Morocco Aims to Become Key Player in Green Hydrogen

A picture taken on February 4, 2016 shows an aerial view of the solar mirrors at the Noor 1 Concentrated Solar Power (CSP) plant, some 20km (12.5 miles) outside the central Moroccan town of Ouarzazate, ahead of its inauguration. (AFP)
A picture taken on February 4, 2016 shows an aerial view of the solar mirrors at the Noor 1 Concentrated Solar Power (CSP) plant, some 20km (12.5 miles) outside the central Moroccan town of Ouarzazate, ahead of its inauguration. (AFP)
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Morocco Aims to Become Key Player in Green Hydrogen

A picture taken on February 4, 2016 shows an aerial view of the solar mirrors at the Noor 1 Concentrated Solar Power (CSP) plant, some 20km (12.5 miles) outside the central Moroccan town of Ouarzazate, ahead of its inauguration. (AFP)
A picture taken on February 4, 2016 shows an aerial view of the solar mirrors at the Noor 1 Concentrated Solar Power (CSP) plant, some 20km (12.5 miles) outside the central Moroccan town of Ouarzazate, ahead of its inauguration. (AFP)

Morocco has voiced ambitious plans to become North Africa's top player in the emerging "green hydrogen" sector, with plans to export the clean-burning fuel to Europe.

Hydrogen is seen as a clean energy source that can help the world phase out fossil fuels and reduce atmospheric carbon emissions in the battle to slow global warming.

Morocco, which already runs large solar power plants, also hopes to harness green hydrogen -- the kind made without burning fossil fuels -- for its sizeable fertilizer sector.

Around 1.5 million acres (6,000 square kilometers) of public land -- nearly the size of Kuwait -- have been set aside for green hydrogen and ammonia plants, the economy ministry says.

King Mohammed VI has hailed a national green hydrogen plan dubbed l'Offre Maroc (the Moroccan Offer) and called for its "rapid and qualitative implementation".

Speaking in July, before the country's earthquake disaster, he said Morocco must take advantage of "the projects supported by international investors in this promising sector".

Local media have reported about investment plans by Australian, British, French, German and Indian companies.

Fertilizer sales

Hydrogen can be extracted from water by passing a strong electrical current through it.

This separates the hydrogen from the oxygen, a process called electrolysis.

If the power used is clean -- such as solar or wind -- the fuel is called "green hydrogen", which is itself emission-free when burnt.

But there are problems: hydrogen is highly explosive and hard to store and transport. This has set back hydrogen fuel cell cars in the race against electric vehicles using lithium-ion batteries.

However, experts say green hydrogen also has a big role to play in decarbonizing energy-intensive industries that cannot easily be electrified such as steel, cement and chemicals.

Powering blast furnaces with hydrogen, for example, offers the promise of making "green steel".

Hydrogen can also be converted into ammonia, to store the energy or as a major input in synthetic fertilizers.

Morocco is already a major player in the global fertilizer market, thanks mainly to its immense phosphate reserves.

It profited after fertilizer shortages sparked by Russia's invasion of Ukraine sent prices up to 1,000 euros ($1,060) per ton.

Morocco's state Phosphate Office has announced plans to quickly produce a million tons of "green ammonia" from green hydrogen and triple the amount by 2032.

Solar power

Analysts caution that Morocco still has some way to go with its ambitious green fertilizer plans.

The sector is "embryonic and the large global projects will not see the light of day until three to five years from now", said Samir Rachidi, director of the Moroccan research institute IRESEN.

Morocco's advantage is that it has already bet heavily on clean energy over the past 15 years.

Solar, wind and other clean energy make up 38 percent of production, and the goal is to reach 52 percent by 2030.

For now green hydrogen is more expensive than the highly polluting "brown hydrogen" made using coal or "grey hydrogen" produced from natural gas.

The goal is to keep green hydrogen production below $1-$2 per kilogram, Ahmed Reda Chami, president of the Economic, Social and Environmental Counsel, told the weekly La Vie Eco.

Rachidi of IRESEN said water-scarce Morocco must also step up the desalination of seawater for the process.

It must build "an industrial value chain which begins with seawater desalinization plants for electrolysis, electricity storage, to transportation and hydrogen marketing", he said.

Already hit by droughts that threaten its farm sector, Morocco has announced plans to add seven desalinization plants to its 12 existing facilities.

Regional contest

Morocco is competing on green hydrogen with other regional countries from Egypt to Mauritania.

Business consultants Deloitte have predicted that North Africa will be the world's largest green hydrogen-exporting region by 2050, reshuffling the global energy cards.

Algeria, a major fossil fuel exporter, can capitalize on "one of the most important potentials in the world" in terms of solar and wind energy and gas pipeline infrastructure, said Rabah Sellami, director of its Renewable Energies Commission.

Currently, Algeria produces only three percent of its electricity through renewables, but is investing heavily to boost capacity.

Algeria has numerous desalinization plants whose capacity is set to more than double to two billion cubic meters (about 70 billion cubic feet) in 2030.

Its roadmap for green hydrogen targets "production of one million tons for export to the European market" and 250,000 tons for domestic consumption, said Sellami.

Tunisia also wants to enter the fray, provided it can build up its renewables production, said its energy ministry's general director Belhassen Chiboub.

It hopes to grow clean power output from three percent now to 35 percent by 2030.

If it meets that target, Chiboub predicted, "it will be able to export between 5.5 and six million tons of green hydrogen to Europe by 2050".



IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.


Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
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Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)

Copper dropped on Friday and was set for its biggest weekly drop in London since March, as a rout in technology stocks battered markets.

Benchmark three-month copper on the London Metal Exchange was down 1.3% at $13,663 a metric ton by 0700 GMT. That placed it on track to fall 3.44% in the week, Reuters said.

The most-traded copper contract on the Shanghai Futures Exchange fell 1.08% to 106,830 yuan ($16,018.17) a ton.

The weakness reflects worries over AI investment, ‌with copper increasingly ‌influenced by "sentiment towards data center expansion," said ‌Craig ⁠Lang, principal analyst ⁠at CRU.

Technology shares were battered after Democratic wins in the US midterms fueled concerns that new regulatory oversight could cap the AI buildout.

On the other hand, supply constraints cushioned copper's decline.

"I would be cautious about calling this a sustained correction, given ongoing mine supply challenges and exceptionally tight ⁠metal availability outside the US," Lang said.

Copper stocks ‌in SHFE-monitored warehouses <CU-STX-SGH> fell by ‌over 24% this week to just 33,848 tons — the lowest ‌in almost three years. The closely watched Yangshan copper ‌premium <SMM-CUYP-CN>, a gauge of appetite for imports into key consumer China, increased to $210 a ton on Thursday, matching its record high.

Smelters in the country are facing a double squeeze of negative treatment ‌charges and lower sulfuric acid prices.

Meanwhile, warehouse inventories outside the US have been drawn ⁠down as ⁠material was pulled into the country ahead of a potential tariff on imports of refined copper.

"These physical constraints should provide some support against weaker investor sentiment," Lang said.

Among LME metals, aluminium lost 0.54%, zinc lost 1.42%, lead lost 0.45%, nickel dipped 0.23% and tin gained 0.83%.

On the SHFE, aluminium nudged down only 0.04%, zinc lost 1.35%, lead was little changed, down only 0.03%, nickel rose 2.14% and tin dropped 3.45%.

SHFE inventories were down across the board this week, led by sharp drops in aluminium <AL-STX-SGH> and lead <PB-STX-SGH>.