Morocco Reinforces its Commitment to Hydrogen and Competes With Spain to be The Great Supplier of Europe – Cincodias

According to CincoDias news, Morocco is showing its strong dedication towards hydrogen and is competing with Spain to become the major supplier of Europe.

The solution to the difficulty of reducing the carbon footprint of Europe may be found in the southern part of the continent. However, it is uncertain which exact location may hold this solution. Aspiring to become a prominent figure in the hydrogen market, Spain faces fierce rivalry from its southern neighbor, Morocco, who aims to become a major player in this field.

According to research funded by the European Commission, a country in North Africa may surpass Spain's energy production by over 30% within the next few decades, reaching a maximum of 160 terawatts. If this happens, this country may become an essential supplier to the countries that make up the European Union by providing over 5% of the energy demands of the continent.

The German Fraunhofer Institute conducted a study and found that Spain, despite being close to Germany, has the potential to be the second largest hydrogen producer in Europe. If Spain is able to achieve an electrolysis capacity of over 120 gigawatts by 2050, it can surpass other countries and only be second to France.

If hydrogen is commonly used across the continent but the installation of electrolysers and renewable production is not ideal, Moroccan exports will only be needed in an inadequate situation.

The African kingdom has shown strong dedication and has continuously provided official backing for the growth of the value chain since 2021. A recent report by the consulting firm Deloitte suggests that the earnings generated from exporting green hydrogen have the potential to erase the shortfalls in the trade balance of Morocco.

During this past May, TotalEnergies from France declared that they will invest 9.4 billion euros in a project pertaining to hydrogen and ammonia. Their exit strategy is predicated on exporting their innovation to Europe. After this announcement was made, in June, the public company OCP, who is responsible for processing phosphates, proposed a similar project. This time the sum of the investment equaled 7 billion euros.

According to Emilio Nieto, who is the head of the National Hydrogen Center, there is a statement.

North African production could potentially enter Spain and Italy through their ports.

The head of the National Hydrogen Center, Emilio Nieto, leads a collective of government entities such as the Ministry of Science, Innovation, and the Junta de Castilla-La Mancha. Nonetheless, the recent revisions made to the National Integrated Energy and Climate Plan (PNIEC) and the Hydrogen Roadmap do not touch on the subject of imports.

To unlock the potential of Morocco, it is crucial to have a physical infrastructure that links the Iberian Peninsula, North Africa, and the rest of Europe. This means that the initiatives laid out by Spain and France are notable, particularly the H2Med project and Enagas' trunk network plan for 2040. These initiatives already have physical interconnections with Morocco, utilizing a center in Tarifa located in Cadíz.

According to the Spanish operator, using tubes to transport hydrogen helps to decrease energy waste and eliminates the need for a larger electrical infrastructure to achieve the same amount of hydrogen at the receiving site. Cepsa also previously announced their plans to build a hydroduct in 2022 which will enable them to import hydrogen from Morocco to their San Roque refinery.

The individuals who wrote the report emphasize that this is a chance, rather than an imminent danger.

According to CincoDías, Khaled Al-Dabbas, one of the researchers, highlighted.

According to all the forecasts, Spain will be exporting more hydrogen than it imports.

The country may find it advantageous to bring in electricity from outside sources in order to manage sudden changes and fluctuations related to different seasons.

The major corporations in the industry classify these situations similarly.

According to Daniel Fraille, who is the policy director for HydrogenEurope:

Just because Morocco has more favorable wind and solar resources compared to Spain does not necessarily mean that they will invest more in producing hydrogen.

According to Daniel Fraille, who works as a policy director at HydrogenEurope, an organization that consists of over 250 different companies that deal with energy alternatives such as Enagas and Cepsa, it is vital to receive recognition from officials, have proper regulations set in place, and make sure the industrial production of hydrogen is streamlined. These factors may be even more important than just the financial potential of a project.

According to a report released by the European Commission, it would be cheaper to produce hydrogen domestically rather than importing it, even if it was brought in through pipelines. The report suggests that importing hydrogen from Africa would only be necessary if renewable energy resources are insufficient or not being optimally utilized.

Don't Repeat Errors

According to a report commissioned by Brussels, there is positive news to share: Europe's industrial sector can indeed become decarbonized. This can be achieved by utilizing both electrification and swift adoption of hydrogen-based technology. Even though Africa is considered an advantageous location for producing green hydrogen, experts emphasize the need to avoid repeating Europe's errors and instead, learn from them.

According to Nieto, it is essential that we vary our actions and avoid always repeating the same routine. He suggests that a key aspect is to strive for the proximity of hydrogen production plants to areas where it is utilized.

According to this specialist, there is a risk in sending hydrogen to Germany instead of using it for the Spanish industry, as it is more lucrative. There is also a possibility of fulfilling local demand by relying on Moroccan production. The European Commission predicts that exporting hydrogen produced in Morocco can meet approximately 80% to 90% of the region's local demand.

The key to Europe's success lies in not repeating the same errors as Spain. While imports may seem cost-effective, relying on foreign sources of energy poses a significant risk. Al-Dabbas highlights the significance of developing energy strategies that prioritize resilience and reliability, citing the recent energy crisis triggered by Russia's annexation of Ukraine. Europe must learn from these lessons and prioritize self-sufficiency in its energy policies.

Check out the most recent updates influencing the hydrogen market on Hydrogen Central.

The country of Morocco is increasingly dedicated to the development of hydrogen fuel and is striving to outcompete Spain in becoming Europe's leading provider. This commitment serves as a testament to Morocco's dedication to the advancement of renewable energy sources. The date of this announcement is August 25th, 2023.