Home » Germany Allocates €38 Million For Morocco’s First Green Hydrogen Plant

Germany Allocates €38 Million For Morocco’s First Green Hydrogen Plant

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Morocco has the potential to produce one of the world’s cheapest green hydrogen but the market remains in its infancy.

Germany’s interest in Morocco’s green hydrogen follows the warming of relations with Rabat following disagreements on the Western Sahara dispute.
Rabat – Germany has vowed to allocate €38 million (MAD 408 million) to support the construction of Morocco’s first green hydrogen plant amid bilateral efforts to consolidate diplomatic and economic ties between Rabat and Berlin.

Moroccan and German officials gathered in Berlin on October 18-19 to discuss opportunities for cooperation.

On Friday, the German embassy in Rabat shared the conclusions of their recent round of negotiations, which included plans to construct a green hydrogen plant in Morocco.

The project is expected to be the “first industrial plant [of its kind] in Africa,” stated the embassy, stressing that it would make “Morocco and Germany leaders in the field of renewable energies in Africa.”

Berlin’s interest in supporting the development of the green hydrogen sector in Morocco follows the recent warming of relations with Rabat after diplomatic disagreements regarding the Western Sahara dispute.

Lauding the long-standing relations between the two states, the German embassy tweeted that “Since the 1950s, Morocco has been Germany’s central partner in the North Africa/Middle East region and a link between the European Union and North Africa.”

Read Also: Germany Reaffirms Commitment To Deepen Cooperation With Morocco

Morocco’s strategic location and its abundant renewable resources have recently attracted the interest of international companies looking to bolster their renewable and green hydrogen portfolio, particularly in North Africa. The list of investors includes Saudi Arabia’s power generation and desalination expert ACWA Power and India’s conglomerate Adani Group.

Germany also appears to be interested in entering the Moroccan green hydrogen market that remains in its infancy.

In addition to the discussion on Morocco’s green hydrogen potential, the Berlin negotiations called for supporting Rabat’s development projects in line with the New Development Model. Meanwhile, stressing the plan’s goal to double Morocco’s current share of women in the labor market to reach 35% in 2035.

The German Development Bank (KfW) has notably agreed to issue a €122 million (MAD 1.3 billion) loan to support Morocco’s social projects aiming to generalize social coverage.

Germany further committed to training Moroccan youth and women in an effort to facilitate their integration into the labor market.

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