Rabat – The US Trade and Development Agency (USTDA) has signed an agreement with Moroccan-based joint venture ORNX Laayoune 1 SASU (ORNX) to fund a technical study for a large-scale ammonia production plant in Morocco’s southern provinces.
The agreement was signed on Tuesday in Laayoune, and it aimed at supporting a pre-front end engineering and design (pre-FEED) study that will assess the feasibility of the project using US technology, according to a statement from USTDA.
USTDA Deputy Director Thomas R. Hardy said Morocco has made ammonia production in the region a national priority, adding that the agency’s support will help bring US technology and expertise to a project considered important for the region’s economic future.
The study will be carried out by a consortium of US companies led by global engineering and technology firm Kellogg Brown & Root (KBR), alongside GE Vernova, Electric Hydrogen (EH2), and Terabase.
It will assess different aspects of the future plant, including electrolyzer technology, power supply options, industrial design, and financial projections. Once completed, the facility is expected to produce up to 560,000 tons of ammonia per year.
Ammonia is a key industrial chemical widely used in fertilizer production, as well as in refrigeration, water treatment, and manufacturing. For Morocco, the project represents an opportunity to expand industrial development in the southern provinces and strengthen its role in global energy and industrial supply chains.
The Laayoune ammonia project is part of Morocco’s broader green hydrogen strategy, which aims to develop large-scale renewable energy projects in the southern provinces. The ORNX consortium, made up of US-based Ortus, Spain’s Acciona, and Germany’s Nordex, is expected to invest around $4.5 billion in the project, which will focus on producing green hydrogen and its derivatives, including ammonia, Asharq Business reported in February.
The project is expected to rely on a combination of wind and solar power, with plans including renewable energy facilities, electrolyzer units, battery storage systems, and a seawater desalination plant. The initiative is seen as a major investment opportunity for Laayoune and a step toward strengthening Morocco’s position in the global green energy market.
ORNX CEO Peter A. Gish welcomed the agreement, saying the funding would allow the company and its partners to advance technical and commercial studies as they move toward further investment decisions.
US Ambassador to Morocco Duke Buchan III said the grant highlights the importance of US investment in Morocco’s southern provinces.
“American companies continue to demonstrate unmatched leadership and technology in developing and producing the energy that powers the global economy, including in Morocco,” Buchan said, adding that projects like this create opportunities for US exports and jobs in both countries.
Read also: Trump Salutes King Mohammed VI After Morocco Honors Him With Major Expressway
The USTDA said the agreement reflects its role in supporting infrastructure projects in emerging markets by funding early technical studies and helping projects attract financing and investment.
The agreement comes amid growing economic and strategic ties between Morocco and the US. Relations between the two countries have strengthened in recent years, particularly after Washington recognized Morocco’s sovereignty over its southern provinces in the Sahara in 2020.
Earlier this week, US Ambassador to Morocco Duke Buchan welcomed Morocco’s decision to name the Tiznit-Dakhla Expressway after US President Donald Trump, describing the project as a symbol of the strong partnership between Rabat and Washington.
The 1,055-kilometer highway connects Morocco’s southern provinces with the rest of the country and is part of major development efforts in the region.
