Chbika: Morocco’s Green Hydrogen –  Phase 1. Opportunities for Nordic Investors

Morocco is rapidly emerging as a pivotal player in the global green hydrogen market, presenting compelling opportunities for Nordic investors and companies looking to expand their presence in sustainable energy development. The country’s latest strategic moves and partnerships demonstrate its commitment to becoming a major force in renewable energy production and green hydrogen development.

Strategic Partnership and Landmark Project

In a significant development this October, under the patronage of His Majesty King Mohammed VI and the President of France, Morocco signed a groundbreaking agreement with TE H2, a joint venture between Total Energies (80%) and EREN Group (20%). The centerpiece of this partnership is the Chbika project, located near Guelmim in the Oued Noun region, marking Morocco’s first major step toward establishing itself as a global green hydrogen producer.

The Chbika project encompasses the construction of 1GW combined solar and wind power stations, designed to power green hydrogen production using desalinated water from the Atlantic Ocean. With a projected output of 200,000 tons per year of green ammonia primarily targeted for European markets, this initiative represents just the beginning of Morocco’s ambitious plans in the sector.

Government Commitment and Investment Framework

The Moroccan government has demonstrated its serious commitment to green hydrogen development by allocating one million acres of strategically selected land, with 300,000 acres designated for the first phase. This strategic land offering features existing wind and solar power infrastructure, significantly reducing initial investment barriers for potential developers.

The Moroccan Agency for Sustainable Energies (MASEN) has established a comprehensive framework to attract and support investors, including:

Investment Incentives:

• Custom-duties exemption on project-related imports
• VAT exemptions
• Potential government grants covering up to 30% of total project value through special investment incentive programs
• Six-month (renewable) preliminary agreements with land allocation for pre-FEED studies

Selection Criteria:

• Financial creditworthiness
• Proven track record and references
• Projected impact on Morocco’s economy and society

Market Opportunity

With the global green hydrogen market projected to reach €134 billion by 2032, Morocco’s strategic positioning offers Nordic companies a unique opportunity to establish an early presence in this rapidly growing sector. The country’s proximity to European markets, established renewable energy infrastructure, and supportive government framework make it an attractive destination for sustainable energy investments.

Advantages for Nordic Investors

Nordic companies, with their advanced expertise in renewable energy technologies and sustainable development, are particularly well-positioned to capitalize on these opportunities. Morocco’s commitment to renewable energy aligns well with Nordic countries’ sustainable development goals and technical capabilities in:

• Wind power technology and implementation
• Solar energy systems
• Water desalination
• Green hydrogen production and storage
• Sustainable infrastructure development

Looking Forward

The Chbika project represents just the first phase of Morocco’s comprehensive green hydrogen strategy. As the country continues to develop its renewable energy capacity and green hydrogen infrastructure, early investors have the opportunity to establish strong positions in what promises to be a key market for sustainable energy production.

“For Nordic companies interested in exploring these opportunities, the time is right to engage with Morocco’s growing green hydrogen sector. With clear government support, established frameworks for investment, and significant market potential, Morocco offers a promising platform for sustainable energy development in the African continent.”

For more information about investment opportunities and local partnership possibilities in Morocco’s green hydrogen sector, please be in contact.