Morocco is positioning itself as a key potential supplier of low-cost green hydrogen to Europe by utilizing its abundant solar and wind resources in the south, as well as its proximity to Spain for a gas pipeline connection.
- Lack of firm agreements
- Morocco continues to boost its potential
However, uncertainties related to demand, export infrastructure, and incentive policies on both sides are hindering progress, as reported by Morocco World News.
According to a recent report by Hydrogen Insight, Morocco aims to produce 4TWh of hydrogen for domestic use and 10TWh for export annually by 2030. The national hydrogen strategy unveiled in 2021 aims to capitalize on the country’s renewable energy potential to produce affordable green hydrogen for local markets and exports.
The EU views North Africa as a production hub and has signed agreements with Morocco to cooperate on regulatory frameworks and finance production and export infrastructure. At the COP28 climate summit, Brussels pledged 50 million euros to support Morocco’s decarbonization efforts, including hydrogen initiatives.
Morocco’s competitive advantage lies in its world-class solar and wind resources, potentially offering hydrogen to Europe at a lower cost. The proximity to Spain allows for a pipeline connection, considered the most cost-effective transport method for hydrogen.
Lack of firm agreements
Analysts discuss whether Morocco’s production cost advantage can offset the high costs of building an undersea hydrogen pipeline to Spain. Formal agreements for such projects are pending. While export projects face uncertainties, domestic demand for green hydrogen from the large fertiliser producer OCP Group could benefit Morocco.
Most projects are in early planning stages. Projects like the 8GW green hydrogen project by HDF Energy and Falcon Capital are awaiting details on Morocco’s incentive program to move forward.
Morocco continues to boost its potential
Morocco proposes a 5,600-kilometre hydrogen pipeline to link 11 West African nations, including Mauritania. The Nigeria-Morocco pipeline aims to replace gas supplies cut off when Algeria suspended exports to Morocco. Developers plan gigawatt-scale green hydrogen projects in Morocco, with TotalEnergies leading initiatives in Guelmim-Oued Noun.
Developers are eyeing a major renewable ammonia facility in the Guelmim-Oued Noun region, with projects like CWP Global’s proposal for a 15 GW wind and solar capacity project in Tan-Tan. Morocco’s hydrogen ambitions may require stronger signals of long-term support and political guarantees from Europe.
