Endowed with considerable renewable energy resources, North Africa is set to become a global hub for exporting green hydrogen, the « fuel of the future » that could reshape the global energy landscape with a potential market worth $1.4 trillion annually, according to a study by the British firm Deloitte. These exports are expected to generate an average of $110 billion per year for the region. Enough to entice dreams for the Kingdom and its neighbors, all vying to carve out the largest piece of the pie.
Just this past Saturday, February 17, Minister of Energy Transition and Sustainable Development Leila Benali met in Munich with German Economy Minister Robert Habeck to discuss ways to strengthen bilateral cooperation in energy, particularly in green hydrogen, as the Federal Republic plans to import up to 70% of its green hydrogen needs to achieve carbon neutrality by 2045.
Germany, Portugal, Belgium, the Netherlands, Great Britain… Morocco has forged several partnerships in recent years to attract potential investors. Studies have already been initiated to develop green hydrogen production projects, particularly in the southern region, which boasts ideal climatic conditions and great solar and wind potential.
Among the major investors showcasing their ambitions in Morocco are Danish group CIP, Saudi Acwa Power, Emirati Taqa, Norwegian Scatec, American CWP, and French Total, alongside local operators like Falcon, Gaia Energy, and OCP Group, which plans to invest $7 billion in an ammonia production plant using green hydrogen.
Awaiting « Morocco’s offer »
These projects underscore Morocco’s potential to develop the sector, but their realization is delayed pending the activation of « Morocco’s offer, » commissioned by the king in November 2022 and validated last July, but still awaiting implementation.
The implementation of this offer depends on the publication of a plan that will define not only the regulatory and institutional framework but also a set of incentives covering the entire value chain to attract investors. This offer will also include the blueprint for all necessary infrastructure for developing the sector.
« Investments in green hydrogen amount to billions of dollars, and it’s always challenging to negotiate and convince large investors to come and settle in the kingdom. If Morocco’s offer continues to lag, we could lose partners who may turn to other neighboring countries where projects are already under development, » regrets energy management consultant Saïd Guemra, contacted by TelQuel.
Saïd Guemra highlights the example of Total Eren, which began developing the Nour green hydrogen production project in Mauritania in late 2022 in partnership with British Chariot. This comes after a similar project was announced earlier in Morocco but was delayed due to the unavailability of necessary land for construction. « The more delays we have in realizing announced projects, the less successful we will be in attracting investments in the future. Investors will always go where there are demonstration projects, experience, a qualified workforce, and technological mastry, » emphasizes Saïd Guemra.
With two major green hydrogen production projects, Mauritania is now among the most attractive countries on the continent for clean energy investors. In addition to the Nour project, Mauritanian authorities signed an agreement in March 2023 with a consortium led by the German group Conjuncta for the construction of a complex to produce this non-polluting gas, totaling over 30 billion dollars.
Recently, on February 8, the President of the European Commission Ursula von der Leyen and Spanish Prime Minister Pedro Sánchez, during their visit to Mauritania, pledged a series of funding and development projects for green hydrogen production in the country, as part of the European Union’s energy transition strategy. Could Mauritania then compete with Morocco in the long term?
A geographical advantage
Asked about this issue, Badr Ikken, associate director at energy transition consulting firm Gi2, believes the southern neighbor has significant advantages for developing the sector, especially in low-carbon iron industry thanks to its mining reserves.
However, this expert emphasizes Morocco’s geographical location, which provides a competitive edge for transport and exporting green hydrogen to a high-demand European market seeking to reduce its dependence on Russian gas.
« Mauritania has great potential for integrating heavy industries and could effectively develop the production and export of green steel, but for exporting green hydrogen and its derivatives, Morocco is better positioned and offers lower transport costs, » explains the former director-general of the Solar Energy and Renewable Energies Research Institute (IRESEN).
![](https://static.telquel.ma/content/uploads/2022/09/16fba28cb5093a0db63f93bbb5bd565f-700x420.jpg)
This geographical advantage offers Morocco a better positioning compared to other potential major exporters of green hydrogen, namely Chile, Australia, and Saudi Arabia, which have already developed local production. This advantage applies whether in the short term for exporting green ammonia (a nitrogen fertilizer), methanol (methyl alcohol), or e-fuels (green synthetic fuels) via maritime transport, or in the medium and long term for exporting green hydrogen in its gaseous state through pipelines.
« Morocco annually imports two million tons of ammonia, and we can use the same infrastructure to export it. The same applies to methanol and e-fuels. The big challenge in the medium and long term remains the development of infrastructure for transporting large volumes through pipelines and gas pipelines, » insists Badr Ikken.
Pipeline development
Regarding infrastructure and green hydrogen transport via pipelines, new competitors are emerging for Morocco. These are the neighboring countries to the east sharing the same natural advantages as the kingdom and already connected to Europe via the gas pipeline linking Algeria to Italy via Tunisia.
During his visit to Algiers on February 8, German Economy Minister Robert Habeck signed a partnership with the country’s authorities for the development of cooperation in green hydrogen. An experimental project involving a 50-megawatt plant is set to be implemented within Sonatrach facilities in Arzew, in the Oran province.
« Several large companies are currently positioning themselves in Morocco, conducting studies and identifying lands, as is the case in neighboring countries. Therefore, I wouldn’t say that Maghreb countries are surpassing us. Algeria has solar potential over larger surfaces, but wind energy there is less developed than here. Thus, Morocco’s energy mix allows for production at a more competitive cost, » explains Badr Ikken. And he emphasizes, « It is necessary to develop infrastructure and connections with Europe if we want to maintain the same competitive advantages in the medium and long term. »
According to this expert, the development of these infrastructures should be done regionally, with the goal of connecting Morocco to the European hydrogen transport network (European Hydrogen Backbone) announced for 2030, to align with the Re-power Europe program. This aims to achieve, by 2040, 31,000 of miles pipeline networks, through the creation of new networks or adaptation of existing ones.
The European Union aims to achieve an annual production of 10 million metric tons of renewable hydrogen by 2030 and to import the same amount, which could only come from Africa. “To succeed in its energy transition, Europe needs gigantic quantities of green hydrogen and cannot rely solely on importing from one country, » clarifies Badr Ikken. This is a way of saying that there will be room for everyone.
In conclusion, « To position ourselves in the green hydrogen market, we need inter-ministerial and institutional work with strong coordination to avoid delays and inconsistencies. We should
quickly reactivate the national hydrogen commission to oversee the various strategies being deployed. »
Written by Safae Hadri, edited in English by Eric Nielson