In a bid to strengthen hydrogen production in Morocco, the German initiative Power-to-X Development Fund announced a substantial €270 million grant opportunity.
South Africa, Brazil, Egypt, Georgia, India, and Kenya are also beneficiaries of this grant, aimed at enhancing project profitability and facilitating additional financing options.
The initiative, launched in 2023 with support from the German Ministry of Economic Cooperation and Development, sets a deadline for applications on March 1st.
Industrial projects meeting specific criteria could secure grants of up to €30 million each.
Thomas Engelmann, head of PtX, highlights the fund’s commitment to projects surpassing €100 million, particularly vital for industries reliant on hydrogen.
The fund’s scope covers various stages of the PtX value chain, from renewable energy production to hydrogen distribution. Engelmann plans to distribute funds across eight to ten projects in multiple rounds between 2024 and 2027.
Janne Rajpar, director of the KfW office in Rabat, expresses confidence in Morocco’s readiness to leverage these grants, citing the maturity of local projects.
Florian Ziegler, also from KfW, emphasizes Germany’s dedication not only to advancing green hydrogen industries in Morocco but also to facilitating skill transfers and job creation.
In recent years, Morocco has been actively inviting investments in green hydrogen. Reports show that sourcing green hydrogen from Morocco has several benefits, making it a good option for producing environmentally friendly fuel at a lower cost.
A report from the European Conservatives in 2023 outlines significant plans for investing in green hydrogen and solar panels in Europe, with a focus on Morocco, Egypt, and Southern Africa.
According to the European Investment Bank, Africa has the potential to become a major player in green hydrogen production, representing a massive investment opportunity worth 1 trillion euros.
Projections suggest that by 2035, the continent could produce 50 million tonnes of green hydrogen annually, selling it at a highly competitive price of $2 per kilogram or less.
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