US launches first federally funded project in Morocco's Sahara

U.S. Ambassador to Morocco Duke Buchan III said Tuesday that relations between Washington and Rabat are entering a new phase focused on investment and economic cooperation, highlighting what he described as the first federally funded U.S. project in Morocco’s southern provinces.

Speaking at a ceremony in Laayoune marking the signing of a grant from the U.S. Trade and Development Agency (USTDA) to the Ornx Alliance, Buchan said the project demonstrates Washington’s commitment to expanding its economic presence in the region.

The event was attended by regional officials, elected representatives, military officials and business leaders.

Buchan said the visit marked his first trip to Laayoune, adding that he had previously visited Dakhla and hoped to return to both cities.

“This is an important day for the people of the Moroccan Sahara and for U.S.-Morocco relations,” he said.

The ambassador noted that Morocco and the United States share one of the world’s oldest diplomatic relationships, recalling that Morocco was the first country to recognize U.S. independence and that the bilateral Treaty of Friendship remains the oldest unbroken treaty in U.S. history.

He said the focus now is not on history but on building the future through investment and economic partnerships in Morocco’s southern provinces.

Buchan reaffirmed Washington’s support for Morocco’s autonomy proposal, describing it as “the only credible path” toward a lasting resolution of the Sahara dispute. He added that more than 100 countries support the initiative.

The ambassador said the USTDA grant represents the first U.S. federal funding for a project in the Moroccan Sahara. The funding will support preliminary engineering studies for a project led by Ornx Morocco, a Moroccan-American consortium planning to develop a hydrogen and ammonia production facility in Laayoune.

According to Buchan, the project is expected to create hundreds of jobs while laying the foundation for additional investment in Morocco’s clean energy sector.

He said U.S. support for Morocco’s autonomy initiative extends beyond political statements and is increasingly reflected in concrete investment projects aimed at promoting economic development and employment in the region.

Buchan added that U.S. companies are showing growing interest in investing in Morocco’s southern provinces, citing the region’s economic potential, political stability and business environment as key factors attracting investors.

The ambassador also praised King Mohammed VI’s development strategy for Morocco’s southern provinces, saying the planned hydrogen and ammonia project would help create jobs, strengthen infrastructure, integrate the region into global clean energy value chains and provide competitively priced ammonia for domestic and international markets.

He described the project as the beginning of a broader phase of economic cooperation between Morocco and the United States, saying it is expected to pave the way for additional American investments in the region.

“King Mohammed VI saw an opportunity for development in the Moroccan Sahara when others saw something different,” Buchan said. “Laayoune is no longer only the gateway to southern Morocco. It has become a symbol of the future of the U.S.-Morocco partnership and our shared vision for prosperity.”