An agreement was signed on Tuesday, July 28, between the U.S. Trade and Development Agency (USTDA) and ORNX. This agreement provides funding for a Pre-Front-End Engineering Design (Pre-FEED) study for a large-scale ammonia production plant in Laayoune. The facility, which will utilize U.S. technology, is projected to produce up to 560,000 tonnes of ammonia annually. This marks the first U.S. government funding for a private-sector project in Morocco’s Sahara.
The signing ceremony was attended by U.S. Ambassador to Morocco, Duke Buchan III.
“I am honored to be here to announce the first U.S. government funding for the private sector in Morocco’s Sahara,” Buchan stated, commending the bilateral relationship as “stronger than ever thanks to the vision and leadership of President Trump and King Mohammed VI.”
The ambassador reiterated Washington’s support for Morocco’s sovereignty over the Sahara.
“The United States stands firmly with Morocco, including through our unwavering support for Morocco’s autonomy proposal as the only basis for a just and lasting solution,” he affirmed.
According to Buchan, “the time has come to reach a resolution that will unlock even greater stability and prosperity for this region and the African continent.” He added, “The status quo cannot continue.”
“Our partnership will bring together the best of Morocco and the United States: Morocco’s beauty, strong work ethic, and abundant natural resources combined with American innovation. This partnership will bring prosperity to Morocco, the United States, and the people of Morocco’s Sahara. Together, we will invest in a brighter future for both our nations,” the ambassador concluded.
USTDA Deputy Director Thomas R. Hardy outlined the agency’s role in the project.
“We provide project preparation grants to accelerate infrastructure development and attract financing for the implementation of critical infrastructure projects,” he explained.
“Under the agreement we signed this morning with ORNX, USTDA is funding the engineering study that will address the most critical technical questions at this stage of the project’s development,” Hardy added.
He noted that the study “will be carried out through a partnership between American and Moroccan companies that will advance a project capable of becoming a pillar of industrial development in Morocco’s Sahara, while strengthening Morocco’s growing role as a regional energy and industrial hub.”
“Today’s signing is an important milestone, and USTDA looks forward to continuing its work across the country, and particularly here in Laayoune, to support broad-based economic growth in Morocco and strengthen the bilateral relationship between the United States and Morocco,” Hardy said.
Read also : US backs Green Ammonia project in Laayoune
U.S. consortium led by KBR
ORNX has selected a consortium of U.S. companies to conduct the study, led by global engineering and technology firm Kellogg Brown & Root LLC (KBR), alongside GE Vernova, Electric Hydrogen (EH2), and Terabase.
The scope of work will include an assessment of EH2’s electrolyzer technology, an evaluation of various energy supply options, and the identification of the optimal size and configuration for the industrial facilities. It will also encompass detailed financial projections and business models.
Ammonia is one of the world’s most critical industrial chemicals, essential for food production as a key component in fertilizers, and widely used in refrigeration, water treatment, and manufacturing.
For Morocco, this project represents a significant economic development opportunity for the Southern Provinces, while reinforcing the Kingdom’s role as a reliable partner in meeting growing global industrial demand.
