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Rabat – Morocco’s phosphate giant, OCP Group, launched an investor roadshow for an international bond valued at up to $2 billion aiming to fund its development plan, Reuters reported on Monday.
The report explains that OCP Group appointed BNP Paribas, Citi, and JP Morgan to manage the bond, the source added.
The moves come after the company announced in 2022 a colossal $13 billion green transition plan that would see the company power all of its industrial facilities using green energy.
Covering the period between 2023 and 2027, the plan is part of the group’s broader strategy to achieve carbon neutrality by 2040.
According to the investment plan, green energy will be used to supply the new seawater desalination capacity in order to meet the group’s needs and provide the areas around OCP sites with drinking and irrigation water.
In addition, the investment plan seeks to end the group’s reliance on ammonia imports, a key component in the manufacturing of fertilizers, as OCP aims to use green hydrogen to cover its ammonia needs.
In July 2023, the phosphate producer announced plans to invest $7 billion in the construction of an ammonia plant in Tarfaya, southern Morocco, that will harness green hydrogen produced from renewable sources.
The move to produce green ammonia locally comes as the group’s import bill hiked to $2 billion in 2022 due to their exposure to global supply chain shock in the wake of the Ukraine crisis.
To bypass the supply bottleneck, the company entered into an agreement with American Koch Industries to procure ammonia from North America.
Meanwhile, OCP has pledged to produce 200,000 tons of green ammonia by 2026, followed by an ambitious target of one million tons over the next four years.
The phosphate giant plans to further expand production, reaching a total output of three million tons by 2032.
This ambitious plan aligns with OCP Group’s commitment to achieving 100% usage of green ammonia in its products.
Read Also: New Investment Plan Reaffirms OCP’s Commitment to Morocco’s Sustainable Future
