German PTX Fund Offers Grants for Moroccan Green Hydrogen Projects

Rabat – German fund Power-to-X Development Fund announced a call for proposals to benefit from a substantial €270 million grant. The grant aims to support developers to boost hydrogen production in a selected list of countries including Morocco.

Other countries benefiting from the grant are South Africa, Brazil, Egypt, Georgia, India, and Kenya. Candidates stand to benefit from non-repayable grants, designed to enhance project profitability and facilitate additional financing opportunities, according to a press release from the company quoted in media reports.

The initiative, launched in 2023, is backed by the German Ministry of Economic Cooperation and Development, with management entrusted to KGAL Investment Management, acting on behalf of the German development bank KfW.

Interested parties must submit their proposals before the upcoming deadline on March 1, at noon. Under the program, industrial projects meeting specific criteria could secure grants of up to €30 million euros.

Thomas Engelmann, head of PtX, emphasized the fund’s focus on projects exceeding 100 million euros, crucial for industries reliant on hydrogen, such as ammonia, methanol, synthetic fuels, and related chemical processes driven by renewable electricity.

The funding scope covers various stages of the PtX value chain, from renewable energy production to distribution, including electrolysis, compression, storage, and hydrogen transport.

Engelmann noted that funds would be allocated across eight to ten projects over multiple submission rounds, with investments slated from 2024 to 2027.

On his part, Janne Rajpar, director of the KfW office in Rabat, expressed confidence in Morocco’s readiness to leverage these grants, citing the maturity of local projects. Florian Ziegler, also from KfW, highlighted Germany’s commitment not only to advancing green hydrogen industries in Morocco but also to facilitating skill transfers and job creation.

Export opportunities to Europe are encouraged but not obligatory for funding eligibility, Ziegler clarified.

In recent years, Morocco has made significant strides to accommodate investments in green hydrogen.

Converging reports highlight the advantages of sourcing green hydrogen from Morocco, given its potential for cost-effective green fuel production.

Green hydrogen is currently regarded as an eco-friendly alternative to oil. As the global shift towards more sustainable practices accelerates, there is a projected exponential increase in the demand for green hydrogen.

A 2023 report from the European Conservatives revealed that Europe is already planning substantial investments in green hydrogen and solar panel projects, primarily involving Morocco, Egypt, and southern Africa.

According to the European Conservatives, the European Investment Bank has estimated that Africa’s capacity for green hydrogen production could represent a 1 trillion-euro investment opportunity.

It is anticipated that the continent will achieve an annual green hydrogen production capacity of 50 million tonnes by 2035, offering a highly competitive price of $2 per kilogram or less.