Western Sahara Resource Watch: UAE billions to controversial hydrogen project on occupied land

Western Sahara Resource Watch: UAE billions to controversial hydrogen project on occupied land

Dahamco, a Moroccan-UAE private venture, has announced a plan to invest $25 billion in a green hydrogen and ammonia production facility in Dakhla, a city located in occupied Western Sahara. The project’s first phase, valued at approximately $4 billion, aims to produce one million tons of green hydrogen annually by 2031, with subsequent phases planned every four to five years. 

The Moroccan Official Journal states that Dahamco was established in June 2022, with headquarters in Dakhla. 

Dahamco appears to be part of the UAE-based holding Sahamco, which describes itself as “a development platform for utility-scale hydrogen projects in the Atlantic Coastal Sahara”. On its website, Sahamco showcases its “Project Morocco”, located in Dakhla, as depicted on a map showing Western Sahara as part of Morocco. Sahamco claims it has 553,000 hectares of land allocated to it by “local authorities”.

The specific nature of the relationship between Dahamco and Sahamco is unclear. It appears that Dahamco operates as a subsidiary or development arm within the broader Sahamco venture, given the alignment in their project objectives and timelines.

What is clear, is the project’s intention to export its production in occupied Western Sahara. Specialised media report that the ammonia and hydrogen production will be exclusively for export, especially to the Amsterdam-Rotterdam-Antwerp region in the Netherlands and Belgium, for use in industry and in the maritime transport sector. The “advantageous shipping distances to European off-takers were reportedly also highlighted by Sahamco’s director in a presentation to the Belgian Hydrogen Council.

Engaging in economic activities in Western Sahara without the explicit consent of the people of the territory contravenes international law principles, in particular the right to self-determination and the right to sovereignty over natural resources.

Over the last decade, the European Court of Justice has issued ten rulings pertaining to Western Sahara, annulling the application of EU-Morocco bilateral agreements in the territory over lack of consent from the Saharawi people. 

Western Sahara Resource Watch (WSRW) wrote to Sahamco on 16 December 2024 seeking clarification on how they assess the legality of their operations in occupied Western Sahara through land allocation and permits from the Moroccan government. WSRW also inquired how the planned exports to the EU align with EU Court rulings on Western Sahara which all emphasize the Saharawi people’s right to self-determination and Morocco’s lack of sovereignty or administering mandate over the territory.

Sahamco has not provided a response to these inquiries. 

Nor did the two development partners the company lists on its website, respond to questions from WSRW regarding their relationship to the Sahamco project:

• NetZeroWorx, a firm located in Lennik, Belgium, which – according to Sahamco’s website, is “mandated by Sahamco for its projects in the Atlantic Coastal Sahara region”. NetZeroWorx describes itself as supporting developers of utility-scale production and export facilities for renewable hydrogen and derivates. The CEO of Dahamco, Tom Hanson, is a co-owner of NetZeroWorx. The CEO of NetzeroWorx, Chris Prengels, also holds a position in Sahamco. WSRW wrote to NetZeroWorks on 16 December 2024. The firm did not respond.
• Global chemical company INEOS and its subsidiary Ineos Electrochemical Solutions, whichmanufactures electrolysers for clean hydrogen applications. WSRW wrote to INEOS on 16 December 2024. INEOS did not respond.

Specialised media also mentions other companies as partners in the Sahamco projects, including TAQA Morocco (the Moroccan subsidiary of the UAE group TAQA), AP Moller Capital (Denmark), Ornx Boujdour, and OCP Group, Morocco’s state-owned phosphate producer. 

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