Dahamco to Invest $25 Billion in Hydrogen and Ammonia Production Project in Morocco
A private company from the United Arab Emirates and Morocco, Dahamco, plans to invest nearly $25 billion in a hydrogen and ammonia production project in the Kingdom. The company has already obtained approval from Rabat to set up the project in the Atlantic port of Dakhla, in the disputed Western Sahara region. The majority of the land allocated for the project has been registered.
From a political standpoint, the location is an escalation against Algeria, with which the conflict over Western Sahara continues to intensify.
The project will be developed in several phases, given the global investment. This will enable the company to ensure a competitive average cost and avoid risks associated with early adoption. The first phase is expected to produce nearly one million tons per year and will cost around $4 billion. If everything goes as planned, it will be operational by 2031 and will have significant production capacity. The subsequent phases of the project are expected to come online at intervals of 4 to 5 years from the operation of the first phase.
Morocco is thus confirming its ambitions in clean energy. The project pipeline is valued at nearly $60 billion, with 90% focused on green hydrogen and ammonia. It leverages the country's vast areas with high solar irradiation, strong winds, and privileged access to the European market. The commitment to sustainability will continue to attract significant investments.
