RABAT, July 28 – The United States has provided its first federal support for a renewable energy project in Western Sahara, awarding $5.7 million to an international consortium developing a proposed $4.5 billion green ammonia facility in the disputed Moroccan-controlled territory.
The funding was awarded by the U.S. Trade and Development Agency (USTDA) to ORNX, a consortium comprising US-based Ortus Climate Mitigation LLC and Acciona-Nordex Green Hydrogen, a Spanish-German joint venture. The grant will finance an early-stage feasibility study for the project, according to Bloomberg.
Although the grant represents only a small portion of the project’s overall investment, it marks a significant milestone in US support for renewable energy development in Western Sahara and reflects Washington’s continued engagement following its recognition of Morocco’s sovereignty claim over the territory in 2020.
Once completed, the facility, planned for Laayoune, is expected to produce approximately 560,000 metric tonnes of green ammonia annually, using renewable electricity generated from solar and wind resources to manufacture the low-carbon fuel and fertiliser feedstock.
The project’s Front-End Engineering Design (FEED) study will be led by KBR Inc., working alongside GE Vernova, Terabase, and Electric Hydrogen.
Western Sahara remains one of Africa’s longest-running territorial disputes. Morocco has administered most of the territory since annexing the former Spanish colony in 1975, while the United Nations continues to classify it as a non-self-governing territory. The Polisario Front, backed by Algeria, continues to campaign for the territory’s independence.
The latest US funding carries geopolitical significance beyond its financial value. It reinforces the closer relationship between Washington and Rabat that has developed since the United States recognised Morocco’s sovereignty over Western Sahara as part of a broader diplomatic agreement linked to Morocco’s normalisation of relations with Israel.
The announcement also comes amid increasing investment in Western Sahara across sectors including renewable energy, ports and tourism infrastructure, as Morocco continues efforts to integrate the territory into its broader economic development strategy.
The proposed project aligns with Morocco’s ambition to become a global producer of green hydrogen and green ammonia, leveraging its abundant renewable energy resources to position itself as a future supplier of low-carbon fuels to international markets, particularly Europe.
