The US government is intensifying its efforts to bolster strategic projects in Morocco, focusing on key sectors such as energy, critical minerals, digital infrastructure, and transportation. This initiative comes at a time when the Kingdom is actively seeking to attract investments and develop projects in areas that are vital for both its economic growth and supply security. Gretchen Krantz-Evans, the regional director for the Middle East and North Africa at the US Trade and Development Agency (USTDA), stated in an interview with Asharq Bloomberg that these four sectors represent priorities for future collaboration with Morocco.
Krantz-Evans elaborated on the agency's focus, highlighting the importance of diversifying global supply chains for critical minerals, supporting energy infrastructure, deploying reliable technologies and artificial intelligence in digital infrastructure, and developing secure and efficient transportation networks. The USTDA plays a pivotal role in supporting the development of essential infrastructure projects in emerging markets by financing studies and preliminary technical work that accelerates project development. This assistance helps attract the necessary funding for implementation. Since its inception in Morocco, the agency has provided approximately $25 million in grants to various projects and partners within the Kingdom.
Natural Gas Initiatives
Liquefied natural gas (LNG) and its associated infrastructure are emerging as significant areas for potential collaboration. The agency is set to host a Moroccan delegation in the United States this September to explore LNG infrastructure projects in the Kingdom, particularly in the production and transportation phases. This comes as the first LNG project in Morocco, owned by the mining company Managem, gears up for commercial production this year. Additionally, Morocco is in the early stages of studies for the Africa Atlantic Gas Pipeline project, which aims to connect Nigeria to Morocco, alongside infrastructure developments related to the Nador West Med Port, all while progressing in renewable energy and green hydrogen projects.
Krantz-Evans noted that LNG is one of the agency's priorities within the energy sector, mentioning that the agency previously funded feasibility studies related to the Nador Port in 2015 and 2018, which included a fuel blending terminal and a facility for regasifying LNG.
Strategic Critical Minerals Sector
In addition to energy, the USTDA has identified critical minerals as a strategic sector for collaboration with Morocco, particularly as the United States aims to diversify global supply chains for these minerals and reduce reliance on limited sources. Morocco boasts a vast mineral and industrial base, primarily centered around phosphates and their derivatives. Moroccan mining companies are actively expanding their operations into other minerals that can be integrated into battery production, technology, and clean energy sectors.
Agency officials have engaged in discussions with the National Office of Hydrocarbons and Mines, which is responsible for granting licenses for mineral and oil exploration, as well as with the president of the Managem Group, which owns precious mineral extraction projects in Morocco and several African nations, making it the largest company by market capitalization on the Moroccan stock exchange.
In July, the agency announced a grant of $5.7 million for preliminary studies of a project aimed at producing over half a million tons of ammonia annually in southern Morocco, overseen by the American company ORNX as part of an international consortium. The agency expects this grant to attract billions of dollars in financing, as Krantz-Evans explained that the agency's role extends beyond funding studies; it aims to open doors for international financing institutions and investors to provide direct funding or investment capital necessary for project implementation. The ORNX project aims to produce around 560,000 tons of green ammonia annually, with initial investments estimated at about $4.5 billion, making it one of the agency's key supported projects in Morocco.
The USTDA recognizes Morocco’s strategic location and trade relations as attractive factors for American companies, especially considering its role as a gateway to African markets. Krantz-Evans pointed out that the US-Morocco Free Trade Agreement, along with Morocco’s status as a gateway to Africa, are among the reasons American companies cite when seeking opportunities in the Kingdom.
As reported by asharqbusiness.com.
