The Head of Government, Aziz Akhannouch issued, Monday, March 11, 2024, in Rabat, the circular implementing the “Morocco Offer” for the development of the green hydrogen sector, which constitutes an operational and incentive offer, covering the entire value chain of the green hydrogen sector.
This offer is adapted to the needs of investors in order to position the Kingdom as a competitive player in this emerging sector with high potential.
The Circular from the Head of Government specifies the operational steps for the implementation of the “Morocco Offer”, the means implemented by the State to ensure the success of this operation, as well as the roles of the various stakeholders. This offer is based on the implementation of a holistic, pragmatic and transparent approach giving all the necessary visibility to investors. It includes 6 parts:
– The scope of the Morocco Offer;
– The land mobilized for the implementation of the Morocco Offer;
– The infrastructure necessary for the development of the green hydrogen sector;
– The incentive measures of the Morocco Offer;
– The process of selecting investors and entering into contracts with the State;
– Governance of the green hydrogen sector.
In this transition, green hydrogen is expected to constitute a crucial energy vector and one of the main catalysts for the energy transition and sustainable growth in the Kingdom, under the enlightened leadership of King Mohammed VI. This emerging sector could constitute a turning point for the Moroccan economy, in the face of the economic, social, environmental and technological challenges it underlies.
In this context, the “Morocco Offer” applies to integrated upstream projects, from the generation of electricity from renewable energies and electrolysis, to downstream with the transformation of green hydrogen into ammonia, methanol, synthetic fuels, etc., as well as related logistics.
“The Morocco Offer” is aimed at investors or consortiums wishing to produce green hydrogen and its derivatives, targeting the domestic market, export or both at the same time. The strong interest already expressed by nearly a hundred investors, national and international, in producing green hydrogen in Morocco, confirms the significant potential of our country in this area.
As land constitutes a key issue for the development of the green hydrogen sector, the State has identified significant public land, of the order of one million hectares. During a first phase, 300,000 hectares will be made available to investors to be divided into lots of 10,000 to 30,000 hectares, depending on the size of the planned projects; the State ensuring within a contractual framework to preserve public land and guarantee its proper use.
“The Morocco Offer” is also structured around a competitive infrastructure to be planned, shared, developed and maintained, in accordance with the best international standards and according to the needs and developments of the green hydrogen industry; in addition to the implementation of incentive measures and support for project leaders.
It should be noted that in order to ensure the conditions for the successful implementation of the “Morocco Offer”, the framework investment agreements between the State and the investor provide for meeting clauses to regularly evaluate the progress of the investment program, within the framework of a State-investor relationship marked by transparency and strict compliance with confidentiality rules.
