The agreement greenlights a key phase of feasibility studies for the plant, which would see the Morocco subsidiary of Taqa supply renewable energy components, and Spain’s Moeve lead e-fuels production and marketing.

Planned for the Dakhla region, specific details of the plant, including its projected timeline, output capacity, and price tag, remain undisclosed.

It falls under Morocco’s national hydrogen framework, known as the Morocco Offer, which allocates up to 30,000 hectares per project and targets the mobilisation of up to one million hectares for green hydrogen development.

Morocco expects a demand of up to 30TWh by 2030 and 307TWh by 2050, requiring approximately 2GW of renewable energy to support production.

The country plans to utilise its geostrategic position and abundant renewable energy resources to become a prominent supplier for heavy-consumption markets like Europe.

This comes alongside Morocco’s freshly signed agreement with the international ORNX consortium for developing a $4.5bn (€3.8bn) green ammonia plant in Laayoune, projected for a 2GW renewable energy capacity and around 900MW of electrolysers.

Around $32.5bn worth of hydrogen and derivative projects have been approved by the Moroccan government. More broadly, the nation plans to increase the share of renewables in its power mix to 52% by 2030, with solar, wind, and hydropower supplying the bulk of its electricity.