Rabat – Moroccan phosphate giant OCP announced on Friday securing a €200 million (MAD 2.1 billion) financing agreement from KfW, Germany’s development and investment bank, to support the group’s green initiatives.
The funding is a crucial component of OCP’s $13 billion (MAD 129 billion) green investment strategy for 2023-2027, which aims to boost sustainable fertilizer production, support global food security, and tackle climate change, said the fertilizer giant in a press release.
The financing will be allocated in two major areas. €150 million (MAD 1.6 billion) will be dedicated to achieving the Group’s goal of using 100% non-conventional water for its industrial operations by 2024.
An additional €50 million (MAD 538.9 million) will support OCP’s targets of 100% clean energy by 2027, reaching a capacity of 5 gigawatts, and achieving full carbon neutrality for Scope 1 and 2 emissions by 2030 and Scope 3 emissions by 2040. The investment will also facilitate the increase in production of green fertilizers.
As part of its green strategy, OCP is investing $7 billion (MAD 69.5 billion) in the production of green hydrogen and green ammonia, with the aim of producing 1 million tons annually by 2027.
This output is set to support the fertilizer industry, as well as help develop other green industries in Morocco, according to the statement.
“These investments will promote the emergence of an innovative and integrated ecosystem in Morocco, comprising some 600 companies in the energy, agricultural and industrial sectors, and creating approximately 25,000 jobs,” OCP noted.
The group added that its efforts to produce higher volumes of customized, sustainably produced plant nutrition solutions will empower farmers worldwide and enhance food security while decarbonizing agriculture and protecting biodiversity.
Karim Lotfi Senhadji, Chief Financial Officer of OCP Group, expressed enthusiasm for the partnership with KfW, which he described as a “significant milestone” in the company’s journey towards a sustainable future.
“This agreement with KfW represents not only a pivotal contribution to our ambitious green investment strategy. It demonstrates that stakeholders and investors trust OCP Group, our business model and financial strength to deliver on our shared goals,” he concluded.
