Morocco Attracts Two Swiss Green Hydrogen Projects with Potential Investment of $3.6 Billion

Interest from international investors in Morocco’s potential for renewable energy and green hydrogen continues to grow. Two new projects led by the Swiss company H2 Global Energy are set to add to the initiatives anticipated in the Kingdom, with a potential investment envelope estimated at $3.6 billion.

The two projects involve the establishment of two facilities dedicated to producing derivatives of renewable hydrogen, one in Beni Mellal and the other in Tangier. At this stage, however, both initiatives remain in the preliminary studies and development phase and do not yet represent definitive investment commitments.

This presence in the portfolio of H2 Global Energy illustrates the growing interest in Morocco as a potential production hub for green hydrogen and its derivatives. The Kingdom benefits from a significant solar and wind potential as well as its geographical proximity to European markets.

A renewable ammonia unit in Beni Mellal

In Beni Mellal, H2 Global Energy envisions the construction of an industrial unit aimed at producing renewable ammonia, based on a model independent from the national electricity grid.

The project is expected to rely on renewable electricity generation capabilities developed directly on-site, particularly from solar energy. Battery storage systems are also planned to ensure a more stable power supply for the facility.

The planned electrolytic capacity would range between 1.3 and 1.5 GW, while annual production could reach between 220,000 and 281,000 tons of renewable ammonia.

The investment required for this infrastructure is currently estimated at around $2.5 billion, with a targeted commissioning date set for 2029.

However, these figures remain preliminary, as the project is still undergoing initial engineering studies. Its realization will depend on the results of technical and economic assessments, as well as the final investment decision.

The choice of an independent model could provide the project with a power supply directly linked to renewable sources. However, it also entails additional needs for electricity production and storage, which come with more significant technical and financial requirements.

Tangier targeted for renewable hydrogen peroxide production

In the northern part of the Kingdom, H2 Global Energy is also considering the development of a facility in Tangier dedicated to producing renewable hydrogen peroxide.

The project aims for a production capacity of around 28,000 tons per year and is expected to be powered by renewable electricity sources with a total capacity of 700 MW.

This energy mix would consist of 60% wind energy and 40% solar energy, allowing the facility to harness two renewable sources of energy.

The investment amount is currently estimated at around $1.1 billion, with commissioning projected around 2028, subject to the completion of studies, obtaining necessary permits, and making a final investment decision.

A potential of $3.6 billion

Together, these two projects represent a potential investment envelope of approximately $3.6 billion.

However, this figure does not constitute a definitive financial commitment from the Swiss company. At this stage, it serves as a preliminary estimate of the investments that may be needed to realize both units.

The realization of these projects will notably depend on their economic viability, especially given that production, equipment, and financing costs remain high in the green hydrogen sector.

Production costs: a decisive challenge

According to estimates from the United Nations Industrial Development Organization (UNIDO), the production cost of a ton of renewable ammonia in Morocco could range between $743 and $787, depending particularly on the electrolyzer technology used.

The cost of electrolyzers, necessary investments in solar and wind infrastructure, electricity storage systems, and financing conditions are among the key factors that could influence the competitiveness of these projects.

Units destined for export will also have to contend with logistical costs, certification and traceability requirements to ensure the renewable origin of the energy, as well as increasing competition from countries seeking to position themselves in the global hydrogen and derivatives market.

Beni Mellal broadens the investment landscape

The choice of Beni Mellal to host the renewable ammonia project is particularly interesting. A significant portion of Moroccan projects related to green hydrogen has traditionally focused in areas that combine solar and wind potential, industrial infrastructure, and access to ports.

The development of a project in an inland region could thus help expand the geography of investments related to green hydrogen and foster the emergence of new industrial activities outside of the main coastal hubs.

The project may also provide opportunities for integration with local and national industrial activities, especially regarding the ammonia demand generated by fertilizer-related industries.

Tangier, an asset for access to European markets

On the other hand, Tangier has specific advantages due to its proximity to European markets and its industrial and logistical infrastructures.

This location could ultimately facilitate the transportation of renewable hydrogen derivatives to international markets, particularly European ones.

The combination of the two projects—one focused on renewable ammonia in Beni Mellal and the other on renewable hydrogen peroxide in Tangier—reflects a desire to diversify both the products and industrial locations.

Morocco aims to strengthen its position in green hydrogen

These initiatives come as Morocco seeks to enhance its position among countries likely to benefit from the expected growth of the green hydrogen and its derivatives market.

The Kingdom possesses several advantages to attract investors: significant potential in solar and wind energies, developed industrial and port infrastructure, and proximity to Europe.

For H2 Global Energy, the concurrent development of projects in Beni Mellal and Tangier would allow for exploring different models of production and valorization of renewable hydrogen.

However, the transition from the study phase to actual realization will still depend on the outcomes of technical and economic evaluations, the projects’ ability to achieve competitive costs, securing necessary financing, and identifying commercial outlets for production.

If these conditions are met, these two projects could help strengthen Morocco’s green hydrogen ecosystem, combining production for the domestic market with the development of industrial products potentially integrated into export chains to Europe and international markets.