Sahamco Holding BV has completed the Inside Battery Limits (ISBL) Pre-FEED studies for the first phase of its proposed green hydrogen and renewable ammonia project in Dakhla, with the developer targeting a Final Investment Decision (FID) in the third quarter of 2027.
The project, which has an estimated investment value of approximately $25 billion across its planned development phases, is targeting commercial commissioning of its first phase in 2031, according to Moroccan newspaper Le Matin, which reported the latest development on 9 November 2026.
The first phase is designed to produce approximately one million tonnes of renewable ammonia annually, with the potential to increase cumulative production capacity to between four million and five million tonnes per year through subsequent expansions.
The completion of the Pre-FEED studies represents progress in the project’s technical development. However, the investment decision has not yet been taken, and financing arrangements remain subject to further development.
Sahamco completes Pre-FEED studies ahead of 2027 investment decision
The completed engineering work covers the Inside Battery Limits (ISBL) facilities, which encompass the core processing and production installations within an industrial plant.
The milestone advances the definition of the proposed facility’s technical configuration and moves the first phase closer to the next stages of project development, including further engineering, financial structuring and commercial arrangements.
Sahamco is targeting Q3 2027 for the FID, while the commercial operation date (COD) for the first phase remains scheduled for 2031.
The revised timeline represents a shift from the expectations outlined in the project’s initial presentation in December 2024. At that time, the developer indicated that it expected to finalise the outstanding investment agreements by the first quarter of 2025 to maintain the 2031 commissioning target.
The latest update provides a more specific investment decision timeline, although the project still requires financing arrangements and the necessary commercial and industrial conditions to be secured.
$25 billion investment programme targets renewable ammonia production
The overall project investment remains estimated at approximately MAD 254 billion (around $25 billion), including nearly MAD 40 billion for the first phase.
The initial production configuration envisages an integrated system combining renewable electricity generation, water treatment, electrolysis and ammonia synthesis.
The first phase is designed around approximately one million tonnes of renewable ammonia production annually. The developer is also considering expanding the project’s cumulative annual output to between four million and five million tonnes through successive development phases.
The proposed expansion would establish a larger industrial complex centred on renewable hydrogen and its derivatives. However, Sahamco has not disclosed the number of additional production units, their individual capacities or the investment required to achieve the higher production target.
The earlier project configuration, reported by Le Matin in December 2024, included approximately 1.5 GW of alkaline electrolysis capacity. The latest update does not explicitly revise this specification, although it should be treated as an earlier design parameter rather than a newly reconfirmed equipment specification.
NetZeroWorx and INEOS feature in project development structure
Sahamco’s updated project presentation identifies NetZeroWorx as its appointed development partner for projects in the Atlantic Coastal Sahara region.
NetZeroWorx provides expertise in large-scale renewable hydrogen and derivative production projects, including water treatment, renewable energy integration, electrolysis, ammonia synthesis, engineering and financing.
The company also identifies BrainWorx as its internally developed modelling and optimisation platform for supporting the technical integration and sizing of project components.
The other organisation highlighted in the development structure is INEOS, through Ineos Electrochemical Solutions (IES).
INEOS brings experience in the chemical industry, ammonia production and alkaline water electrolysis technology. Its IES business has electrolysis equipment technology and manufacturing capabilities, with more than 1.2 GW of equivalent installed alkaline electrolysis capacity cited in the project presentation.
However, the identification of INEOS and IES in the development structure does not establish that the group has been contracted to supply electrolysers for the Dakhla project. The precise scope of its involvement and any associated commercial agreements have not been disclosed.
Project introduces local industrial integration and agricultural component
Beyond renewable hydrogen and ammonia production, the updated development programme includes plans for greater integration with Morocco’s industrial sector.
The proposed local industrial integration framework could involve technical services, industrial maintenance, specialised service providers and partnerships with Moroccan companies.
The developer has not yet identified specific domestic partners, investment allocations or the activities that will form part of this component.
An agricultural development component is also being considered, potentially covering up to 10,000 hectares within the wider project area.
The agricultural proposal introduces additional considerations regarding land use, crop selection, agricultural operators and water availability. No details have yet been disclosed about the types of crops envisaged or the arrangements for developing this component.
The overall project land area remains approximately 553,000 hectares, according to Sahamco’s project information. The company states that this land has been allocated by local authorities.
The scale of the proposed land area makes water-resource management and coordination between energy, industrial and agricultural activities important considerations as the project advances.
Export markets remain central to the renewable ammonia project
The project’s initial development strategy is oriented towards international markets, particularly Europe.
In its December 2024 presentation, the developer identified the Amsterdam-Rotterdam-Antwerp (ARA) region as a potential destination for renewable ammonia, with applications in industry and maritime transport.
The proposed production could also create opportunities for domestic industrial supply, particularly in Morocco’s fertiliser value chain, as the project expands through subsequent phases.
Renewable ammonia is produced by combining renewable hydrogen with nitrogen, generally through the Haber-Bosch synthesis process. It is an important hydrogen derivative because it can be transported and used in established industrial applications, particularly fertiliser manufacturing.
For the Dakhla project, the ability to secure competitive renewable electricity, manage water requirements, select suitable electrolysis technology and establish reliable export logistics will be important factors in determining its eventual commercial viability.
