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U.S. Paves Path for Ammonia Production in Western Sahara

The $5.7 million grant will finance preliminary engineering for a project expected to produce 560,000 metric tons of ammonia a year.

  • On Tuesday, the U.S. Trade and Development Agency agreed to fund a $5.7 million engineering study for an ammonia production project in Western Sahara, marking the first U.S. government financing for a private-sector venture in the disputed territory.
  • The initiative follows the 2020 U.S. decision to recognize Moroccan sovereignty over Western Sahara, a policy shift that encouraged American investments despite long-standing territorial claims from the Algeria-backed Polisario Front.
  • Project developer ORNX—a joint venture featuring the Spanish firm Acciona, Nordex of Germany, and Ortus Power Resources Morocco—will utilize electrolyzer technology from the Massachusetts firm Electric Hydrogen to produce 560,000 tons of ammonia annually.
  • At the Laayoune signing ceremony, U.S. Ambassador Duke Buchan III exclaimed, "America is in the Moroccan Sahara," days after Morocco named a $1 billion highway in the region after President Donald Trump.
  • This project is part of a broader 2025 initiative where Morocco tapped several consortia to develop six green hydrogen projects across three southern regions, focusing primarily on ammonia deployment to meet growing global industrial demand.
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By Kamel M. – The funding by the U.S. Trade and Development Agency (USTDA) of a pre-engineering study for a massive ammonia plant in Laayoune marks a turning point in the United States' involvement in occupied Western Sahara. Presented as the first direct financial support from the U.S. government to the private sector in what Rabat falsely calls the "Southern Provinces," this initiative goes far beyond a simple industrial investment. It is part…

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Reuters broke the news in London, United Kingdom on Tuesday, July 28, 2026.
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