The Moroccan government plans to allocate 10,000 square kilometres to green hydrogen projects as it continues its steps towards energy transition, according to a statement from the cabinet on March 11. 

The initiative will start with 3,000 km2 in the first phase and will cover integrated projects to generate power from renewable energies and electrolysis, to the conversion of green hydrogen into ammonia, methanol, and synthetic fuel, according to the statement.  

The investments will cover the local market and part of the output will be directed to exports, the government said, noting that there will be incentives given to interested companies to implement the projects. 

Morocco has been attracting large projects for energy production using renewable sources given its potential for cost-effective green fuel production.

In January, the country’s state-owned power and water utility ONEE signed a partnership agreement with renewable energy developers Nareva and GE Vernova to utilize green hydron technologies in the Laâyoune power plant in Western Sahara. In December 2023, the Swedish renewable energy producer S2H2+Bm said it would establish a green hydrogen production plant in Morocco by 2025 to produce around 500,000 tonnes per year (tpy) of green hydrogen in five years. 

Seeking to capitalize on abundant wind and sun rays, the country’s energy plan aims to more than double its renewable energy production to 12 GW – representing 52% of total power capacity – by 2030, from a current level of 5 GW, or 40% of capacity. Currently, Morocco imports 90% of its energy needs and generates around 70% of its power from coal.