AfDB Allocates $5.28 Million Grant to Morocco’s Guelmim Green Hydrogen Valley
Rabat, The Gulf Observer: The African Development Bank (AfDB) has selected Morocco’s Guelmim Green Hydrogen Valley to receive a $5.28 million reimbursable grant under the Africa Green Hydrogen Programme, supporting efforts to advance the project toward investment readiness.
The funding decision was announced on September 18 following the programme’s call for proposals, which attracted 81 submissions from 18 African countries. The Guelmim project, sponsored by Moroccan company Nareva Holding, was among four green hydrogen and derivatives projects selected for support.
The financing will be provided through the AfDB’s Sustainable Energy Fund for Africa (SEFA), subject to approval by the Bank’s Board of Directors. The grant is intended to support preparatory work, including feasibility studies, engineering, environmental assessments and financial structuring, rather than construction activities.
According to the AfDB, the four selected projects in Egypt, Morocco, Namibia and South Africa represent an estimated $23 billion in potential investment. Together, they are expected to involve around 20 gigawatts of solar and wind generation capacity, 7 gigawatts of electrolyser capacity and 2,950 megawatt-hours of battery storage.
The Guelmim project forms part of Morocco’s broader strategy to develop green hydrogen and its derivatives, including sustainable fuels and industrial applications. The initiative is also expected to contribute to renewable energy development, industrialisation, export opportunities, technology and skills transfer, and job creation.
The AfDB said its Africa Green Hydrogen Programme aims to increase private-sector participation in the emerging green hydrogen sector by improving project bankability and supporting investment preparation. The programme also seeks to facilitate the use of renewable energy resources and promote low-carbon economic development across the continent.
The AfDB’s support adds to its wider cooperation with Morocco in infrastructure and development. The bank announced separate financing agreements worth €405 million with Morocco on September 17 for railway infrastructure and vocational training programmes.
