green hydrogen in morocco - dii desertenergy

GREEN HYDROGEN IN MOROCCO

A PATHWAY TO DECARBONIZING INDUSTRY

June 18th, 2020

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GREEN HYDROGEN IN MOROCCO : A PATHWAY TO INDUSTRY DECARBONISATION

Ithmar Capital, a Multi-Sectoral Sovereign Strategic Investment Fund whose mission is to support productive investment and the implementation of national sectoral strategies

Sovereign Strategic Investment Fund of Morocco founded in 2011 to

support Morocco's Tourism strategy

Initial commitment by the Government to reach MAD 15 billion over a

10-year period with a share capital of MAD 1.5 billion

Mandate enlarged to all the productive sectors of the economy in 2019

A portfolio of structuring projects, mainly touristic stations and multi-

destination real estate complexes

A dual approach seeking economic impact and commercial viability to

direct private capital towards sectoral strategies

A trusted third party synthesizing the challenges of the public sector

and private operators100% owned by the Moroccan Government

3(1) Current national commitments

Source: Hydrogren Roadmap Europe


Current strategies are not sufficient to decarbonize our economies towards a sustainable future…

CHALLENGES

- Achieving deep decarbonization

- Manage variable RE

- Meeting customers' expectations

- Retaining EU technology leadership to

create jobs and wealth

4Source: McKinsey & Co.


…electrification could tackle an important part of the industry decarbonisation…

INDUSTRY ENERGY CONSUMPTION BREAKDOWN 2017

Fuel consumption accounts for almost 45% of energy consumption. It includes generation of heat for processes such as drying,

melting and cracking

Almost half of fuel consumed for energy can be electrified with technology available today for temperature ranging from below 100°C

to 1,000°C

Zero-carbon electricity consumption in the industrial sectors in 2050 should increase from 6 EJ per year in a business as usual case to

c.25 to 55 EJ per year in a decarbonization case which translates in in terms of generation capacity to installing another c.2,000 GW to

4,000 GW of wind capacity or by adding c.3,000 GW to 7,000 GW of solar PV

5Source: IAE

…Hydrogen is a credible option for the decarbonization efforts due to his various sources and applications…


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A crucial component in overcoming many energy challenges and decarbonization gaps…


Integrate more renewable energies notably by developing additional capacities in regions with untapped solar & wind resources

Decarbonize energy intensive sectors : heavy industries (steel, non-ferrous metals, etc.), transportation (trucks, ships, planes),

heating, etc.

Increase energy security by diversifying the power mix and bringing some flexibility to the grids

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…particularly with large scale potential in energy intensive industries


Most efficient way today to decarbonize steel making : Hydrogen based direct reduction process

Replace with/include hydrogen in existing processes used in industrial heating

Hydrogen as a feedstock : fertilizers and e-fuels

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1,2 GW installed wind capacity

0,7 GW installed solar capacity

1,7 GW installed hydro capacity

10,9 GW

3,7 GW

(34%)

7,2 GW

(66%)

MOROCCO RE STRATEGY

Thermal Total installed capacity

In 2019, Morocco becomes net exporter of electricity to Spain

By 2020

42% of RE mix

By 2030

52% of RE mix

Morocco RE strategy has led to significant achievements

By 2020

42% of RE mix

By 2030

52% of RE mix

Renewables

9Source: * IEA


Green hydrogen

production cost

expected to be

40% less in North

Africa than in

Europe

Morocco, long term partner of Europe, acting as green hydrogen production platform

Long term domestic production costs of hydrogen*

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Partnerships are key to achieve competitive green hydrogen production in Morocco

FIRST INITIATIVES

Partnership with Germany to developp first green hydrogen

project

Partnership between Fraunhofer, IRESEN & OCP (importer of 1MTon

of ammonia per year)

Extensive H2 developmentFirst H2 commercial projets

LCOHLevel

Evolution

green hydrogen in morocco - dii desertenergy

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