Financial-strategic advice to Mauritania for four GW-scale green hydrogen projects
Renewable energy offers Mauritania numerous opportunities to exploit the country’s natural resources, including its sea and desert areas, as well as solar and wind resources. It presents high potential for green hydrogen production and is currently negotiating with international investors to realize gigawatt-scale renewable hydrogen projects in the country.
The Government of Mauritania requested Rebel, through GiZ’s CONNEX support unit, to assist the government in negotiating the commercial terms of green hydrogen production and export contracts with four international developers and investors for several large green hydrogen projects (ranging from 10 to 30 GW). However, there is no precedent for green hydrogen export contracts in the world between investors and governments, nor are there examples of commercial or fiscal terms. Additionally, green hydrogen export business cases are unprecedented and uncertain, introducing many unknowns to the negotiation support.
We are negotiating with several developers and investors on the commercial and fiscal terms that would apply to the green hydrogen contracts between the government and the investors. To assist in these negotiations, we are constructing a financial model to simulate the business case for the different green hydrogen projects in the country. The financial model encompasses projections for all components of the green hydrogen supply chain, including renewable energy production through solar and wind power, hydrogen production through electrolysis, as well as ammonia production and associated facilities.
This financial model is being utilized to simulate the impact of various commercial and fiscal instruments that could be applied to the green hydrogen export projects. The goal is to ensure that the terms proposed by the government do not adversely affect investors’ business cases while also generating benefits for the government, such as job creation, economic growth, and fiscal income. Through these efforts, we aim to establish a win-win partnership between the government and investors—one that not only fosters a viable and bankable business case for investors but also generates significant benefits for Mauritania.
The experience of a Rebel
A challenging experience
Win-win partnerships between a government and private investors to bring green hydrogen in Africa to a next level.