Mauritania has unveiled ambitious plans for large-scale projects aimed at producing 12.5 million tons of green hydrogen annually by 2035 and capturing up to 1.5% of the global hydrogen market and up to 1% of the global green steel market by 2050.
EU Commission President Ursula von der Leyen highlighted the importance of green hydrogen in this process during a meeting with President Ghazouani earlier this year, stating, “The technology works, but the production of green steel requires an essential input: green hydrogen. That’s why hydrogen is crucial for Mauritania and Europe, aligning our interests.”
To achieve these objectives, the country is focusing on large-scale projects, such as Danish developer GreenGo Energy’s 35 GW Megaton Moon, CWP’s 16-20 GW Aman or TotalEnergies and Chariot’s 10 GW Project Nour. Another 10 GW facility is being developed jointly by Egyptian utility company Infinity and Conjuncta.
With significant potential for solar and wind energy, Mauritania is poised to become an attractive green hydrogen market, boasting development potential of approximately 457.9 GW for solar and 47 GW for wind projects.
Its proximity to Europe offers export advantages, while also providing opportunities to develop local industries and enhance infrastructure.
Development of a Local Green Steel Industry
Mauritania, Africa’s second-largest iron producer, exported 13 million tons of iron ore in 2022, with the government aiming to triple this figure by 2030.
However, most iron is exported as raw ore. Mauritania has not fully exploited the potential benefits of manufacturing and exporting steel products due to the high cost of production and the scarcity of energy sources.
With the advent of clean energy, processing it into green steel domestically could catalyze the development of a local manufacturing industry. This could generate revenue domestically and provide an export product to the European Union (EU).
Several green steel projects are currently underway in Mauritania, and Von der Leyen’s comments are likely to accelerate investment in this sector. In December 2023, the Mauritanian Minister of Energy, Petroleum and Mines Nani O.
Chrouga signed a MoU with the U.S. Department of Energy Deputy Secretary of Energy, David Turk, to assess Mauritania’s capacity for carbon-free steel production while leveraging American technology, particularly from the National Renewable Energy Laboratory.
In 2022, the state-owned Société Nationale Industrielle et Minière (SNIM) and steel manufacturer ArcelorMittal signed an MoU to jointly evaluate the development of iron ore pelletizing and direct reduced iron plants in Mauritania.
SNIM would provide the iron ore feedstock, with the project aiming to produce 2.5 million tons of green steel annually.
However, developing a green steel industry demands investment, particularly in infrastructure. Processing plants for iron extraction and steel manufacturing require significant power, necessitating connections to ports for export. Potential off-takers could invest in these endeavors.
Von der Leyen suggested that the European Union‘s €300 billion Global Gateway grant to Mauritania will finance new road infrastructure between Nouakchott and Nouadhibou, facilitating the development of the green hydrogen sector.
The fund may also support the construction of a new high-voltage power transmission line.
