## 9 Green Hydrogen and Ammonia: A Key Investment in the Green Energy Transition
### Markets and Demand
#### 9.3.3 Domestic Markets  
Green hydrogen products will need to become more competitive in order to gain traction at the national level. Several degrees of involvement will be used: (1) the government will assist businesses by arranging information exchanges and platforms that may serve as a foundation for coordinated planning of various sections of the industry; (2) assistance for R&D, demonstration facilities, and scaling up through grants, research tax credits, infrastructure investment support, and so on; (3) by encouraging industry and private heavy transport firms to employ synthetic fuels, specialized markets will be created and developed; and (4) implementing technical incentives through the imposition of long-term carbon pricing [159].  
Morocco boasts an abundance of renewable energy resources, including water, sun, biomass, and wind, which are crucial for producing clean hydrogen. With its 3500 km coastline, the country has the potential to develop impressive wind energy capacities, with wind speeds that can reach up to 10 m/s, which could potentially translate into 135 GW of wind power. Additionally, Morocco has one of the highest rates of solar insolation in the world, with between 3000-3600 h in the Moroccan Sahara. At the end of 2019, Morocco's renewable energy capacity reached 3685 MW, including 700 MW of solar energy, 1215 MW of wind power, and 1770 MW of hydroelectricity, with a goal of reaching 6000 MW before the end of 2020. The country has been aiming to be a world leader in the hydrogen sector since 2016, with hydrogen being a key part of the equation. Morocco's potential development in the hydrogen industry will lead to the production of hydrogen derivatives, such as green ammonia, which will be used by Moroccan industries such as OCP to reinforce its position as a leading international player in the fertilizer sector. In partnership with the German Corporation for International Cooperation and the German Moroccan Energy partnership (GIZ-PAREMA), Morocco has set a target of 42% of electricity supply coming from renewables by 2020, moving to 52% by 2030, with plans to add up to 11 GW of solar, wind, and hydropower capacity by 2030. Morocco has already built the Noor solar complex in Ouarzazate, which will have 582 MW of capacity. By aggregating solar and wind energy output in Morocco, a high load factor for hydrogen electrolysis can be achieved, with the potential for hydrogen to be produced in Morocco for around \(\xi\)1/kg, beating expected costs in Europe and cost-competitive with high-carbon-emitting hydrogen production via SMRwithout CCS. Wind power is a key technology with benefits for the MENA region, and the natural resources in North Africa, particularly Morocco, present a huge opportunity for the region to be a key player in the development of the hydrogen sector [160]. The outlook for green hydrogen and ammonia is highly promising, with these energy sources considered to be essential to the transition to green energy and efforts to combat climate change. The need for renewable energy sources is anticipated to increase quickly as the globe transitions to a low-carbon economy, and green hydrogen and ammonia are seen as key enablers of this transition. The outlook for green hydrogen and ammonia is highly promising, with the potential for significant growth, innovation, and impact in the context of the green energy transition and climate change mitigation. While there are still challenges and barriers to widespread adoption, the commitment and investment by governments, companies, and researchers around the world suggests that green hydrogen and ammonia will be essential in the transition to a future with zero-carbon emissions.