Iran tensions push China to expand green energy investments in Morocco

Rising geopolitical tensions involving Iran are prompting China to accelerate energy investments in North Africa, particularly in Morocco, as concerns grow over disruptions in key oil shipping routes, according to a report by the Stimson Center.

The shift follows conflict involving the United States, Israel and Iran, which has rattled global oil flows and highlighted the vulnerability of the Strait of Hormuz, critical corridor through which roughly half of China’s seaborne oil imports have traditionally passed.

According to the report, the crisis has triggered a broader reassessment in Beijing, not only pushing up prices but also exposing the risks of relying heavily on a single, geopolitically sensitive region for energy supplies.

China, one of the world’s largest oil importers, is now accelerating what the report describes as a “dual strategy”: diversifying oil and gas sources while expanding investments in clean energy.

North Africa is emerging as a key pillar of this strategy, offering geographic proximity, relatively stable partners and strong renewable energy potential.

Analysts say the shift is not a sudden pivot but rather an expansion of existing ties built under the Belt and Road Initiative.

Countries such as Egypt and Morocco are gaining importance as strategic hubs, providing alternative supply routes that largely bypass Hormuz while supporting China’s long-term climate ambitions.

While Algeria can help meet short-term hydrocarbon needs, the report highlights Morocco as a key long-term partner, particularly in green energy.

Morocco is seen as well positioned for projects in green hydrogen and energy storage, thanks to its abundant solar resources, ambitious renewable targets and supportive policy framework.

Since at least 2025, it has become a central anchor for China’s clean energy expansion in Africa.

The two countries have signed multibillion-dollar agreements in sectors including green hydrogen, solar and wind power, as well as low-carbon aluminum production.

Major Chinese firms such as State Grid Corporation of China, State Power Investment Corporation and Shanghai Electric are leading these initiatives.

The report notes that Chinese involvement is moving beyond equipment exports, with investments increasingly covering full value chains, including electric vehicle batteries and hydrogen production.

Egypt, meanwhile, complements this strategy by offering industrial capacity and logistics routes that largely avoid the risks associated with the Strait of Hormuz.