Taqa Morocco accelerates on low-carbon energies

The private leader in electricity production in Morocco, which operates in Jorf Lasfar, the largest thermal complex in the MENA region through a coal-fired power plant with 6 units and a total capacity of 2,056 MW, has for some years now set its sights on renewable energies.

The stated ambition of the subsidiary of the Emirati giant Taqa is to support the Kingdom’s energy transition towards low-carbon sources with, in sight, the realization of projects in wind, photovoltaics, water, but also green hydrogen.

This major strategic shift materialized in 2023 with the creation of Taqa Morocco Green Energy (TMGE), a subsidiary responsible for managing development projects focused on renewable energies. In the same year, the group raised 6.6 billion dirhams from Moroccan banks, with a maturity of 19 years, through the «JLEC 5&6» subsidiary.

Half of this amount, i.e., 3.3 billion dirhams, was used to re-profile the debt of the «JLEC 5&6» subsidiary, while the other half was allocated to financing the group’s development, particularly in green energies. Taqa Morocco has set ambitious objectives in this direction, setting the bar very high: by 2030, the group wants to develop 1,000 MW of renewable capacities in Morocco.

This diversification strategy towards low-carbon energies is beginning to bear fruit. In wind power first, 2025 should see the launch by Taqa Morocco of the first phase of the Boujmil project in northern Morocco.

It will have an initial capacity of 100 MW, with a planned extension to 144 MW. The company is also developing a 300 MW wind farm in Tarfaya, for an investment cost of 4.5 billion dirhams. It is also part of a consortium with the Italian Enel Green Power, pre-qualified for the 400 MW Noor Midelt II plant.

Taqa Morocco is also involved in photovoltaics. The group has already been awarded 5 lots for the development of 96 MW of solar power on the Sidi Bennour and Kelaâ des Sraghna sites, as part of the call for projects of the MASEN Noor PV II solar program.

Heading for Green Hydrogen and Desalination

But it is in the green hydrogen sector that the operator has made a major breakthrough. Taqa Morocco is indeed part of the first list of projects validated, on March 6, by the Steering Committee of the «Morocco Offer»for green hydrogen.

This committee, chaired by the Head of Government, has selected 6 projects for an amount of 319 billion dirhams, including the one led by Taqa Morocco, in consortium with the Spanish company Moeve, for the production of green ammonia and industrial fuel.

Moeve is none other than the new name of the second largest Spanish oil company Cepsa, owned by the Abu Dhabi fund Mubadala and the American private equity firm Carlyle Group. This change of name, which occurred last October, reflects the company’s focus on low-carbon activities, with a focus on green hydrogen, biofuels, and electric mobility.

Moeve has, in fact, already launched a 2-gigawatt green hydrogen plant project in Andalusia, and what will be, according to the company, the largest biofuel plant in Southern Europe. It is this expertise, combined with that of the Emirati parent company Taqa, that will be at work for the Dakhla ammonia and industrial fuel project.

After the green light from the steering committee, the focus is now on studies. «Discussions with the bodies designated by the steering committee will be initiated to finalize the preliminary contracts and mobilize the land base necessary for the launch of feasibility studies»,the operator emphasizes in its latest financial press release. The amount allocated to this project has not been disclosed.

In early 2024, an Emirati official from Taqa told Bloomberg that it planned to invest nearly 100 billion dirhams over a 15-year period to build a renewable energy plant with a capacity of 6,000 MW dedicated to the production of green hydrogen in southern Morocco.

A 70,000-hectare site had been secured for this purpose near Dakhla. This project is therefore starting today with an area of 30,000 hectares, under the conditions specified by the «Morocco Offer».

Taqa Morocco also has great ambitions in seawater desalination and is positioning itself on the opportunities offered by the government’s water strategy, which has set itself the objective of producing 1.7 billion cubic meters of desalinated water per year by 2030.

The group has its sights set on the numerous seawater desalination plants that the Moroccan State should launch, particularly in the Oriental, the north, and the south of the Kingdom. For this, it will be able to rely on a key argument to win contracts: its parent company, Taqa, is one of the world leaders in this industry.

In particular, it has developed the Al Taweelah reverse osmosis desalination plant, the largest plant of its kind in the world, producing 909,200 cubic meters of water per day.

An Increased Dividend for 2025

Taqa Morocco has published financial results that are generally stable at the end of the 2024 financial year. Turnover is down to 10.87 billion dirhams, compared to 13.19 billion dirhams in 2023, following the 13% decline in the international price of coal.

However, despite this drop in revenue, the operating margin rate improved by 3.7 points, reaching 24.2%. The group attributes this performance to «the continuous effort in operational excellence».

This improvement in the operating margin, coupled with that of the financial result, has had a positive impact on the group’s profitability: the group’s share of net income stands at 1.05 billion dirhams, an increase of 1.5% year-on-year.

On the strength of these results, the board of Taqa Morocco has made a gesture for its shareholders, proposing the distribution of a dividend of 37 dirhams per share, an increase of 6% compared to 2023.