The royal vision for Morocco’s green hydrogen offer is following the path of a national interest in green energy, fuelled by self-sufficiency aspirations in times of heightened supply uncertainty.
Last week, King Mohammed VI chaired a meeting with Renewable Energy Minister Leila Benali, Economy and Finance Minister Nadia Fattah Alaoui, Royal Advisor Ali El Himma and Minister of Interior Abdelouafi Laftit.
The King’s directive was clear: considering its capabilities and resources, Morocco is to develop a competitive, large-scale all-encompassing hydrogen offer as soon as possible, covering the entire value chain of the green hydrogen industry in Morocco.
According to a statement from the Royal Cabinet, the plan should include, in addition to the regulatory and institutional framework, the necessary infrastructure scheme to make this ambition a reality, positioning Morocco among countries with high potential in the emerging field of green hydrogen and its uses.
**Cost projections in light of current economic context**
This project is the culmination of months of research, consultations and talks with potential partners. In early 2021, the previous government elaborated a green hydrogen roadmap estimating the cumulative investment cost.
According to the roadmap, MAD 90 billion are required to bring the project to reality by 2030, and BAM 760 billion by 2050.
“Due to its optimal geographical location and its exceptional renewable energy resources, Morocco can become a key player in the development of the green hydrogen industry at the regional level and can capture up to 4% of global demand for green molecules,” says the report.
“The objective is to position Morocco today on green hydrogen as a technological solution for energy conversion and storage, following the example of Japan, Germany, France, Denmark, Spain …” said the same source.
This project, although it promises a strong return on investment, will be even more costly in the current international economic context, considering the rise of raw material prices and ongoing global inflation.
Morocco’s green hydrogen ambitions however, are highly appealing to both investors and potential partners.
As Hespress EN previously reported, the Moroccan Ministry of Renewable Energy has been successfully and successively kneading partnerships with government and energy actors to bring its green hydrogen plans to life.
Israel, the UK, the Netherlands, Germany and Finland have all penned agreements and MoUs with Morocco to boost green hydrogen and renewables’ production in the Kingdom.
Some of the sector’s biggest companies such as Chariot Oil and Gas have also expressed intent to invest in this ambition.
But Morocco’s challenge seems to be less in securing funds for this massive objective, and rather depends on the competitiveness of the Moroccan offer, amid rising green hydrogen interest on the African continent.
**African green hydrogen sector is on the rise**
Due to the ongoing energy crisis, and growing global interest in sustainable energy alternatives, Africa and its governments are attempting to invest in renewables as much as possible.
Egypt and South Africa’s projected investments in the energy transition plan announced at the recent COP27 climate conference are highly significant for the market’s future.
South Africa has set a goal of attracting up to $250 billion into its green hydrogen industry by 2050, in order to “take advantage of abundant solar and wind energy sources.”
According to Bloomberg, the industry could create 1.4 million jobs and generate up to $30 billion in annual revenue by 2050.
For its part, the Egyptian Suez Canal Economic Zone signed $83 billion worth of green energy agreements during the international climate conference it hosted this month, exceeding the expectations of the economic zone initially set at $25 billion.
Egypt signed nine framework agreements with international power companies for green hydrogen and ammonia facilities in the economic zone along the Red Sea.
These facilities would collectively produce up to 7.6 million tons of green ammonia and 2.7 million tons of hydrogen per year.
Although Morocco is currently a regional pioneer in renewables, its NOOR solar sun project struggled to reach the hoped-for returns, considering it produces at one of the highest prices on the market.
Despite the project being a true and significant lever for Morocco to achieve its energy independence and sustainability goals, the execution is key.
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