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

The U.S. Trade and Development Agency funds early-stage studies for an ammonia production project in Western Sahara, marking its first private-sector funding in the disputed region. The project aims to produce 560,000 metric tons of ammonia annually using renewable energy-generated hydrogen.

The U.S. Trade and Development Agency announced its decision to fund preliminary studies for an ammonia production project in Western Sahara, a significant step as this marks the first U.S. government financing for a private venture in the contested area.

The long-standing conflict in the region involves Morocco, which claims the area, and the Polisario Front, supported by Algeria, pushing for an independent state. After the U.S. recognized Moroccan sovereignty over Western Sahara in 2020, it encouraged American investments in the region.

The agreement was finalized in Laayoune with project developer ORNX, set to fund a $5.7 million initial engineering study. The initiative aims to produce around 560,000 metric tons of ammonia each year by utilizing hydrogen generated from renewable resources, as stated by ORNX. The announcement followed Morocco's decision to name a new highway in Western Sahara after U.S. President Donald Trump, highlighting the growing U.S.-Morocco relationship.