The “Morocco Offer,” an attractive program designed to stimulate the development of the green hydrogen sector, is now in the implementation phase to align it with the needs of investors and position the Kingdom as a competitive player in this emerging and promising field, in line with the High Royal Directives.
The decision, issued on Mondy by Morocco’s Head of Government Aziz Akhannouch, stressed that this offer is “based on a comprehensive, practical, and transparent approach that gives investors a clear vision.”
It further noted that “the state has identified one million hectares of public land, and during the first stage, 300,000 hectares will be provided to investors in the form of plots of land ranging from 10,000 to 30,000 hectares, according to the size of the expected projects.”
As per the press release, 100 national and international investors who express strong and active interest in generating green hydrogen in Morocco have been identified.
“A stimulating framework and support for project holders” have also been implemented to ensure the successful implementation of the “Morocco Offer”. This includes tax incentives, fiscal privileges, and the provision of land totaling up to one million hectares.
Green hydrogen project holders can apply for the incentives mentioned in the charter. As for “project holders completed based on the local industrial integration logic, whether it’s horizontal or vertical integration, they will also benefit from the same charter’s incentives, and subject to conditions to be determined by regulatory texts.”
Investors, too, will benefit through “tax and customs incentives in the form of exemptions from import duties and value-added tax, for goods purchased locally or imported, with the possibility of developing one or more zones from the industrial acceleration zones for the benefit of the industrial system related to green hydrogen.
A response to domestic demand
“The state is confirming its commitment to providing the land and contributing to meeting the growing demand for renewable energy sources in Morocco,” said Amine Benouna, an energy expert, considering that the Morocco Offer is not only a response to the local and global investors’ interest but also a reaction to the demand expressed by the OCP group regarding its strategy for producing green ammonia by 2031.
In a statement to Hespress AR, Benouna noted that “the production of green hydrogen in large and abundant qualities will allow for its global price reduction and ensure its competitiveness, in line with Morocco’s goal of moving towards clean energy.”
He described the scale of expected investments in the green hydrogen sector as “strategic and important, in which the private sector will play a crucial role in collaboration with the state and supported within the framework of investment grants.”
“The domestic market for green hydrogen relies primarily on local production, as per the government’s decree”, noted Benouna, highlighting that “the sector’s value chain will start from local supply to international supply, and then open up to wider markets.”
Compared to offers from neighboring competing countries, the expert stressed that “the Morocco Offer stands out as a response to the dynamics of an available and expressed domestic demand, which has been seriously considered since 2015 when electricity prices from renewable sources became cheaper.”
“The demand volume ranges from 150 to 200 thousand tons currently required in Morocco, with new actors and investors expected to join the market,” affirmed Benouna, applauding “the public efforts to encourage massive private investments through grants to support green hydrogen projects.” This pertains to infrastructure development and the production of electrolyzers, as well as wind turbines and solar panels.
Promising prospects:
Abdessamad Mlaoui, an expert in energy technologies and sustainable energy transition, highlighted the significant economic, energy, environmental, and strategic benefits of the Morocco Green Hydrogen Production Offer. He said that “it fortifies Morocco’s position, fulfills environmental commitments regarding the reduction of polluting gas emissions, and aligns with its energy diversification strategy.”
The expert highlighted pre-planned strategies for 2024-2032 before launching the Morocco Green Hydrogen Production Offer, noting that “Morocco aims to produce 3 million tons of green hydrogen by 2030, including 1 million tons in the upcoming years.”
Given the various incentives and legislative or technical factors the country provides, “Morocco could potentially secure 4 to 10 % of the global demand for green hydrogen by 2030,” predicted the expert.
Mlaoui explained that “Morocco seeks to provide 4 terawatt-hours domestically by 2030, with over 10 terawatt-hours planned for global exports as part of an ongoing strategy.” This approach “reinforces Morocco’s renewable energy development and is expected to generate 100,000 jobs, accounting for 10 to 15 % of the workforce.”
The expert further highlighted a significant investment project in Tangier with the EU and the Power to X project for green hydrogen with Germany. “These initiatives are projected to have positive environmental impacts by reducing greenhouse gas emissions, offering an alternative to carbon offsetting.”
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.