Significant Investment for Ammonia Production in Laâyoune
On July 28, 2026, the U.S. Trade and Development Agency (USTDA) signed a crucial agreement with ORNX to fund a pre-engineering design study (Pre-FEED) aimed at establishing a large-scale ammonia production facility in Laâyoune, Morocco, utilizing American technology. Once operational, this facility is expected to produce up to 560,000 tons of ammonia annually. This initiative underscores Morocco's commitment to prioritizing ammonia production in the region, as noted by Thomas R. Hardy, USTDA's Deputy Director, who emphasized the importance of U.S. collaboration in showcasing American expertise in infrastructure development for future generations.
Collaboration and Technological Advancements
ORNX has chosen a consortium led by Kellogg Brown & Root LLC (KBR), which also includes GE Vernova, Electric Hydrogen (EH2), and Terabase, to conduct the study. This comprehensive evaluation will assess the innovative electrolyzer technology developed by EH2, explore various energy supply options, determine the optimal size and configuration of the industrial facilities, and provide detailed financial projections along with economic models. The project not only represents a significant economic development opportunity for southern Morocco but also reinforces the Kingdom's role as a reliable partner in meeting global industrial demand. Peter A. Gish, CEO of ORNX, expressed gratitude to USTDA for their support during this pivotal moment, highlighting the strategic alliance between Morocco and the United States. He mentioned the importance of this funding in advancing the technical and commercial development of the ammonia initiative as they move towards the FEED phase and the final investment decision.
U.S. Ambassador to Morocco, Duke Buchan III, remarked on the strategic importance of this grant, which emphasizes U.S. investments in the Moroccan Sahara. He noted that American companies continue to demonstrate unparalleled leadership and technology in energy development and production, which is vital for driving global economies, including Morocco's. By fostering industrial projects like this one, new opportunities for U.S. exports are created, generating sustainable jobs both in the United States and Morocco. The USTDA plays a critical role in supporting the preliminary phases of infrastructure development in emerging markets, helping to advance shared strategic priorities between the U.S. and its international partners while facilitating the deployment of reliable American solutions.
As reported by es.le360.ma.
