The Moroccan government and TE H2, alongside its partners, have signed a Preliminary Contract for Land Reservation for the ‘Chbika’ project. TE H2 is a joint venture between TotalEnergies and the EREN Group. This collaboration allows TE H2 along with two Danish companies to initiate pre-FEED studies. TE H2’s Danish partners in the project are CIP through its Energy Transition Fund and A.P. Møller Capital via its Emerging Markets Infrastructure Fund.

The ‘Chbika’ project seeks to develop 1 GW of onshore solar and wind capacity to produce green hydrogen through desalinated seawater electrolysis, converting it into 200,000 tonnes per year of green ammonia for European markets. This project marks the first phase of a plan to establish a large-scale green hydrogen production hub. TE H2 and CIP will lead the renewable energy development, while A.P. Møller Capital will focus on the port and associated infrastructure.

Earlier this year, TotalEnergies and Air Products entered into a 15-year agreement to supply Europe with 70,000 tons of green hydrogen annually, starting in 2030. This agreement follows TotalEnergies’ tender request for 500,000 tons of green hydrogen annually to decarbonise its European refineries. According to the agreement, Air Products will supply green hydrogen directly to TotalEnergies’ Northern European refineries from its global supply network.

REGlobal’s Views: Morocco has a huge renewable energy potential, ample land and is close to demand centers in Europe, making it an ideal destination for green hydrogen production. The country can expect many large green hydrogen projects to come up in the near future. Other North African nations like Algeria and Egypt are also focusing on developing large green hydrogen facilities to supply to Europe.