Acciona and Moeve, among the companies selected by Morocco to develop green hydrogen projects in the Sahara

Acciona and Moeve, among the companies selected by Morocco to develop green hydrogen projects in the Sahara

The Moroccan government has selected five international consortia, including Acciona and Moeve, in its ‘Morocco’s Offer’ for the production of green hydrogen, in which it will invest 319 billion dirhams

The Spanish companies Acciona and Cepsa (now Moeve) are part of the international consortia selected by the Moroccan government as part of the so-called ‘Morocco’s Offer’, an ambitious plan to develop the green hydrogen production sector in the country, especially in the three southern provinces, including Western Sahara. 

Five consortia and six projects

During the meeting of the Steering Committee that supervises ‘Morocco’s Offer’, held on 6 March and chaired by the head of the Moroccan government, Aziz Akhannouch, five international consortia were selected to develop six green hydrogen projects in the three southern provinces of Morocco (Dakhla-Rio de Oro, Laayoune-Sakia El Hamra and Guelmim-Noun). The joint investment in these projects amounts to 319 billion dirhams. 

The five national and international investors selected are as follows: 

• ORNX Consortium, made up of Ortus (United States), Acciona (Spain) and Nordex (Germany). It focuses on the production of ammonia, which can be used as a hydrogen carrier and as a fuel in internal combustion engines and fuel cells, constituting a more manageable alternative to pure hydrogen. 
• A consortium formed by Cepsa (Spain) and Taqa Morocco, focused on the production of ammonia and synthetic fuels. 
• Nareva (Morocco), focused on the development of projects related to ammonia, synthetic fuels and green steel. 
• Acwa Power (Saudi Arabia), specialising in the production of green steel. 
• UEG Consortium and China Three Gorges (China), which focuses on ammonia production. 

The meeting of the Steering Committee was also attended by the Minister of the Interior, Abdelouafi Laftit; the Minister of Equipment and Water, Nizar Baraka; the Minister of Industry and Trade, Ryad Mezzour; the Minister of Investment, Karim Zidane; the Minister of the Budget, Fouzi Lekjaa, and the Executive Director of the Moroccan Agency for Sustainable Energy (MASEN), Tarik Moufaddal. 

As agreed at the meeting, the next step will be the signing of preliminary agreements with the selected companies, to allocate up to 30,000 hectares of public land per project. 

Spain contributes its experience

The choice of Acciona and Cepsa as part of the international consortia that will take charge of the six green hydrogen-related projects highlights the important role that Spain plays in this sector. 

As ICEX points out in its report Green Hydrogen in Morocco, ‘Spain is one of the most advanced countries in the field of green hydrogen. In fact, almost 40% of the 5,200 MW in hydrogen projects presented in Europe are in Spain. The Spanish green hydrogen market is structured by regional groupings (hydrogen valleys) or consortia between several companies’. 

According to the same report,

Morocco wants to be a key player in the field of green hydrogen, despite the challenges this entails.

Its goal is to reach 52% installed renewable energy capacity by 2030, compared to the current 40.72%, although this installed capacity represents only 19% of the energy mix of effective generation during 2023. The development of this infrastructure is essential to achieve the green hydrogen targets. 

With this objective on the horizon, the contribution of the experience and know-how of Spanish companies can be decisive, within the framework of ever-improving diplomatic and commercial relations. 

Furthermore, it should be borne in mind that the six approved projects will serve to boost the economy of the three southern provinces of Morocco through the renewable energy and green hydrogen sectors. 

Morocco’s Offer’

On 11 March 2024, the Circular of the Head of Government was published, activating this project. It is an integral framework that covers the entire green hydrogen value chain, and includes the allocation of up to one million hectares for production, the development of critical infrastructure such as ports, gas pipelines and desalination plants, and improvements to the electricity grid. In addition, it offers tax and customs incentives to attract investment and has a structured investor selection process. 

This initiative follows the guidelines outlined by King Mohammed VI during his Throne Speech on 29 July 2023, in which he called on the government to accelerate the implementation of ‘Morocco’s Offer’ in the green hydrogen sector, ‘to ensure that quality requirements are met, to take advantage of our country’s significant potential in this regard and to meet the expectations of the world’s leading investors in this promising field’.

The ‘Morocco’s Offer’ is a great opportunity to deepen trade and investment relations between Spain and Morocco, with companies such as Acciona and Moeve spearheading the initiative. 

As ICEX pointed out in its report on green hydrogen in Morocco,

Spanish companies and investors will find the Moroccan market a favourable environment for investment in green hydrogen.

“Opportunities range from infrastructure to production and the development of related industries. However, it is crucial to carefully consider the established conditions and processes to maximise benefits and align with the country’s sustainable and economic development objectives. In addition to ‘Morocco’s Offer’, the country is developing a series of significant projects related to green hydrogen, attracting international investment and strategic collaborations”.

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