TAQA Morocco – majority-owned by Abu Dhabi’s National Energy Company – has announced plans to invest $27.2 billion in a green hydrogen project in Morocco’s Dakhla-Oued El-Dahab region as part of efforts to accelerate energy transition to the North African country. The project will generate 6,000 MW of renewable energy, which will be used to produce and export green hydrogen to meet global demand for carbon-free energy. The investment is expected to help achieve Morocco’s goal of becoming a leading player in the global green hydrogen sector and attract further investment to the region.
Made earlier this week, the announcement follows a series of recent investments by UAE companies in Africa’s energy sector. Between 2016 and 2020, the UAE invested $23.8 billion in Africa, making it the second largest bilateral investor on the continent after China. This has sparked a series of renewable energy investments by Emirati companies in both the public and private sectors, including Infinity Power, AMEA Power and Masdar, among others.
The new hydrogen development also comes just weeks after COP28 was held in Dubai, where the UAE signed numerous agreements to develop renewable energy capacity in Africa. Among these agreements, AMEA Power signed over eight Memoranda of Understanding with Mozambique, Uganda, Ethiopia and Mauritania, focusing on solar, hydropower and green hydrogen projects.
Aiming to expand their market share and achieve climate diplomacy, Emirati companies are actively pursuing partnerships with African and European countries, with the ladder serving as a key export market for African hydrogen. An example of this multilateral cooperation is the $34 billion hydrogen project in Mauritania being developed by the UAE’s Masdar and Germany’s Conjuncta, demonstrating the potential for mutually beneficial engagement.
To date, Europe has made significant gains in developing green hydrogen on the African continent and has set a target of producing 10 million tonnes of renewable-based hydrogen by 2030, which could serve as a solution to the bloc’s resulting energy deficit from the sanctions. Russian gas. In 2022 alone, the European Union (EU) concluded agreements with Morocco, Egypt and Namibia to help develop renewable hydrogen sources and, when possible, serve as suppliers to the EU. In addition, the EU provides financial and technical assistance to Kenya, Mauritania and South Africa to help explore their respective hydrogen development potential.
The growing cooperation between the EU, the UAE and Africa highlights the continent’s potential as a strategic player in the global hydrogen market and supply-demand dynamics. Africa is one of the few regions with massive, co-located renewable energy resources, with an estimated potential of 850 TW in solar and wind alone and the ability to capture up to 10% of the global green hydrogen market. The UAE and the EU, with advanced technological capability, extensive experience in renewable energy development and strong financial capabilities, could serve as partners and catalysts for Africa’s green energy revolution. This mission will be at the forefront of the upcoming Invest in African Energy 2024 forum, taking place in Paris next May. The forum invites investors, technology and service providers and project developers from Europe and the Middle East to share their expertise and engage with Africa’s top energy investment prospects.
Sign up now to Invest in African Energy at https://invest-africa-energy.com/. Don’t miss this opportunity to connect with industry leaders, policy makers and investors. The event will take place in Paris from 14 to 15 May 2024.