Morocco to start $850m ammonia plant works
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Morocco to start $850m ammonia plant works

By MEED    16 Jul 2021 (Last Updated July 16th, 2021 09:22)

Morocco is set to start a hydrogen and ammonia plant project in 2022 with a budget of about MAD7.5bn ($850m).

Morocco to start $850m ammonia plant works
Ireland’s Fusion Fuel and Lebanon’s Consolidated Contractors Company will develop the project. Credit: MEED.

Morocco expects to start the development of the first phase of a green hydrogen and ammonia plant in 2022.

The Hevo Ammonia Morocco project has an estimated budget of MAD7.5bn ($850m). Upon completion in 2026, the facility will have the capacity to produce 31,000t of green hydrogen annually, to be converted into 131,000t of green ammonia.

The project will be developed by a team comprising Nasdaq-listed Irish electrolyser maker Fusion Fuel and Lebanon’s Consolidated Contractors Company (CCC).

It is the largest and most advanced project being planned by the Irish/Lebanese team in the Middle East and Arica region.

In May, the two firms announced a collaboration agreement to build pilot or demonstrator green hydrogen plants in Oman, Kuwait and Qatar, targeting potential clients in the refining and petrochemicals industries.

Fusion Fuel has a proprietary electrolyser solution, Hevo, which has been specifically designed to be ‘small, lightweight and possible to be mass-produced.’

Joao Wahnon, head of business development at Fusion Fuel, said that the Middle East represents a ‘big opportunity and a very promising region for us’ due to its high levels of solar exposure, strong appetite for green hydrogen projects and strategic geographic position between Europe and Asia.

The firm’s website describes business lines that include the sale of electrolyser technology to customers ‘interested in building their own green hydrogen capacity, the development of hydrogen plants to be owned and operated by Fusion Fuel … and the sale of green hydrogen as a commodity to end-users through long-term hydrogen purchase agreements.”

Rapidly expanding pipeline

Morocco is among the first countries in the Middle East and North Africa (Mena) region to have started exploring green hydrogen projects and partnerships.

The country formed a National Hydrogen Commission in 2019. The following year saw a cooperation agreement with Germany, with the first 100MW green hydrogen project arising from the pact expected to start operations by 2025.

The cooperation agreement also entails a knowledge transfer programme in partnership with the Rabat-based Institute for Research in Solar Energy & New Energy (Iresen).

A similar agreement was reached in February this year with Portugal.

In June, Morocco signed a strategic partnership with the Abu Dhabi-based International Renewable Energy Agency (Irena) that aims to ‘advance the green hydrogen economy.’

The Hevo Ammonia Morocco project is the latest scheme to be added to the Mena region’s rapidly expanding green hydrogen and derivatives pipeline, which MEED estimates will require a total investment of about $42bn to date.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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