A UAE-Moroccan private venture led by Dahamco plans to invest $25 billion in a green hydrogen and ammonia project in Morocco. The project will be located in Dakhla, a city in the disputed Western Sahara region, with approvals already obtained from the Moroccan government.
According to Dahamco President Tom Hanson, “phase one of the project is expected to cost approximately 40 billion Moroccan dirhams ($4.04 billion) and produce about one million tonnes of green hydrogen and ammonia per year.” Hanson confirmed in an interview with Le Matin that, “the necessary land rights and local authorizations were secured before Morocco introduced its national strategy for green hydrogen development in November 2022.”
Approvals for the project were issued by the Regional Investment Centre (CRI) in July 2022. Hanson added that.” land registration for the majority of the project area has been completed, and the project design, co-investors, and production targets are already finalized.”
The project will be developed in several phases to manage costs and reduce risks associated with early adoption of the technology. If the timeline proceeds as planned, the first phase will become operational in 2031 with an annual production capacity of one million tonnes. Subsequent phases will roll out at intervals of four to five years.
Morocco is positioning itself as a hub for green energy projects, particularly in green hydrogen and ammonia. A report by Morocco’s Ministry of Economy and Finance in late 2023 revealed plans for energy projects worth $60 billion, with over 90% of them focused on green hydrogen and ammonia production. Major investors in these initiatives include Dahamco, Taqa Morocco, AP Moller Capital of Denmark, Ornx Boujdour of Morocco, and the OCP Group, a leading Moroccan phosphate producer.
