Mauritania's 4th green hydrogen project kicks off

From the newsletter

Mauritania is set to launch its fourth green hydrogen project, the Megaton Moon, following the signing of an agreement with developer GreenGo Energy. Strategically located south of the capital, Nouakchott, the 6 GW facility will produce 339,000 tonnes of green ammonia annually upon completing its first phase in 2029.

• Currently, the Sahara Desert nation is home to three major green hydrogen projects: Green Aman, which aims to produce 1.7 million tonnes of green hydrogen and 10 million tonnes of green ammonia annually; Project Nour, expected to generate 1.2 million tonnes of green hydrogen per year; and the Infinity Power-Conjuncta Green Hydrogen Project, targeting the production of up to 8 million tonnes of green hydrogen or related products annually.

• The project aligns with Mauritania’s ambition to position itself as a leading green hydrogen exporter, driven by rising global demand for clean energy as countries accelerate their decarbonisation efforts. According to Mauritania’s 2021 strategic roadmap, the country aims to secure 1.5% of the global hydrogen market and up to 1% of the green steel market by 2050. To achieve this, it plans to produce 20.1 million tonnes of green hydrogen annually. 

More details

• GreenGo Energy’s decision to enter Mauritania for its first African project reflects a calculated move based on several factors. The country offers prime conditions for green hydrogen production, including abundant solar and wind resources along the Atlantic coast, strategic proximity to European markets, a government actively attracting foreign investment, and a progressive regulatory framework that favours green energy projects.

• In 2024, Mauritania introduced the Green Hydrogen Code, the first of its kind in Africa. This legal framework provides significant tax incentives, including VAT and corporate tax exemptions, as well as a progressive corporate tax scheme that starts at 15% and increases only after investors recover their initial costs.

• The law also established the Mauritanian Agency for Green Hydrogen (AMHV) to oversee sector operations, ensuring regulatory transparency and streamlining foreign investment. These policies, combined with the government’s openness to public-private partnerships, have helped position Mauritania as a viable hydrogen hub.

• Beyond attracting investment, these policies are part of a broader strategy to leverage green hydrogen as a driver of economic transformation. With an unemployment rate of 10.51%, the country projects that hydrogen exports could increase GDP by 40-50% by 2030 and 50-60% by 2035, while creating thousands of jobs. The Megaton Moon Project will be instrumental in this transformation, providing employment in construction, energy production, and logistics.

• Mauritania is also actively pursuing strategies to enhance its energy security and sustainability. Despite its substantial natural gas reserves, the nation has been predominantly reliant on fossil fuels. In 2020, Mauritania adopted a national strategy aiming to transform its energy sector by increasing the share of renewables in its energy mix to 60% by 2030, aligning with its nationally determined contributions under the Paris Agreement.

• This transition not only aims to reduce dependence on fossil fuels but also positions Mauritania as a potential key player in the global green hydrogen market. The EU, under its REPowerEU plan, has set ambitious targets to produce 10 million tonnes of renewable hydrogen domestically and import an additional 10 million tonnes annually by 2030 as part of its strategy to phase out fossil fuels and enhance energy security. Mauritania’s strategic location and renewable energy initiatives align well with the EU’s import strategy, potentially facilitating future energy partnerships.

• In February 2024, European Commission President Ursula von der Leyen visited Mauritania, signalling Europe’s growing interest in securing hydrogen partnerships. The visit could be seen as an acknowledgement of Mauritania’s potential role in Europe’s decarbonisation roadmap, reinforcing its geopolitical importance in the energy transition.

• Despite its promising trajectory, Mauritania faces significant infrastructure hurdles. Its port facilities require major upgrades to handle large-scale hydrogen exports, while road expansions between Nouakchott and Nouadhibou, where its deep-sea port is located, remain a priority. While plans are underway to modernise these transport networks, delays could hinder the country’s ability to meet its export targets.

Our take

• The launch of the Megaton Moon project marks a significant step in Mauritania’s green hydrogen journey. However, infrastructure limitations and the need for workforce development pose challenges that must be addressed to ensure long-term success.

• While Mauritania’s regulatory incentives and natural resources position it as a promising green hydrogen hub, securing long-term buyers and trade agreements will be crucial in determining the project's commercial viability.

• Competition from other emerging hydrogen markets, such as Morocco and Namibia, underscores the need for Mauritania to accelerate infrastructure development and establish strategic partnerships to maintain its competitive edge.