Mauritania scales green ammonia production with major deals

From the newsletter

The northwest African nation of Mauritania has signed two framework agreements to boost its green ammonia production. One is a $1.5 billion deal with Polish ammonia producer Hynfra to produce 100,000 tonnes annually, while the other with Chinese developer United Energy Group (UEG) targets one million tonnes a year for export.

• Mauritania joins a growing list of hydrogen-producing nations in Africa that are diversifying into green ammonia and other derivatives.

• The collaboration with Asian and European developers reflects the country’s intent to widen its alliances and secure a foothold in the fast-evolving green ammonia market.

More details

• The two agreements were signed on behalf of Mauritania by its Energy and Petroleum Minister, Mohamed Ould Khaled during the 7th edition of the Mauritanides' International Mining and Energy Conference and Exhibition held in capital Nouakchott September 8-10.

• Hynfra’s agreement comes a year after a 2024 memorandum of understanding (MoU) that signalled intent to pursue the development. Consequently, the company will now set up green ammonia production facilities in the southern zone of the Somelec wind farm, with exports carried out through Mauritania’s largest port, the Port of Friendship. The project will integrate photovoltaic and wind farms, electrolysers, a green ammonia plant, and supporting infrastructure such as water desalination, energy storage, and logistics for export. 

• Meanwhile, UEG plans to produce green ammonia at two sites in northern and central Mauritania. The company is also assessing opportunities to produce hot-briquetted iron (HBI) or green steel. Speaking at the signing of the UEG deal, Minister Khaled said green hydrogen “represents an opportunity for sustainable growth and job creation for both Mauritania and the region.”

• The two projects join a growing list of projects focused on green ammonia in the Atlantic-facing nation. Others include Project AMAN targeting 10 million tonnes per annum (MTPA) of green ammonia and Megaton Moon aiming for 18mtpa. By engaging both European and Asian developers, Mauritania is widening its pool of partners and future off-takers. This diversification is strategic: it reduces dependency on European demand alone and positions the country to tap into emerging Asian ammonia markets as well. Such hedging could prove critical given current uncertainties in global carbon pricing and hydrogen demand.

• The Sahara Desert nation is leveraging its 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. These measures have helped position Mauritania as a viable hydrogen hub, a point highlighted by Leslie Chang, Vice President and General Counsel of UEG, who praised the country’s regulatory framework at the signing ceremony.

• Despite favourable conditions for green hydrogen development Mauritania faces serious challenges. 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. Global market dynamics also weigh heavily. In June 2025, CWP Global announced the stalling of the flagship Project AMAN, citing weak carbon pricing and limited buyer appetite for paying a premium on clean fuels.

Our take

• While Hynfra’s project is modest at 0.1 mtpa, it signals a strategy of diversifying project scale and developer base.

• Green ammonia is fast becoming the derivative of choice, offering the most commercially viable and scalable pathway to market.

• The new agreements signal continued investor confidence in Mauritania’s hydrogen economy, even as its flagship AMAN project stalls. This suggests a pivot toward smaller, more phased developments that may be easier to finance and bring to market in the current pricing environment.