French energy conglomerate Engie intends to divest its stake in Morocco’s largest coal-fired power plant, Safi, as part of its broader transition towards renewable energy and sustainable infrastructure.
Loic Jaegert-Huber, Engie’s North Africa director, announced a Moroccan-French business forum in Rabat last Friday. Engie plans to offload its 33% interest in the Safi coal plant by January 2027, aiming to eliminate coal from its portfolio entirely.
“We are committed to divest from SAFIEC,” the director said.
Engie has garnered interest from various parties for its stake in the 1,386-megawatt Safi coal facility, though specifics about these potential buyers remain undisclosed. The company is considering transforming the plant with alternative, more sustainable energy sources, including green ammonia, to decrease carbon emissions significantly.
Engie’s Renewable Ventures in Morocco
In addition to phasing out coal operations, Engie plays a crucial role in Morocco’s renewable energy sector. The company operates the country’s largest wind farm in Tarfaya, with a capacity of 300 megawatts, and collaborates with Nareva, a Moroccan energy firm, on a pioneering wind-powered desalination project in Dakhla, Western Sahara.
This innovative desalination plant, set to commence alongside the wind park next year, will dedicate 90% of its output to irrigation, with the remainder providing drinking water to Dakhla’s residents. This project highlights Engie’s commitment to integrating sustainable energy solutions with vital water resource management.
Supporting Major Infrastructure Projects
Engie’s investment in Morocco extends to ambitious infrastructure endeavors, such as a proposed 3-gigawatt electric cable linking Dakhla in Western Sahara to Casablanca. French Finance Minister Bruno Le Maire, speaking at the forum, confirmed France’s support for the project, which is estimated to cost around $3 billion.
The political situation in Western Sahara, contested by Morocco and the Polisario Front backed by Algeria, adds complexity to Engie’s investments in the area. Despite these challenges, Engie remains focused on contributing positively to Morocco’s energy landscape.
Engie’s strategic exit from coal in Morocco reflects a wider trend among global energy firms transitioning towards greener, more sustainable energy sources.
This move is in line with international efforts to curb carbon emissions and fight climate change. Engie’s shift not only demonstrates its leadership in renewable energy but also underscores the company’s commitment to a sustainable future.
Image Source: Seja Trainee
