Moroccan media reported on Tuesday, July 1, that the government has secured the necessary land rights in the Guelmim-Oued Noun region of southern Morocco for the Chbika project. This initiative is a strategic play in the global renewable hydrogen market, with Morocco backing green ammonia as its primary export vehicle. The project, led by a consortium of TotalEnergies, Copenhagen Infrastructure Partners, and A.P. Møller Capital, aims to produce 200,000 tons of green ammonia annually.

The Chbika project will be powered by 1 gigawatt (GW) of renewable energy and an electrolyzer unit supplied with desalinated seawater.

Green ammonia is easier to store and transport than pure hydrogen, aligning with the European Union's strategy. The REPowerEU plan aims to import 10 million tons of renewable hydrogen by 2030.

The Moroccan project emerges as green ammonia exporters gain traction. In July 2024, Germany awarded a supply contract for 259,000 tons of green ammonia to Egypt-based Fertiglobe. This contract, spanning 2027 to 2033, guaranteed a price of €811 per tonne, about $960, including transport, according to data from Germany’s Federal Ministry for Economic Affairs. By comparison, the spot price of fossil-based ammonia, produced from natural gas, exceeded $580 per tonne in 2024, according to the Platts index (S&P Global).

No public details have yet been released regarding Chbika’s production costs, commercial agreements, or commissioning timeline. Market research firm MarketsandMarkets estimates the global ammonia market across all sources at $79.5 billion in 2024, projected to reach $92 billion by 2029, growing at an average annual rate of 3%.