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UAE, Morocco to invest USD 25 billion in ‘Green Hydrogen Project’

Government approval for land and the local authorities' authorisation had been finalised well in advance of Morocco's formalised green hydrogen strategy announced last November

A major UAE-Morocco private partnership will shape the future of the renewable energy sector with a USD 25 billion green hydrogen and ammonia project based in Dakhla, Morocco. Dahamco is the lead developer in the project to position Morocco as a global leader in sustainable energy production.

Government approval for land and the local authorities’ authorisation had been finalised well in advance of Morocco’s formalised green hydrogen strategy announced last November. The venture will be staged out of Dakhla, an Atlantic port in the disputed Western Sahara territory, and will be critical in Morocco’s renewables strategy.

Tom Hanson, the President of Dahamco, said the initial phase of the project would be worth around 40 billion Moroccan dirhams (USD 4.04 billion) and yield close to one million tonnes annually.

According to Hanson, the design of the project, co-investors, and production outlets have already been finalised, meaning everything is ready for implementation. Initial approvals from Morocco’s Regional Investment Centre, CRI, were issued in July 2022.

The phased implementation strategy adopted by Dahamco will reduce early-mover risks and ensure the competitiveness of costs. The first phase, projected to become operational in 2031, will have one million tonnes per year; phases will then be added every four to five years. This allows for scalability and consideration of market demands and technological advancements.

The project also contributes to the broader ambition of Morocco, according to the Economy and Finance Ministry of the country. It announced over $60 billion worth of energy projects by the end of 2023; over 90% were destined for green hydrogen and ammonia.

Among the well-known investors in such ambitious energy transition subjects are Taqa Morocco, Denmark’s AP Moller Capital, Dahamco, Ornx Boujdour, and OCP Group – the world’s leading phosphate producer.

This will be a very key project by Dahamco to help in the increasing demand for green hydrogen and ammonia worldwide, into the raw materials needed at the heart of decarbonising modes of transport and agriculture.

With Morocco endowed with rich renewable energy resources and location, the project is likely to go a long way in ensuring global sustainability goals. The Dahamco project represents another step in the commitment by Morocco and the UAE to leading the global transition toward greener, more sustainable energy solutions.

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