Morocco eyes new Gulf and EU capital for renewable energy and green hydrogen exports under revised investment charter

Morocco unveiled a revised investment charter and the “Morocco Offer” on March 11, 2024, targeting renewable energy and green hydrogen exports to Gulf and European Union markets. According to government officials, the measures include subsidies and incentives aimed at reforming the energy sector and promoting large-scale investment in green hydrogen projects.

The revised investment charter, established under Framework Law No. 03‑22 of Dec. 9, 2022, forms the legal backbone of Morocco’s push to attract large-scale investment in renewable energy and green hydrogen, officials said. Article 25 of the charter commits the government to reform the energy sector and promote renewable energy use, linking investment incentives directly with the country’s energy transition objectives. The main incentive scheme under the charter offers subsidies of up to 30% of total investment, contingent on job creation and minimum capital expenditure thresholds, records show. Projects in renewable energy and green hydrogen qualify as “promising sectors,” granting them an additional 5% premium within the incentive framework.

According to analyses of Morocco’s hydrogen roadmap, the country aims to produce 4 terawatt-hours (TWh) of green hydrogen annually for domestic use and 10 TWh for export by 2030, making exports a central pillar of the strategy.

The government’s launch of the “Morocco Offer” on March 11, 2024, complements the charter by detailing a comprehensive package to develop the green hydrogen sector across the entire value chain, sources confirmed. The Morocco Offer targets investors producing green hydrogen and its derivatives—such as ammonia, methanol, and synthetic fuels—for domestic use, export, or both. It does not establish a separate incentive scheme but confirms that integrated green hydrogen projects can access the charter’s customs, VAT, and investment subsidies.

The Morocco Offer includes targeted measures such as state commitments to allocate approximately 1 million hectares of land for hydrogen-related projects, highlighting the scale of export ambitions.

Under the charter’s main incentive scheme, projects must invest at least 50 million dirhams (approximately $5 million) and create 50 stable jobs, or create more than 150 stable jobs, to qualify for subsidies up to 30% of capital expenditure, according to official documentation. Additional bonuses include a job-creation premium of 5–10% of capital expenditure depending on employment levels, a territorial bonus of 10–15% for projects in designated provinces, and a 3% sustainability bonus for projects meeting official criteria. Renewable energies, explicitly including green hydrogen-linked generation, are eligible for a 5% sectoral premium. Green hydrogen projects also benefit from import duty and VAT exemptions on equipment and materials once an investment agreement is signed with the state.

Morocco’s national hydrogen strategy, unveiled in 2021, and subsequent policy analyses emphasize the country’s goal of becoming a preferred green hydrogen supplier to European Union markets, aligned with the EU’s decarbonization goals and the REPowerEU plan. The strategy focuses on exports mainly to Europe and domestic industrial use in the short term through 2030. The export target of up to 10 TWh annually is planned primarily via maritime routes, as hydrogen pipeline infrastructure remains limited.

A Germany-Morocco alliance on green hydrogen, announced on June 28, 2024, aims to support production in Morocco and explore transport methods to Germany and wider Europe, confirming the EU-oriented export planning. Corporate projects such as TotalEnergies’ planned green ammonia facility in Morocco, announced on Oct. 29, 2024, envisage producing approximately 200,000 metric tons of green ammonia annually for export to Europe. This project is described as a first phase of a “world-scale green hydrogen hub,” according to company statements.

While European markets are the primary export focus, Morocco’s green hydrogen policy documents also identify Gulf countries as potential partners and capital sources, officials said. The country’s geostrategic location at the crossroads of Europe, Africa, and the Mediterranean is viewed as attractive for Gulf investors seeking to co-finance export corridors toward EU markets. The Morocco Offer and investment charter provide non-discriminatory access to incentives and large-scale land allocation for international investors, including Gulf sovereign wealth funds and energy companies.

World Bank and related reform matrices highlight Morocco’s plans for land mobilization, infrastructure development, and regulatory clarity as key enablers for large Gulf-backed projects targeting export markets. Although official strategy texts emphasize European demand, Gulf capital is seen in policy analyses as a potential financial and technological partner for integrated projects exporting primarily to Europe.

Developing a green hydrogen export industry will rely heavily on maritime transport of synthetic liquid fuels such as ammonia and methanol, as hydrogen pipelines are still nascent, according to official and analytical sources. Morocco’s Green Energy Corridor concept positions the country as a node in cross-Mediterranean energy trade, with up to 30% subsidies under the investment charter intended to catalyze private investment in export-oriented infrastructure. The TotalEnergies project documentation mentions using renewable electricity and desalinated seawater to produce green ammonia for shipment to Europe, illustrating the integrated infrastructure Morocco aims to replicate.

Moroccan authorities and international partners describe the investment charter as placing private investment “at the heart of economic development,” with green hydrogen positioned as a flagship sector for export-led growth. The charter is horizontal and sector-neutral except for agriculture and phosphates but introduces premiums and caps making renewable energy and green hydrogen particularly attractive to investors. The Morocco Offer is framed by the government as a tool to make Morocco a “global leader” in industrial production and export of green hydrogen and ammonia, leveraging the country’s high solar and wind potential and proximity to European markets.

World Bank documents characterize Morocco as building a regulatory and incentive framework to mobilize large-scale foreign direct investment for green hydrogen with a strong export orientation. Investment climate statements emphasize that the charter simplifies procedures, harmonizes incentives, and provides legal stability to attract capital from EU member states and Gulf partners into renewable and hydrogen export projects.