In recent years, the global focus on sustainable energy solutions has intensified, driven by concerns over climate change and the need to transition away from fossil fuels. One promising approach in this transition is the development of green hydrogen, a clean, versatile fuel produced through water electrolysis powered by renewable energy sources such as wind or solar. For countries like Morocco, endowed with abundant renewable resources, embracing the green hydrogen economy presents a unique opportunity for economic growth, energy security, and environmental sustainability.
Morocco’s ambitious renewable energy targets, outlined in its National Energy Strategy, underscore the country’s commitment to reducing greenhouse gas emissions and diversifying its energy mix. The nation aims to generate 52% of its electricity from renewable sources by 2030, with large investments in solar and wind power infrastructure underway. This shift towards renewables provides a solid basis for developing a green hydrogen economy, as excess renewable energy can be harnessed to produce hydrogen through electrolysis.
In addition, Morocco’s national hydrogen strategy, guided by the National Hydrogen Commission, aims for green hydrogen production to meet a demand of 30 TWh by 2030 and 307 TWh by 2050. It comprises three phases: until 2030, focusing on pilot projects; until 2040, cost reduction and local integration; until 2050, global expansion into various sectors, including heat and mobility. This strategy aligns with Morocco’s renewable energy model and geographic advantage for interconnection with Europe.
Challenges related to green hydrogen
Entering the hydrogen market presents multifaceted challenges, spanning financial risks such as credit risk and interest rate fluctuations, compounded by the absence of tailored insurance products, particularly in areas such as technology failure or supply chain disruptions. Regulatory uncertainties, evolving compliance requirements, and potential policy changes further complicate project planning and implementation. Economic challenges stem from its higher production costs of green hydrogen compared to fossil-based grey hydrogen and most projects rely heavily on incentives for economic viability. In addition, technical challenges include the need for substantial infrastructure development, difficulties in expanding pipeline networks and converting existing natural gas infrastructure as well as complexities in storage and distribution due to its low volumetric energy density, requiring large storage volumes or high-pressure tanks. Furthermore, new technology developments are also necessary to increase the efficiency and lower costs. Bridging skill gaps and fostering collaborations with academia are vital for innovation to drive research & development initiatives. Finally, environmental challenges, such as water scarcity and waste management, require sustainable practices.
Morocco’s strong position and efforts to unlock the green hydrogen economy
Renewable energy
Morocco is positioning itself as a frontrunner in the global push for green hydrogen leadership. Bolstered by a flourishing renewable energy sector showcased through massive investments and megaprojects such as the Noor Ouarzazate Solar Complex and the Tarfaya Wind Farm, Morocco is poised to establish a strong green hydrogen economy. With abundant solar and wind resources, the country boasts some of the world’s most favorable conditions for generating low-cost electricity essential for green hydrogen production.
Noor III solar park in Ouarzazate, Morocco Source: WELT (picture alliance / Xinhua News) – 2020
Industrialization acceleration
Morocco stands as a pinnacle of industrial progress in Africa, with remarkable strides in development over recent decades poised to boost local demand for green hydrogen and its derivatives within various industries. Furthermore, Morocco’s endeavors in green hydrogen are fortified by its robust fertilizer sector, notably spearheaded by companies like OCP (Office Chérifien des Phosphates). Boasting the world’s largest phosphate reserve and ranking as the second-largest producer globally, Morocco’s fertilizer industry presents a promising avenue for green ammonia production, enriching the nation’s economic portfolio and fortifying its standing in the burgeoning green hydrogen market.
Infrastructure development
Morocco has made a lot of efforts in the last decades modernizing its infrastructure. This was part of its strategy to attract investors and boost its economy. Its well-developed infrastructure including one of the top 20 largest ports globally, large road and rail network including the first high-speed train in Africa, positions it as an ideal export hub for green hydrogen products. In addition, Morocco is advancing its green hydrogen infrastructure with the introduction in March 2024 of the “Morocco Offer” an initiative aimed at fostering competitiveness in the sector. This comprehensive plan includes infrastructure development, incentives, and transparent governance structures.
Geographic advantage and partnerships
Morocco’s strategic location, particularly its proximity to Europe, makes it an ideal candidate for exporting green hydrogen to meet the continent’s ambitious demand. Strengthening this position, Morocco has forged strategic partnerships with European nations like Germany, focusing on joint initiatives for green hydrogen production and research and development.
Regulatory support and investment stimulation
Morocco is implementing various measures to stimulate investments in green hydrogen including promoting public-private partnerships and actively marketing investment opportunities. The country’s robust investment framework, including the Investment Charter, ensures investors’ rights and establishes an attractive incentive system. Regulatory support, such as the national hydrogen strategy and investment incentives, creates a favorable environment for green hydrogen investment. Political stability further enhances investor confidence and contributes to Morocco’s appeal as a key player in the global energy transition. Furthermore, the government’s initiative to allocate 1 million hectares for green hydrogen projects serves as a strategic move to attract investors and elevate Morocco’s position in the green hydrogen market.
Environmental and social impacts
Morocco’s efforts to lead in the green hydrogen economy extend to mitigating environmental and social impacts. Measures to counter water scarcity, such as building dams and implementing water-saving technologies, contribute to sustainable hydrogen production. Furthermore, investments in green hydrogen create job opportunities and stimulate economic growth, providing positive social impacts for communities.
Building knowhow and research initiatives
Morocco is actively fostering expertise in green hydrogen through initiatives aimed at promoting knowledge and skills development. Universities are playing a pivotal role in this endeavor by offering programs and conducting research on hydrogen and fuel cells. Additionally, research and development initiatives, such as those facilitated by Technopark and other institutions, contribute to advancing technological capabilities and innovation in the green hydrogen sector.
Ghali Bouzouba works in strategy consulting, advising international clients in the energy sector and energy-intensive industries with a focus on decarbonization and asset strategies. He draws upon extensive professional experience in renewable energy and hydrogen as well as deep technical and economic know-how to help companies transform generation portfolios, develop new products and business models as well as execute strategic investment decisions. He studied in Toulouse, France and holds a Master’s degree in Engineering. He is passionate about sustainability and economics.
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