Moroccan electricity and water utility ONEE signed on Tuesday a deal with renewable energy companies Nareva and GE Vernova to conduct a feasibility study to replace fuel with green hydrogen to operate a 99 megawatt power plant.
The plant is located in Laayoune, the largest city in Western Sahara, a territory Morocco considers its own but where the Algeria-backed Polisario front seeks to establish its own state.
"GE Vernova will help Laayoune power plant deliver electricity generated using 100% green hydrogen produced at Nareva's Laayoune wind farm to support Morocco's expansion of renewable installed capacity from its current share of 40% to 52% by 2030," the three companies said in a joint statement.
The Moroccan government has for months been preparing its green hydrogen strategy to attract investors, as it seeks to capitalise on abundant wind and sun.
In terms of actual production, about 70% of Morocco's electricity is generated from coal, with renewable energy representing 20% last year, according to official figures.
GE Vernova is an offshoot of General Electric, while Nareva is part of the Moroccan royal family's holding company Al Mada.
The study will last for two years. The financial terms of the deal were not disclosed.
