Morocco and UAE Launch $25 Billion Green Hydrogen Venture in Dakhla

Tuesday 10 December 2024 - 11:55

By: Dakir Madiha

Morocco and UAE Launch $25 Billion Green Hydrogen Venture in Dakhla

A groundbreaking joint venture between Morocco and the United Arab Emirates is set to revolutionize the renewable energy landscape, with a massive $25 billion investment in green hydrogen and ammonia production in Dakhla, southern Morocco.

Strategic Investment Overview

The renewable energy company Dahamco leads this ambitious initiative, which has already secured full governmental approval and local permits. The project represents a significant strategic move in Morocco's renewable energy transformation, with the first phase projected to cost approximately $4 billion and targeting an annual production of one million tons by 2031.

Project Development and Timeline

Dahamco's President, Tom Hanson, revealed that the company had proactively secured land rights and local authorizations even before the Moroccan government's green hydrogen development announcement in November 2022. The regional investment center (CRI) granted approval in July 2022, with the majority of required land already registered.

Hanson emphasized that the project's design is complete, investors are committed, and commercial prospects are clearly defined. The company is now fully prepared to move forward with implementation.

Phased Expansion Strategy

The project's development strategy includes an initial phase by 2031, with subsequent expansion phases planned every four to five years. This approach allows for incremental capacity growth and adaptability to emerging market dynamics.

National Energy Transformation

This venture is integral to Morocco's broader national energy strategy. In late 2023, Moroccan Minister of Economy and Finance Nadia Fettah Alaoui announced plans to invest nearly $60 billion in the energy sector, with over 90% of funds dedicated to hydrogen and ammonia projects.

Key Investors and Stakeholders

The project has attracted significant investment from prominent entities, including:
- Taqa Morocco
- AP Moller Capital (Denmark)
- Ornx Boujdour
- OCP Group, a prominent player in Morocco's phosphate industry

Strategic Implications

The Moroccan government's robust support for this project underscores its commitment to:
- Strengthening renewable energy infrastructure
- Reducing dependence on fossil fuels
- Positioning Morocco as a pivotal player in the global green energy transition

By embracing innovative green hydrogen technologies, Morocco and the UAE are setting a precedent for sustainable energy development in the region and beyond.