At the Power-to-X World Summit in Marrakech, Morocco showcased the benefits of its green hydrogen sector through its ‘Morocco’s Offer’ initiative, aiming to attract investment and boost this emerging energy industry in North Africa.
’Morocco’s Offer’ on green hydrogen, made public on 11 March 2024 through a circular issued by the head of government, Aziz Akhannouch, represents an important opportunity for investors and authorities interested in the development of this energy sector.
This initiative is considered a practical offer and an incentive proposal covering the entire value chain, in accordance with the needs of investors, with the aim of establishing the Moroccan kingdom as a competitive player in this sector of the future.
Green or renewable hydrogen is hydrogen generated from renewable electricity, using water as a raw material, through a process of electrolysis. This process is powered entirely by renewable energy, so it does not generate any pollutant emissions into the atmosphere and is the cleanest and most sustainable hydrogen available. It is an important source of renewable energy, which is why Morocco is committed to it. On this point, the Moroccan kingdom wants to promote this industry in order to continue advancing in the decarbonisation of its economy and in the promotion of the clean energy sector for the future.
According to the latest economic report by the Organisation for Economic Co-operation and Development (OECD), Morocco aims to reduce its carbon emissions by 45.5% by 2030 and achieve climate neutrality by 2050. The basis for achieving this is a commitment to renewable energies, including solar, wind, marine and green hydrogen, as is being demonstrated.
The ‘Morocco’s Offer’ is attracting a great deal of interest from domestic and foreign investors, as was evident at the Power-to-X World Summit, which was attended by some 1,600 experts, policymakers, industry leaders, and scientific researchers.
This edition, co-organised by the Solar Energy and New Energies Research Institute (Iresen) in collaboration with the Green H2 Cluster, the Mohammed VI Polytechnic University (UM6P), and the Moroccan Agency for Sustainable Energy (Masen), focused on the challenges and opportunities related to green hydrogen, a sector for which Morocco has an important plan, aimed at positioning the North African country as a global hub and as a highly competitive producer of green hydrogen.
’Morocco’s Offer’ is attractive for its clarity, practicality, and the incentives that exist on the part of the Moroccan state to invest.
Here it is worth highlighting the initiative of the Moroccan state, following the directives of King Mohammed VI, to bet on investment through the recent New Investment Charter program, which accumulates a significant sum of money provided by the Moroccan state to attract national and foreign investors to implement business and invest in all sectors of the Moroccan business and productive fabric.
The Moroccan Kingdom offers all kinds of facilities within the New Investment Charter program, including the digitization of all types of procedures necessary to invest in Morocco, attractive tax incentives to reduce taxes, or compensation premiums that can reach up to 30% of the total investment for companies and investors who set up or carry out an economic activity in the North African country.
The New Moroccan Investment Charter thus delimits its planning until 2026, based on advantages such as the improvement of the legal business framework, the strengthening of coordination and supervision of the business environment, and the optimisation, digitalisation, and decentralisation of administrative procedures.
Morocco seeks public-private partnerships to encourage investment in the country and develop all types of sectors within the process of modernisation and national development promoted by King Mohammed VI since his accession to the throne in 1999, and the energy sector and green hydrogen in particular are following in this same wake, as was evident at the World Power-to-X Summit. ‘This summit was an opportunity for us to present Morocco’s advantages and capabilities in terms of green hydrogen. Morocco’s Offer offers a wealth of opportunities for investors. The time has come to work together with our public and private sector partners in this area,’ said Leila Benali, Morocco’s Minister of Energy Transition and Sustainable Development.
Minister Leila Benali also highlighted the need to find innovative financing solutions to ensure the sustainability and competitiveness of projects. One of the main challenges to be addressed is to increase grid financing in order to provide clean energy at lower cost, as reported by La Vie Eco.
Chakib Alj, president of the General Confederation of Moroccan Enterprises (CGEM), emphasised at the event that the Moroccan private sector is fully aligned with this momentum, stating, “We are committed to participating in this ecosystem.”
