Morocco: Green hydrogen - the Moroccan Offer

19 Mar 2024    2 minute read
Green Hydrogen Hydrogen Energy Transition Sustainability Renewable Energy

In brief

On 11 March 2024, the Head of Government published Circular n° 03/2024 concerning the implementation of the Moroccan Offer for the development of the green hydrogen sector ("Circular").

The Circular applies to all investors wishing to develop projects integrating the entire value chain of green hydrogen production, including the components of renewable energy, electrolysis production, storage, transport and logistics, whether these projects are intended for import or export.

Contents

Main aspects

1. Governance of the green hydrogen sector

The Circular provides for the governance of the green hydrogen sector to be entrusted to the Moroccan Agency for Sustainable Energy (MASEN) and a dedicated steering committee.

MASEN's mission is to inform and support investors during the project validation process. As such, MASEN will receive initial investment applications and screen them before forwarding them to the steering committee. MASEN cannot itself carry out green hydrogen production projects on an industrial scale.

The steering committee will be responsible for approving the main agreements to be concluded with investors throughout the validation process.

The committee will also be responsible for monitoring project progress and developing the sector. It will be assisted by an investment committee.

Investors wishing to develop only one component of the hydrogen sector, or to invest downstream, can apply to the Regional Investment Centers or the Moroccan Investment Development Agency, and will benefit from the common investment regime.

2. The incentive scheme

The Circular does not introduce specific incentives for the hydrogen sector. Instead, it refers to existing advantages under the new investment charter.

Investors can benefit from tax and customs incentives (import duty and VAT for domestic and imported goods).

Dedicated industrial acceleration zones may also be created.

3. Land and dedicated infrastructures

The Circular mentions the identification by the State of 1 million hectares of land to support the green hydrogen sector, mainly in areas earmarked for solar and wind energy production under Law 13-09.

As green hydrogen is still an emerging sector, the State has decided to adopt a phased approach in order to maintain the flexibility required to adapt to changes in the sector, particularly technological, legislative, regulatory and market developments. The first phase aims to mobilize 300,000 hectares to be divided into plots of 10,000 to 30,000 hectares. The State also provides for the possibility of extension depending on projects' needs.

The government authorities in charge of the Interior and Economy and Finance are in charge for mobilizing land for the Moroccan Offer.

The Circular underlines the importance of developing the infrastructure necessary for green hydrogen such as power grids and port infrastructure, through the cooperation of various public actors and public-private partnerships.

French version

Contact Information
Keltoum Boudribila
Partner
Casablanca
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keltoum.boudribila@bakermckenzie.com
Kamal Nasrollah
Partner
Casablanca
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kamal.nasrollah@bakermckenzie.com

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