiatives for green ammonia production in Morocco, being developed by the Office Chérifien des Phosphates in partnership with Hydrogel. This project recently secured a non-repayable grant of €30 million (approximately $31.31 million) from the German Green Hydrogen mechanism "PTX" to support its implementation and accelerate its development and operational phases. The platform aims to produce 100,000 tons of green ammonia annually by the end of 2026, leveraging electricity generated from wind and solar energies, thereby enhancing green ammonia production in Morocco and reducing emissions associated with traditional fertilizer production.
The project will be located within the existing fertilizer production site of the Office Chérifien des Phosphates at the Jorf Lasfar port, benefiting from modern renewable energy infrastructure. Hydrogel will own the facility and will be the primary buyer of ammonia for use in nitrogen fertilizer manufacturing. Although the initial plan targeted an annual production of 200,000 tons when announced in 2023, the project is expected to contribute to reducing carbon dioxide emissions by approximately 300,000 tons per year, while creating specialized jobs and fostering innovation in green ammonia production within Morocco.
As reported by attaqa.net.
