UAE-based developer Sahamco Holdings plans to take final investment decision (FID) on the first phase of a one million tonne per annum (mtpa) green ammonia plant in Morocco in 2027.
The Emirati firm reportedly intends to invest $25bn in the Dahkla project which has completed pre-front-end engineering design for the phase 1 mtpa stage and aims for operational launch by 2031.
According to its website, the project could scale up to an output of as much as 5 mtpa on a yet undisclosed timeline.
It would add to an emerging pipeline of green ammonia projects in Northwest Africa which aim to leverage the region’s solar and wind resources alongside access to global shipping routes to become major green molecule suppliers.
Located in Morocco’s Sahara region, Sahamco’s project is understood to be planned for land designated under Morocco’s national green hydrogen strategy.
This envisages the country developing around 6GW of dedicated renewable capacity by 2030 to support both a local hydrogen market of about 4TWh and an export market of roughly 10TWh annually.
The government has approved around $32.5bn worth of hydrogen and derivative projects and is offering up to 30,000 hectares of land per project to attract foreign investment.
While Africa’s green molecule activity has increased gradually, high project costs and uncertain demand have beset it, as with much of the world.
Earlier in the year, the Energy Industries Council argued the continent needs clearer policy signals and financial mechanisms to spread risks before committing to projects.
In September, the government of Moroccan neighbour Mauritania, alongside renewable energy developer CWP Global, agreed to advance a multi-million-tonne green hydrogen and ammonia project, targeting FID by 2030.
Sahamco is also eyeing an ammonia project in Mauritania with a 1 mtpa first phase targeted for 2031. It claims this could scale to 4 mtpa.
