Morocco advances green hydrogen strategy with measured approach to technology, finance

Morocco reached a new milestone in its hydrogen strategy with March 2025 announcement of six green hydrogen projects in southern regions totaling 319 billion dirhams. Guelmim, Laayoune, and Dakhla emerge as new centres for energy transition now playing out at territorial scale.

Five selected consortiums, including Emirati Taqa, Spanish Cepsa, and German Nordex partnered with American Ortus, rank among leading energy transition actors. Their presence confirms the kingdom’s attractiveness driven by Morocco Offer investment framework, new Investment Charter, and structured land access with plots reaching 30,000 hectares per project.

Production cost competitiveness remains crucial. Rather than earlier optimistic projections of one dollar per kilogram, realistic project costs now range between 2.8 and 3.8 dollars per kilogram, accounting for electricity prices, electrolyzers, storage, and logistics. Southern regions offer valuable advantages where high-performing daytime solar power alternates with consistent nighttime wind, enabling near-continuous electrolyzer operation.

The chosen strategy adopts a deliberately progressive approach. Before scaling to multi-gigawatt units, developers will conduct 12 to 18-month wind and solar measurement campaigns, followed by 0.4 gigawatt pilot projects. This prudent methodology emphasizes learning and risk management over spectacular mega-project announcements.

Technological sovereignty represents a central concern. The Royal Institute for Strategic Studies estimates necessary investments could reach 2,500 billion dirhams by 2040, stressing the importance of anchoring this new sector in national skill development through applied research, dedicated university programs, and strengthened collaboration between laboratories, industries, and public institutions.

Financing the announced 319 billion dirhams requires complex structuring. Export-oriented projects will draw funding primarily from developers, their banks, and major international investors. The state maintains crucial roles providing supporting infrastructure including ports, networks, and certification systems while designing incentives and securing contractual frameworks.
Morocco positions itself as a natural European partner capable of providing competitive green molecules from quality renewable energy mix.