Moroccan company wins green hydrogen grant

From the newsletter

Moroccan firm Hydrojeel, a subsidiary of state-owned fertiliser producer OCP Group, has won a $32 million grant from Germany’s PtX Development Fund to develop the Jorf Hydrogen Platform. Chosen from 98 applicants across seven countries, the facility will produce 100,000 tonnes of green ammonia annually using green hydrogen generated on-site.

• Morocco has positioned itself as a leader in Africa’s green hydrogen sector, leveraging its abundant solar and wind resources. With 15 announced projects and a National Hydrogen Strategy targeting 30 TWh of demand by 2030 and 307 TWh by 2050, the country offers a favourable environment for large-scale hydrogen investments.

• As part of this strategy, the North African nation is expanding its focus beyond hydrogen production to green hydrogen derivatives, particularly green ammonia. In February, global energy firm H2 Global Energy announced plans for a green ammonia plant in the country after successful feasibility studies. The Jorf Hydrogen Platform aligns with these ambitions, further solidifying Hydrojeel’s candidacy for funding.

More details

• Founded in February 2024 by InnovX, the innovation and technology arm of OCP Group,Hydrojeel was established to lead OCP’s Green Hydrogen & Green Ammonia Program. The initiative focuses on scaling up green hydrogen production, developing green ammonia and advancing sustainable energy technologies. This effort reinforces Morocco’s growing role as a regional hub for clean hydrogen and ammonia exports.

• Germany’s $288.9 million PtX Development Fund supports Power-to-X (PtX) markets in developing and emerging economies. The fund provides non-reimbursable grants for industrial-scale projects across the green hydrogen value chain, including production, processing, storage, transportation and distribution.However, the fund isn’t just about financing individual projects, it’s part of a broader strategy to establish reliable green hydrogen supply chains from emerging markets. With its abundant renewables and ambitious strategy, Morocco has become a key partner in this vision.

• The collaboration has been steadily strengthening. In June 2024, Germany and Morocco signed the German-Moroccan Alliance for Climate and Energy, a framework designed to expand renewable energy projects, strengthen climate adaptation efforts and accelerate green hydrogen development. Beyond direct funding, Germany is actively supporting Morocco’s hydrogen strategy through policy development, economic frameworks and research in PtX technologies.

• Germany’s backing of Hydrojeel highlights a broader industry shift: instead of prioritising hydrogen for energy applications, the focus is increasingly on industrial uses, particularly green ammonia.One of the biggest challenges for green hydrogen projects worldwide is securing long-term offtake agreements. However, green ammonia offers a viable alternative, particularly for fertiliser production. A recent study found that using green ammonia in fertilisers can cut carbon emissions by 51 tonnes per tonne of hydrogen, far more effective than using hydrogen for transportation or heating.

• By replacing conventional ammonia, the Jorf Hydrogen Platform is expected to cut 300,000 tonnes of CO₂ emissions annually. More importantly, Hydrojeel’s ambitious scale-up plan - 1 million tonnes of green ammonia by 2027 and 3 million tonnes by 2032 - positions it as a major global supplier. With global ammonia demand projected to reach 24 million tonnes by 2030, Hydrojeel is targeting a 2% market share, securing a strategic foothold in the emerging green hydrogen economy.

Our take

• Germany’s funding decision signals growing confidence in green ammonia as a scalable and economically viable application of hydrogen. This aligns with a broader shift in hydrogen policy, where industrial applications are seen as more bankable than direct hydrogen use in energy markets.

• The strategic shift to green ammonia not only maximises climate benefits but also reduces financial risks, ensuring more equitable opportunities between developed and developing nations.

• Germany’s investment in Hydrojeel is not just about a single project—it reinforces Morocco’s role as a regional hub for green hydrogen exports, potentially securing future supply chains for Europe. As demand for clean fuels grows, Morocco’s renewable energy leadership and strategic green ammonia focus could position it as a key supplier in the global energy transition.