What Morocco’s infrastructure deal means for green hydrogen

From the newsletter

The Moroccan government has signed a $14 billion agreement with a consortium to develop power, transmission and desalination infrastructure—critical building blocks for large-scale green hydrogen production. The deal includes a 3 GW HVDC transmission line, 1.2 GW of new renewable energy capacity and a power purchase agreement with the national utility ONEE.

• While Africa boasts abundant renewable energy potential ideal for a green hydrogen economy, inadequate infrastructure remains a major constraint, limiting the continent’s ability to fully capitalise on this potential. 

• Morocco’s investment reflects a wider African trend of scaling infrastructure to attract green hydrogen investments, positioning the continent as a future hub in the clean energy transition.

More details

• The Moroccan consortium includes the Mohammed VI Investment Fund, energy firm Nareva and TAQA Morocco, a subsidiary of UAE-based TAQA Group. TAQA Morocco and Nareva will each hold a 42.5% stake, with the remaining 15% held by the sovereign fund and public stakeholders.

• The deal also includes the acquisition of a 400 MW combined-cycle gas turbine (CCGT) power plant in Tahaddart, along with the development of 1.1 GW of new CCGT capacity across the country. It further covers 2.5 million cubic meters per day of seawater desalination capacity and a 2.2 mcm/day water transport project via the national water highway.

• This integrated $14 billion package marks a shift toward holistic infrastructure planning. By bundling electricity and water projects with transmission and generation assets, Morocco is de-risking future green hydrogen production by securing core inputs for electrolysis.

• Green hydrogen is an infrastructure-intensive technology, requiring a complex and interconnected network of assets to be viable at scale. Historically, Africa’s progress in this sector has been constrained by inadequate transmission capacity, limited desalination infrastructure, unreliable power supply and underdeveloped logistics systems. 

• For example, preliminary findings from a GIZ-commissioned baseline study in Eastern Africa flagged underdeveloped energy infrastructure as a critical barrier. While the study focused on the East, the insights reflect a broader continental challenge that has slowed project development and limited the ability to harness renewable potential.

• Central to this ecosystem are solar, wind and hydro generation; HVDC transmission lines; desalination plants producing ultra-pure water; and electrolysis units. These must be supported by hydrogen storage systems, pipelines or transport corridors and specialised export terminals.

• Port readiness is also critical. Morocco’s Tanger Med, one of the Mediterranean’s largest ports and South Africa’s Durban, the busiest in sub-Saharan Africa, are undergoing upgrades to handle hydrogen cargo. On its part, Egypt’s Suez Canal offers a strategic route, but its adjacent ports need adaptation for hydrogen.

• Meanwhile, Namibia, Mauritania and Kenya are scaling port capacity to support their hydrogen ambitions, though infrastructure gaps persist. Closing these disparities is key to enabling Africa’s full export potential.

• While Morocco’s deal doesn’t explicitly target green hydrogen, its infrastructure priorities, renewables, desalination, HVDC, align with hydrogen needs. This strategy mirrors a broader trend across Africa’s emerging hydrogen leaders who are aggressively scaling infrastructure to position themselves as global hydrogen hubs.

• For example, Mauritania has signaled a strategic pivot by privatising new power generation projects, fostering independent power producers to accelerate renewable energy growth, a critical enabler for green hydrogen production. 

• Similarly, in Egypt, Sterlite Power has proposed the development of a dedicated green hydrogen electricity grid, a $6 billion initiative aimed at resolving transmission bottlenecks and enabling scalable hydrogen generation. 

• Building on these efforts, South Africa is targeting 10 GW of electrolysis capacity by 2030, backed by its Hydrogen Society Roadmap and a €5.1 billion EU-funded package focused on grid expansion, logistics and water infrastructure. 

• Meanwhile, neighboring Namibia has launched the SDG Namibia One infrastructure fund, designed to catalyse green hydrogen investments across all project phases—from development through construction to operation.

• Even as African countries scale up their infrastructure, they will need robust policy frameworks, skilled workforces, and strong institutional coordination to translate these investments into viable green hydrogen markets. 

Our take

• Accelerated, coordinated investment in transmission, production and export infrastructure is essential to unlock Africa’s role in the global clean energy transition

• These coordinated infrastructure investments underscore Africa’s firm commitment to unlocking green hydrogen’s economic potential and environmental benefits, positioning the continent as a vital player in the global hydrogen economy.

• Becoming a green hydrogen leader is as much about infrastructure readiness as renewable resource availability. Africa’s emerging hydrogen hubs show that coordinated development across power, water and transport sectors is non-negotiable.