- USTDA awards US$5.7 million to support engineering studies for a US$4.5 billion green ammonia project in Laayoune.
- Facility is expected to produce 560,000 tonnes of green ammonia annually using renewable hydrogen.
- Funding marks the first US government support for a private sector project in Western Sahara, a territory claimed by Morocco but recognised by the United Nations as non-self-governing.
The US Trade and Development Agency (USTDA) has awarded a US$5.7 million grant to international consortium ORNX to fund preliminary engineering studies for a proposed US$4.5 billion green ammonia project in Laayoune, Western Sahara.
The grant will finance pre Front End Engineering Design studies for the project, which is expected to produce up to 560,000 tonnes of green ammonia each year using hydrogen generated entirely from renewable energy. The development represents the first US government financing for a private sector investment in the disputed territory.
“Morocco has made ammonia production in the region a top national priority. When our allies are making generational infrastructure decisions, USTDA is proud to partner with U.S. industry to demonstrate the best of what America has to offer,” said Thomas R. Hardy, USTDA’s Deputy Director. “USTDA’s assistance will put U.S. technology and expertise at the center of what Morocco has identified as a cornerstone of the region’s economic future.”
The ORNX consortium brings together US developer Ortus Climate Mitigation with Spain’s Acciona and Germany’s Nordex. ORNX has selected a consortium of U.S. companies led by global engineering and technology firm Kellogg Brown & Root LLC, including GE Vernova, Electric Hydrogen (EH2) and Terabase to carry out the study, which will include an assessment of electrolyzer technology from EH2. The study will also evaluate power supply options, determine optimal sizing and configuration of the plant’s industrial components, and produce detailed financial projections and business models.
The project forms part of Morocco’s national green hydrogen programme, under which six large scale projects have been selected to support the country’s ambition of becoming a leading exporter of green hydrogen and its derivatives.
The announcement also reflects closer strategic ties between Washington and Rabat following the US recognition of Moroccan sovereignty over Western Sahara in 2020. During the signing ceremony, US Ambassador Duke Buchan III reaffirmed the US position, describing the project as taking place in the Moroccan Sahara.
Western Sahara remains one of Africa’s longest running territorial disputes. Morocco administers most of the territory, while the Algeria backed Polisario Front continues to seek an independent Sahrawi state. The United Nations continues to classify Western Sahara as a non-self-governing territory.
The planned facility is expected to play a strategic role in Morocco’s clean energy transition by supplying green ammonia for fertiliser production. Morocco is home to the world’s largest phosphate reserves and state owned OCP Group currently imports conventional ammonia produced from fossil fuels. Local production of green ammonia would support the manufacture of low carbon fertilisers for export markets.
The project also aligns with Morocco’s broader “Offre Maroc” strategy, which aims to establish the country as a major global producer of green hydrogen. The programme has allocated one million hectares of public land for renewable energy developments and targets capturing 4% of global green hydrogen demand by 2030, while producing 10 million tonnes annually by 2050.
As part of the strategy, Morocco plans to increase renewable energy to 52% of its electricity mix by 2030 through major investments in solar, wind and hydrogen infrastructure. Southern regions, including Laayoune Sakia El Hamra, are expected to become key production hubs, supported by dedicated port infrastructure and future electricity interconnections with Europe.
Author: Bryan Groenendaal
