A joint venture between Morocco and the United Arab Emirates, led by renewable energy company Dahamco, is set to invest around USD 25 billion into a major green hydrogen and ammonia production project in Dakhla, southern Morocco.
This ambitious initiative, which has already been approved by the Moroccan government and secured all necessary local permits, aims to play a significant role in Morocco’s strategy to become a leader in renewable energy. The first phase is projected to cost MAD 40 billion (approximately USD 4 billion) and produce one million tons annually by 2031.
According to Dahamco’s President, Tom Hanson, the company secured the necessary land rights and local authorizations well before the Moroccan government’s announcement its green hydrogen development plan in November 2022.
The company obtained approval from the regional investment center (CRI) in July 2022, and the majority of the land required for the project has already been registered. Hanson noted that the project’s design is complete, investors are on board, and the project’s commercial prospects are well defined. The company is now fully prepared to move forward.
Following the initial phase, the next steps are slated to begin every four to five years after 2031, with the aim to expand the project’s capacity further over time.
This project forms part of a broader national energy strategy, which includes Morocco’s ambitious goals for green hydrogen and ammonia production. In late 2023, the Moroccan Minister of Economy and Finance Nadia Fettah Alaoui revealed plans to invest nearly USD 60 billion in the energy sector, with over 90% of the funds earmarked for hydrogen and ammonia projects.
Among the major investors in the project are sector giant Taqa Morocco, AP Moller Capital from Denmark, Ornx Boujdour, and OCP Group, a key player in Morocco’s phosphate industry.
The Moroccan government’s backing of the project, with its broader energy investment plans, demonstrates its commitment to strengthening the country’s renewable energy infrastructure and reducing dependence on fossil fuels.