UNIDO recommends strategies for decarbonizing Moroccan steel with green hydrogen

The report, which involved five studies, four workshops, two steering committees, and over 80 stakeholders, indicates that while the sector is technically ready, certification, water management, and inter-ministerial coordination are key challenges. Morocco's steel production, approximately 480,000 tons annually, primarily uses electric arc furnaces, which are less carbon-intensive than traditional blast furnaces but rely on a globally competitive scrap iron supply. UNIDO warns that a forced shift to gas-based reduction methods could double annual CO2 emissions from 432,000 to 864,000 tons, especially with the European Carbon Border Adjustment Mechanism CBAM in effect since 2026.

The report identifies Jorf Lasfar as the most viable location for a green hydrogen-based steel plant due to its deep-water port, high-voltage grid connections, land availability, and an operational OCP desalination unit. A proposed facility would produce 800,000 tons of direct reduced iron DRI annually, using a 246 MW electrolyzer powered by a hybrid renewable mix of 638 MW wind and 513 MW solar PV, with an estimated capital expenditure of $2.47 billion. This approach could reduce carbon intensity by about 20% compared to current scrap iron methods.

Water management is a crit