Moroccan steel industry explores green hydrogen potential at Jorf Lasfar for decarbonization
A technical study by the United Nations Industrial Development Organization, conducted for the Green Climate Fund, has for the first time quantified the parameters for a green hydrogen-based direct reduced iron project at Sonasid's industrial complex in Jorf Lasfar, Morocco. This initiative aims to address the Moroccan steel industry's reliance on imported scrap metal, which is becoming scarce as major trading partners prioritize their own climate goals. The study evaluates the project's cost, requirements for electrolyzers, water, and renewable energy, and its carbon profitability threshold. The Moroccan steel industry, a key component of national infrastructure, currently produces raw steel using electric arc furnaces with imported scrap. The report highlights that while the green hydrogen sector is technically ready, certification, water supply, and inter-ministerial coordination are crucial hurdles. Jorf Lasfar was selected for its industrial maturity, deep-water port, high-voltage electrical grid connections, access to seawater for desalination, and potential for shared utilities with neighboring industrial groups like OCP. Sonasid, an existing steel producer at the site with an 800,000-ton per year electric arc furnace, was chosen as the industrial partner. The study focused on the vertical shaft furnace technology due to its commercial maturity, while also considering the more modular electric rotary furnace for future phases. The direct reduced iron plant is sized at