Rabat – Morocco is partnering with Chinese engineering firm Energy China International Construction Group for the development of a major green hydrogen project in the North African country.
According to a report from the energy-focused website Upstream, the Chinese company signed a memorandum of understanding (MoU) with the Saudi industrial conglomerate Ajlan Bros and the green energy company Gaia Energy, to build the green hydrogen project.
The project consists of a green ammonia plant with a potential annual output of 1.4 million tonnes, the statement noted, detailing that the ammonia will be produced from about 320,000 tonnes of green hydrogen and with a 2-gigawatt photovoltaic solar plant as well as a 4 GW wind power project.
Ammonia is an essential component in the manufacturing of fertilizers. Given Morocco’s global position as a fertilizers manufacturer, producing ammonia locally would reduce the country’s dependency on ammonia imports, making the industry less exposed to international market fluctuations.
Sourcing ammonia from green hydrogen is a major step for Morocco to decarbonize one of its biggest industries. Under the MoU, the three project owners will continue to operate the facility after the completion of the construction phase, the report specifies.
In addition to its potential to decarbonize Morocco’s economy, the project is in line with the country’s endeavor to emerge as a green energy powerhouse in Africa and produce green hydrogen for export, mainly to Europe.
Morocco can be an energy exporter
Converging reports indicate that Europe is eyeing Africa as a future “source of cheap and sustainable energy.” Studies are increasingly pointing to the merits of sourcing green hydrogen from Morocco, given the country’s proximity to Europe and its potential in producing cost-efficient green fuel.
Green hydrogen is currently considered the green fuel that could replace oil. As the world transitions to a greener economy, demand for green hydrogen is expected to grow at an exponential rate.
A January report from the European Conservatives indicated that Europe is already planning massive investments into green hydrogen and solar panels that involve mostly Morocco, Egypt, and southern Africa.
According to the European Conservatives, the European Investment Bank estimates the value of Africa’s green hydrogen production capacity at a 1 trillion-euro investment.
The continent is expected to reach an annual green hydrogen production capacity of 50 million tonnes by 2035 at a highly competitive price of or below $2 per kilogram.
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