Germany's Ministry of Development announced today, Friday, that Germany has agreed with Morocco to form a Climate and Energy Alliance to support the expansion of renewable energy and hydrogen production in Morocco.
Germany seeks to increase its reliance on hydrogen in its future energy mix, with the aim of reducing greenhouse gas emissions from highly polluting industrial sectors that cannot be fully electrified, such as steel production and chemical manufacturing.
Berlin will need to import up to 70% of its future hydrogen needs, as Europe's largest economy aims to achieve net-zero emissions by 2045 but lacks the space and conditions necessary to produce large quantities of wind and solar power.
German Development Minister Svenja Schulze, who signed the alliance declaration with Morocco's Minister of Foreign Affairs Nasser Bourita in Berlin, stated, "Morocco has the ideal conditions for energy transition and green hydrogen production, and Germany wants to import hydrogen."
Schulze added that the new green hydrogen economy must be fair and different from the fossil fuel-based economy. She emphasized, We want to do this fairly and through partnership, so that Morocco can also advance its energy transition and secure its fair share in future value chains.
Electricity Trade
Stefan Wenzel, Parliamentary State Secretary at the German Ministry of Economic Affairs and Climate Action, noted that given the geographical proximity, Berlin supports cooperation in electricity trade between Morocco and the European Union and encourages the involvement of German technology companies and suppliers in developing Morocco’s hydrogen economy.
The Moroccan Ministry of Development mentioned that the world’s largest solar power plant, located in the southern Moroccan city of Ouarzazate, was built with German support. Berlin is also involved in constructing Morocco's first green hydrogen pilot plant.
The ministry added that the plant is expected to produce around 10,000 tons of hydrogen annually, sufficient to produce 50,000 tons of "green steel," which is made using clean energy.
The Moroccan ministry also anticipated further investments under the new German-Moroccan Climate and Energy Alliance.
Morocco's Green Hydrogen Ambitions
Morocco aspires to be a leader in the green hydrogen industry, aiming to export it to Europe and use it for fertilizer production. In addition to the growing appeal of green hydrogen, Morocco is also capitalizing on its clean energy production capacity.
Since 2009, Rabat has launched a strategy to develop clean energy, which currently provides about 39% of its electricity production, with a goal to raise this rate to 52% by 2030.
Last December, Morocco's Minister of Energy Transition and Sustainable Development, Leila Benali, stated that the country uses renewable energy to cover 40% of its total energy needs, supported by "high-quality projects under the investment program, which could enhance renewable energy production to cover about 52% of its energy needs by 2030."
Hydrogen fuel, which can be produced from natural gas, biomass, or nuclear energy, is considered green when hydrogen molecules are separated from water using electricity derived from renewable energy sources like solar and wind power, which produce no carbon emissions.
Green hydrogen can be used as a fuel for transportation or in various industries such as steel, cement, and chemical production.