The US Trade and Development Agency (USTDA) signed a grant agreement Tuesday with project developer ORNX to finance early engineering studies for a major green ammonia project in the Moroccan Sahara, in a landmark move reflecting deepening US-Moroccan economic cooperation.
The agreement marks the first grant awarded by a US federal agency to a project in Morocco’s Southern Provinces, underscoring growing American engagement in the region and support for Morocco’s green industrial ambitions.
The USTDA grant will finance a $5.7 million pre-Front-End Engineering and Design (Pre-FEED) study for the first phase of the ORNX project, ORNX said.
The planned facility is expected to produce approximately 560,000 tons of green ammonia annually, using hydrogen generated from renewable energy sources.
Speaking at the signing ceremony in Laâyoune, Thomas Hardy, USTDA Deputy Director and Chief Operating Officer, described the agreement as a significant step in transforming the project from concept to reality.
“Today’s signing is an important step toward transforming an ambitious vision into a financeable project,” Hardy said, noting that the study would address key technical and commercial questions before future investment decisions can be made.
He emphasized Morocco’s growing role as a regional hub for investment and industrial development, saying the Kingdom’s strategic infrastructure and forward-looking policies have strengthened its position as a bridge between Africa, Europe and global markets.
“The development of the Moroccan Sahara is an important part of that vision, and today’s signing reflects the confidence that we all share about this region’s future,” Hardy said.
The project is part of Morocco’s broader Green Hydrogen Offer, an initiative aimed at positioning the country among the world’s leading producers of green hydrogen and derivative products.
ORNX was selected in 2025 as one of the investors authorized to develop projects in the Southern Provinces under the national hydrogen strategy.
For U.S Ambassador Duke Buchan, who attended the signing ceremony, the agreement carries significance beyond the project itself.
“Today is a great day. I am honored to be here to announce the first U.S. government financing for the private sector in the Moroccan Sahara,” the ambassador said.
Highlighting the growing partnership between Rabat and Washington, Buchan said the project would combine American technology and investment with Morocco’s natural resources and industrial potential.
“America is in the Moroccan Sahara,” he declared. “You will see the best of what America offers: cutting-edge technology, advanced engineering, private-sector investment into the community and jobs.”