A groundbreaking energy project is taking shape in Morocco, poised to set new benchmarks in renewable energy. Spearheaded by the joint venture Dahamco, the initiative focuses on producing green hydrogen and ammonia, with an eye-popping investment of $25 billion. Situated in Dakhla’s Atlantic port, this strategic collaboration between Morocco and the United Arab Emirates (UAE) aims to position the North African nation as a key player in the global energy transition.
Dahamco: A visionary endeavor
Tom Hanson, Dahamco’s president, outlined the first phase of the project, worth 40 billion Moroccan dirhams (approximately $4.04 billion). This initial step is expected to yield one million tons of green hydrogen annually, paving the way for even more ambitious milestones.
Strategic foresight has been the cornerstone of Dahamco’s success. Hanson emphasized that the necessary land rights and local permits were secured long before Morocco’s official push for green hydrogen development in November 2022. Crucially, regional investment authorities approved the required permits as early as July 2022, ensuring a smooth start.
“We’ve completed the project design, engaged co-investors, and defined clear market opportunities. We’ve been ready to move forward for quite some time,” Hanson affirmed.
Dahamco’s approach reflects a deep understanding of the challenges inherent in adopting cutting-edge energy technologies. The project will unfold over several phases, with the first set to be operational by 2031. Subsequent phases will roll out every four to five years. This cautious, phased strategy is designed to optimize costs and minimize risks, ensuring long-term sustainability and profitability.
A cornerstone of Morocco’s energy strategy
This ambitious initiative is a centerpiece of Morocco’s national energy strategy. By the end of 2023, Morocco’s Minister of Economy and Finance unveiled plans for $60 billion in energy sector investments, with over 90% earmarked for green hydrogen and ammonia. Heavyweights like Taqa Morocco, Denmark’s AP Moller Capital, Ornx Boujdour, the OCP Group, and Dahamco are at the forefront of this renewable energy push.
Morocco’s strategic location and abundant renewable energy resources make it a natural leader in green hydrogen. The choice of Dakhla underscores its growing importance in the country’s sustainability agenda, as well as the kingdom’s commitment to balancing economic development with environmental stewardship.
While precise timelines for later stages remain under discussion, the sheer scale of the Dahamco initiative underscores Morocco and the UAE’s shared vision. This partnership is set to propel Morocco to the forefront of the global renewable energy landscape. As these bold ambitions materialize, the kingdom is solidifying its role as a hub for green energy and sustainable development.
