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Rabat – In a move towards sustainable agriculture and climate action, the International Finance Corporation (IFC) and Morocco’s fertilizer giant OCP Group have joined forces to boost the production of low-carbon fertilizers using solar energy.
The collaboration aims to promote greener global food systems and mitigate hydrocarbon price fluctuations, addressing crucial food security concerns, said OCP in a press release.
Under the agreement, IFC will extend a €100 million green loan to OCP for the construction of two solar power plants. These plants will harness solar energy, providing zero-emission power to the group’s mining operations in the cities of Benguerir and Khouribga, which are home to Morocco’s and the world’s largest phosphate reserves.
With a combined capacity of 400 megawatts peak (MWp) and up to 100-megawatt hours (MWh) of battery storage, this initiative marks the first large-scale solar photovoltaic project with integrated storage infrastructure in Morocco, and the largest in North Africa, indicated the statement.
OCP highlighted the disruptions in food supply chains and price instabilities that the world has witnessed in the wake of the COVID-19 pandemic and the war in Ukraine.
In this respect, the company believes that decreasing dependency on hydrocarbons is a pivotal step towards ensuring sustainable food production, price stability, and enhanced food security, especially in developing and emerging nations.
Chairman and CEO of OCP Group, Mostafa Terrab, said that the agreement is a “major milestone” towards the company’s target of using 100% renewable energy in its fertilizer production by 2027.
“Our deepening collaboration with IFC reflects our alignment on the urgency of addressing the global challenges of food security and climate change,” Terrab added.
Read also: New Investment Plan Reaffirms OCP’s Commitment to Morocco’s Sustainable Future
IFC Managing Director Makhtar Diop highlighted IFC’s commitment to support OCP’s carbon footprint reduction strategy, recognizing its long-term positive impact not only within Morocco but also on the global food supply.
“The fertilizer industry needs leading companies like OCP to embrace a sustainable path forward, and IFC is committed to supporting this important shift,” Diop said.
The IFC has previously shown its commitment by providing a €100 million loan for the construction of four solar power plants as part of OCP’s 1.2 gigawatts peak (GWp) solar program.
OCP’s renewable energy efforts are facilitated through OCP Green Energy SA, a subsidiary created in 2022 to spearhead renewable energy generation activities. This is an integral part of OCP’s ambitious $13 billion Green Investment Program, aimed at bolstering green fertilizer production and fully transitioning operations to green energy by 2027.
In addition, this project will leverage the expertise of INNOVX, a multi-sectorial venture platform launched by Mohammed VI Polytechnic University (UM6P). It focuses on fostering innovative and sustainable businesses and ecosystems with a strong local impact, according to the statement.
IFC’s green loan agreement with OCP reflects its strategy to amplify climate-related investments and projects in emerging markets, and foster a shift towards decarbonized economies and adapting to a warming planet.
This initiative also falls in line with IFC’s Global Food Security Platform, a $6 billion financing facility introduced in 2022 to strengthen the private sector’s ability to respond to food insecurity and promote sustainable food production.
