The Trump administration has provided funding support for a substantial green hydrogen initiative in Morocco, marking an unexpected alignment with clean energy development despite the administration’s broader shift away from certain environmental policies. The US Trade and Development Agency, a congressionally authorized federal entity, issued the grant to ORNX, a multinational joint venture, for preliminary feasibility studies on establishing a large-scale ammonia production facility in Morocco’s southern provinces.
The project represents a departure from conventional ammonia production methods. Rather than combining nitrogen with hydrogen derived from natural gas or coal, this initiative employs electrolyzer systems to extract hydrogen from water using electricity generated from renewable sources. Morocco’s abundant wind and solar resources position the country as a suitable location for such operations. The grant specifically targets electrolyzer technology developed by Electric Hydrogen, a Massachusetts-based startup founded in the early 2020s that has garnered substantial private investment from entities including Microsoft, Amazon, and bp.
The Laâyoune facility, to be developed by ORNX in collaboration with Spanish firm Acciona and German manufacturer Nordex, is projected to produce 560,000 tons of ammonia annually. Morocco established its broader “Morocco Offer” green hydrogen investment plan, which in March allocated approximately 319 billion dirhams (nearly $87 billion USD) across six projects in three southern regions. The government aims to export green hydrogen and ammonia to European and global markets, with ammonia production forming the primary focus alongside secondary applications in e-fuels and green steel.
The grant announcement carries geopolitical implications, as the project location falls within a disputed territory claimed by Morocco and contested by the Algeria-backed Polisario Front. The Trump administration has previously supported Morocco’s sovereignty claims in the region, and recent statements from US officials underscored American engagement in the area. The funding also follows Morocco’s naming of a major highway infrastructure project after President Trump.
The declining cost of renewable energy and improvements in electrolyzer manufacturing efficiency have begun addressing the traditional cost barrier hindering green hydrogen adoption. Electric Hydrogen has separately received federal support through a $46.3 million Department of Energy grant in 2024, intended to advance manufacturing capabilities at its Massachusetts facility, which aims to produce 1.2 gigawatts of capacity annually.
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