In application of the Royal High Directives, the Head of Government issues the circular for the implementation of the "Morocco Offer" for the development of the green hydrogen sector
2024-03-11Table of Contents:
- Press Release regarding the circular for the implementation of the "Morocco Offer" for the development of the green hydrogen sector.
- Infographic: Investor's Journey
- Infographic: The 6 Fundamental Pillars of the "Morocco Offer"
- Infographic: The 6 Fundamental Pillars of the "Morocco Offer"
- "Morocco Offer": Statement by the Minister
- "Morocco Offer": Statement by the Director General of Investment and Business Climate
- Circular for the implementation of the "Morocco Offer" for the development of the green hydrogen sector
Rabat March 11th 2024,
- "The Morocco Offer" is based on a holistic, pragmatic, and transparent approach, providing investors with all the necessary visibility;
- Definition of the implementation process of the "Morocco Offer" and the means to be mobilized by the State to ensure the success of this operation and the roles of the various stakeholders;
- Establishment of an incentive framework and support for project holders to ensure the success of the implementation of the "Morocco Offer";
- Identification of a land base covering an area of 1 million hectares and provision of 300 thousand hectares to entrepreneurs in a first phase;
- A hundred national and foreign investors have already shown keen and effective interest in the "Morocco Offer".
In accordance with the Royal High Directives given during the working session chaired by His Majesty King Mohammed VI, may God assist Him, on November 22, 2022, and the High Instructions of His Majesty, contained in the sovereign's speech on the occasion of the 24th anniversary of the Throne Day on July 29, 2023, in which His Majesty the King, may God assist Him, instructed the government to undertake the rapid and qualitative implementation of the "Morocco Offer" in the field of green hydrogen "in order to capitalize on the advantages that our country possesses in this regard and to best meet the projects carried by global investors in this promising sector"; the Head of Government, Mr. Aziz Akhannouch, issued on Monday, March 11, 2024, in Rabat, the circular for the implementation of the "Morocco Offer" for the development of the green hydrogen sector, which constitutes an operational and incentive offer, covering the entire value chain of the green hydrogen sector. An offer tailored to the needs of investors in order to position the Kingdom as a competitive player in this emerging sector with high potential.
The far-sighted vision of His Majesty the King, may God assist Him, enables Morocco to occupy a privileged position at the continental and international levels in terms of renewable energy development, by leveraging the pioneering position of the Kingdom in renewable energies, its rich and diversified natural resources, its strategic geographical location, its world-class infrastructure, and its qualified human capital. This will enable Morocco to play a key role in the global energy transition and the resulting reconfiguration of flows.
The Circular of the Head of Government specifies the operational steps for the implementation of the "Morocco Offer," the means employed by the State to ensure the success of this operation, as well as the roles of the various stakeholders. This offer is based on the implementation of a holistic, pragmatic, and transparent approach, providing investors with all the necessary visibility. It comprises 6 parts:
- The scope of application of the Morocco Offer;
- The land allocated for the implementation of the Morocco Offer;
- The necessary infrastructure for the development of the green hydrogen sector;
- The incentive measures of the Morocco Offer;
- The process of selecting investors and contracting with the State;
- The governance of the green hydrogen sector.
In this transition, it is anticipated that green hydrogen will be a crucial energy vector and one of the main catalysts for energy transition and sustainable growth in the Kingdom, under the enlightened leadership of His Majesty the King, may God assist Him. This emerging sector could be a turning point for the Moroccan economy, given the economic, social, environmental, and technological challenges it entails.
Within this framework, the "Morocco Offer" applies to integrated projects from the upstream, starting from electricity generation from renewable energies and electrolysis, to downstream activities such as the transformation of green hydrogen into ammonia, methanol, synthetic fuels, etc., along with the related logistics.
The "Morocco Offer" targets investors or consortia wishing to produce green hydrogen and its derivatives for the domestic market, export, or both. The keen interest already expressed by nearly a hundred investors, both national and international, to produce green hydrogen in Morocco confirms the significant potential of our country in this field.
As land is a key issue for the development of the green hydrogen sector, the State has identified significant public land, totaling around one million hectares. In a first phase, investors will be provided with 300,000 hectares to be allocated in parcels ranging from 10,000 to 30,000 hectares, depending on the size of the planned projects. The State will ensure, through contractual agreements, the preservation and proper utilization of public land.
The "Morocco Offer" also revolves around planning, pooling, developing, and maintaining competitive infrastructure, in line with the best international standards and the needs and evolution of the green hydrogen industry. Additionally, it includes the implementation of incentive measures and support for project holders.
It is worth noting that to ensure the success of the implementation of the "Morocco Offer," the investment framework agreements between the State and the investor include provisions for regular progress assessments of the investment program. This is within a State-investor relationship characterized by transparency and strict adherence to confidentiality rules.