Riyadh-based utility and hydrogen developer Acwa Power and a consortium led by UAE-based Abu Dhabi National Energy Company (Taqa) are among five groups that have been selected to develop green hydrogen-based industrial plants in Morocco.

The projects are estimated to require investments of up to MD319bn ($32.9bn).

"These initiatives aim to position Morocco as a global leader in sustainable energy, focusing on the production of green ammonia, industrial fuels and steel," media reports citing an official statement said.

The groups that have been selected include the ORNX Consortium, comprising US-based Ortus, Spain's Acciona and Germany's Nordex, which aims to build a green ammonia plant; an alliance between Taqa and Spain's Cepsa Alliance
that aims to develop a green ammonia and industrial fuels production facility; and the local Nareva, which proposed the development of a plant that will produce green ammonia, industrial fuels and green steel.

Acwa Power proposed the development of a green ammonia plant, while a Chinese consortium comprising United Energy Group and China Three Gorges plans to produce green ammonia.

These projects align with Morocco’s broader strategy to decarbonise its economy and capitalise on its renewable energy potential.

The green hydrogen-based industrial facilities will be built in Morocco's desert regions, which provide optimal conditions for generating solar and wind energy to power the electrolysis process producing green hydrogen, which is then converted into derivative fuels or used for steel production and other heavy industries.

It will be the third green hydrogen project for Acwa Power in the Middle East and North Africa region, following the under-construction $8.4bn Neom green hydrogen project in Saudi Arabia and another potential multibillion-dollar project planned in Tunisia.

Before this announcement, there were estimated to be seven large-scale green hydrogen projects in the North African state.

These include CWP Global's Amun project; another project planned by China Energy International Construction Group, Saudi Arabia's Ajlan & Brothers Company and the local firm Gaia Energy Company; and the Hevo Ammonia Morocco project planned by Fusion Fuel, Greece-based Consolidated Contractors Company and Vitol.

Moroccan phosphate specialist OCP is in the advanced stages of studying a project to produce 1 million tonnes of green ammonia annually by 2027.

Other planned projects are Verde Hydrogen; White Dunes Dakhla, initiated by France-based HDF Energy and Falcon Capital Dakhla; and the Chibika green hydrogen and ammonia scheme, planned by TotalEnergies H2, a joint venture of France's Total Energies and Eren, Copenhagen Infrastructure Partners through its energy transition fund, and AP Moller Capital.