US Backs ORNX's Green Ammonia Project in Western Sahara

The US Trade and Development Agency signed a $5.7 million grant with ORNX on July 28, 2026. The funding supports early engineering studies for a green ammonia plant in Laayoune. It marks the first US federal financing for a private-sector project in Western Sahara. The facility is designed to produce 560,000 metric tons of ammonia annually.

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What Did the US Just Fund in Western Sahara?

The US Trade and Development Agency awarded a $5.7 million grant to ORNX for early engineering work. The agreement funds a pre-FEED study for the planned Laayoune ammonia facility.

USTDA Deputy Director Thomas R. Hardy signed the agreement in Laayoune on July 28, 2026. ORNX chief executive Peter A. Gish signed on behalf of the consortium.

US Ambassador to Morocco Duke Buchan III attended the ceremony. Regional and municipal officials from Laayoune also took part.

This is the first direct US federal funding for a private-sector project in Western Sahara. The territory is controlled by Morocco and claimed by the Polisario Front. The United States recognized Moroccan sovereignty over the region in 2020.

Inside the Laayoune Green Ammonia Blueprint

The Laayoune facility is designed to produce 560,000 metric tons of green ammonia annually once it is operational. That output would come from roughly 100,000 metric tons of green hydrogen produced on site each year.

The hydrogen would then be converted into ammonia for both domestic use and export. The design calls for more than 2 gigawatts of combined wind and solar generation capacity.

That power would run 900 megawatts of electrolysers dedicated to splitting water into hydrogen. A battery storage system would help balance the variable output from wind and solar.

A seawater desalination plant would supply water for electrolysis and general plant operations. The scale mirrors a broader buildout already underway among 14 major US green hydrogen projects expected online by 2030. It is part of a wider wave of blue and green ammonia investment across North America.

A Consortium Built From Three Countries

ORNX combines three international partners under one green ammonia platform. Ortus Climate Mitigation, a US renewable energy developer, holds the American stake in the consortium.

Acciona of Spain and Nordex of Germany operate together as the Acciona-Nordex Green Hydrogen joint venture. Together the three firms make up ORNX.

KBR is leading the pre-FEED engineering study announced this week. GE Vernova, Electric Hydrogen, and Terabase Energy are supporting the technical work.

ORNX CEO Peter A. Gish says the grant moves the project a step closer to a final investment decision.

Why Does This Funding Matter for Global Ammonia Demand?

Demand for cleaner ammonia is climbing as shipping and power sectors look for lower-carbon fuel options. The International Energy Agency projects nearly 8 million metric tons of near-zero-emission ammonia production capacity will come online globally by 2030.

USTDA Deputy Director Thomas R. Hardy frames the grant as part of a broader strategic priority for the region.

US developers are racing to meet part of that demand at home. The Blue Point Complex in Louisiana is backed by JERA and CF Industries. It is set to produce 1.4 million metric tons of low-carbon ammonia annually starting in 2029.

CF Industries has taken a different technical path than ORNX. The company canceled its own electrolyzer project earlier this year, choosing carbon capture over electrolysis for its Louisiana operations.

The contrast highlights two competing strategies for cutting ammonia's carbon footprint. ORNX is betting on renewable-powered electrolysis, while CF Industries is scaling carbon capture at its existing US plants.

The US blue ammonia market is projected to grow from $37 million in 2025 to $1.23 billion by 2035. Morocco's state-owned phosphate producer, OCP Group, plans to use Laayoune's output as feedstock for low-carbon fertilizer.

Project	Location	Annual Capacity	Investment	Timeline
ORNX Laayoune Project	Laayoune, Western Sahara	560,000 metric tons ammonia	$4.5 billion (full project)	Pre-FEED study underway, 2026
Blue Point Complex	Ascension Parish, Louisiana	1.4 million metric tons ammonia	$4 billion	Online by 2029

What Happens Before Construction Begins?

ORNX still faces several stages before construction can start in Laayoune. The pre-FEED study is the first formal step toward a final investment decision.

Engineering work is expected to begin later in 2026. KBR and its partners will assess technical, environmental, and commercial viability during this phase.

A full front-end engineering and design study, known as FEED, would follow pre-FEED. Only after FEED would ORNX and its partners reach a final investment decision on construction.

The Laayoune project is one of three ORNX has proposed in southern Morocco. Additional sites are planned in Boujdour and Dakhla, both chosen for strong wind and solar resources.

Federal support for early-stage hydrogen work is not unique to Western Sahara. Alberta recently committed nearly $60 million to 28 hydrogen projects across the province.

Ammonia's role as a shipping fuel is also drawing investment elsewhere. Green ammonia and green methanol are both being tested as lower-carbon alternatives to conventional marine fuel.

Laayoune now sits at the center of a much bigger bet on Morocco's renewable ammonia ambitions. Whether the project reaches construction will depend on the studies USTDA just helped fund.

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