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Dahamco’s Dakhla green ammonia project has most of its ducks in a row: Emirati-Moroccon private venture Dahamco is developing a MAD 254 bn (c. USD 25.46 bn) hydrogen and ammonia project in Dakhla, Morocco, having finalized designs and mobilized investors for financing, Dahamco President Tom Hanson told Le Matin.
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Waiting for sign off: The renewables venture has already received approval from the Moroccan government for the project and secured land use rights in 2022, he said. If agreements are finalized by 1Q 2025, the first phase could be operational by 2031, he added.
About the project: Phase 1 of the plant will cost MAD 40 bn (c. USD 4.01 bn), with a planned annual production of almost 1 mn ton of green ammonia per year pegged for exports to Amsterdam, Rotterdam, and Antwerp for maritime transport and industry use, Hanson said. The plant will continue to be developed in phases to avoid the risks of “too early” adoption, where production for local industry may begin. The plant is also designed to harness the region’s rich wind and solar energy.
Where’s the money coming from? Dhamaco plans on raising the project’s first phase funds through equity and debt mix. However, it anticipates difficulties in securing enough interest unless some obstacles related to the sector in Morocco are addressed, Hanson told Le Matin.
The obstacles? The government needs to streamline permits and ensure a comprehensive, predictable regulatory framework exists, and investments in hydrogen and ammonia transportation and storage infrastructure must flow in faster to accommodate the targeted production expansion, he said.
Morocco has big hydrogen plans: Morocco’s cabinet greenlit the “Morocco Offer” initiative — a six-stage framework geared towards attracting green hydrogen investments in the kingdom — in March. The framework covers a range of projects in the green energy sector, including renewables and green hydrogen, ammonia, and fuels such as green methanol and synthetic fuels. Under its ambitious plans, Morocco is set to become one of the world’s leading clean hydrogen producers by 2050 and could account for up to 4% of the global market by 2030. The country is also looking to partner with Germany on renewables, including green hydrogen.
