French major TotalEnergies has teamed with renewable energy-focused EREN Group and the funding arms of Danish companies A P Moller and Copenhagen Infrastructure Partners on a new green fuels production venture in Morocco.

The companies have formed TE H2, which will comprise TotalEnergies, EREN, CIP’s Energy Transition Fund and AP Moller Capital’s Emerging Markets Infrastructure Fund, to kick off pre-front-end engineering and design studies.

TE H2 plans to build 1 GW of onshore solar and wind power production on a site located near the Atlantic coast in the Guelmim-Oued Noun region of Morocco.

The Chbika project aims to power the production of green hydrogen through the electrolysis of desalinated seawater and its transformation into 200,000 tonnes per year of green ammonia for the European market.

“This project will constitute the first phase of a development programme aimed at creating a world-scale green hydrogen production hub,” TotalEnergies said.

The major said TE H2 and CIP will be responsible for the development of renewable energy production including solar, wind, green hydrogen and its derivatives. AP Moller Capital will develop the port and associated infrastructure.

It said this preliminary contract is a “first in Morocco” and will highlight the country’s “exceptional renewable potential”.

TotalEnergies chairman and chief executive Patrick Pouyanne said: “This agreement is part of our strategy to develop production in countries with the most competitive renewable resources, such as Morocco.

“Thanks to its geographical proximity and the quality of its wind and solar resources, Morocco indeed has the best assets to become a major partner for Europe in achieving the goals of the Green Deal, and TotalEnergies aims to contribute to this ambition.”

TE H2 chief executive David Corchia said: “Our consortium is strong, our overall Moroccan plan is very ambitious … The Kingdom has the potential to supply affordable and clean energy to Europe while serving its own decarbonised industrial development.”

AP Moller Capital chief executive Kim Fejfer said: “Developing competitive transport infrastructure is part of what we do and a fundamental part of green hydrogen value chains.”