In Morocco, a pioneering green hydrogen project is poised to explore new international funding opportunities as clean energy initiatives in North Africa gain traction among global financial institutions. Developers are keen on aligning their projects with European standards for sustainability and low-carbon energy, thus enhancing their attractiveness to potential investors.
The southern region of Morocco is particularly focused on leveraging European funding after securing initial support from the United States to finance essential preliminary studies for project development. This initial backing opens the door for new investment flows in the coming years.
According to detailed data from the specialized energy platform based in Washington, the project involves the ORNX alliance, which includes the American company Ortus Climate Mitigation and the Spanish-German joint venture Acciona & Nordex Green Hydrogen. The primary objective of this initiative is to produce green hydrogen and ammonia in the city of Laayoune, located in the Moroccan desert, with a significant portion of the output aimed at international markets, particularly the European market.
Green Hydrogen and Ammonia Production in Morocco
The Moroccan hydrogen and ammonia project recently received a substantial grant of $5.7 million from the U.S. Trade and Development Agency (USTDA) to fund feasibility studies and preliminary engineering assessments. These studies will help identify the technical and commercial requirements crucial for the project's success.
This grant agreement was signed in Laayoune in late July 2026, in the presence of both U.S. and Moroccan officials, marking a significant milestone in transforming the project from a mere investment idea into a financeable venture. The studies aim to outline key technical and commercial aspects before making future investment decisions, including the evaluation of infrastructure, required technologies, implementation costs, and economic feasibility.
To realize the green hydrogen project in Laayoune, the targeted investments amount to approximately $4.5 billion, making the acquisition of long-term funding sources a critical factor for advancing to the execution stage.
Alongside U.S. support, the Spanish-German alliance involved in the development of the green hydrogen project in Morocco has commenced efforts in Europe to seek additional funding. The alliance has sent its development manager, Raúl Manzanas Otxagavía, to Brussels for discussions with European institutions regarding the project’s eligibility for funding, as reported by Africa Intelligence.
These efforts are concentrated on ensuring that the project aligns with European regulations pertaining to green hydrogen and sustainable investments. Developers are working diligently to prepare the project to meet the necessary criteria for accessing European financial institutions in upcoming phases.
Aligning with European Standards
The compatibility of Morocco's green hydrogen project with European legislation is a crucial element for its access to financing and European markets, particularly given the European Union's reliance on specific regulations to classify hydrogen produced from renewable sources. One of the prominent regulations is the Renewable Fuels from Non-Biological Sources (RFNBO) system, which sets the necessary standards for certain types of fuels and hydrogen to be considered produced from renewable sources under European legislation.
This requirement is especially significant for the Moroccan green hydrogen project as it relies on electricity generated from renewable energy sources to power electrolysis for hydrogen production, which will subsequently be utilized in the manufacture of green ammonia.
Developers are striving to align the project with the European Union's Green Taxonomy, which establishes criteria for identifying economic activities that can be classified as environmentally sustainable investments. Compliance with these standards is expected to enhance the project's chances of securing funding from European financial institutions, including the European Investment Bank and the European Bank for Reconstruction and Development, provided that the project meets the required conditions.
The pursuit of European funding is also linked to the EU's goals to accelerate the transition to renewable energy sources and reduce reliance on fossil fuels. The REPowerEU program is one of the key European initiatives in this regard, aiming to promote the widespread adoption of renewable energy and develop imports of renewable hydrogen from outside the EU.
Given Morocco's geographical proximity to the European market, combined with its abundant solar and wind resources, the green hydrogen project stands to benefit significantly. The clean ammonia production pathway offers an additional avenue for export, as hydrogen generated from renewable electricity can be utilized in ammonia manufacturing, which is integral to various industries and can be transported via maritime supply chains.
Projected solar and wind capacities associated with the project could exceed 2 gigawatts, alongside approximately 900 megawatts of electrolytic capacity for hydrogen production. The project also incorporates systems for electricity storage and a seawater desalination plant, which will provide part of the necessary infrastructure for the operational hydrogen and ammonia production facility.
Plans indicate a target production of around 560,000 tons of green ammonia annually, leveraging hydrogen, making this one of the major projects planned in the country. Morocco aims to develop a domestic hydrogen industry linked with external markets. The moves to secure European funding are particularly significant, as European institutions could contribute a portion of the necessary financing if the project demonstrates compliance with sustainability and renewable hydrogen standards.
Morocco is planning to produce approximately 3 million tons of green hydrogen annually by 2030, utilizing its renewable energy potential and seawater desalination capabilities, which would accelerate the achievement of its carbon neutrality goal by 2050. As one of the six countries globally with significant potential for green hydrogen production and its derivatives, Morocco could capture about 4% of global demand by around 2030. Official forecasts suggest that annual revenues from green hydrogen demand in Morocco could reach 22 billion dirhams (approximately $2.1 billion) by 2030, soaring to 330 billion dirhams (approximately $31.2 billion) by 2050.
As reported by attaqa.net.
