GHANA- Morocco-based multinational OCP Group and Ghana’s government have completed the front-end engineering design (FEED)- the initial studies- for the construction of a US$1.3 billion fertilizer complex in the Takoradi in the Western Region of Ghana.
The phosphate giant and the Ghanaian government first signed the agreement to build the fertilizer plant in September 2019 and have finally started the design for the same.
Ghana National Gas Company Limited (GNGC) is also part of this partnership and is expected to provide the necessary gas for the fertilizer plant.
According to a report from Ghanaian media sources, the project is scheduled to be completed in the next three years and aims to increase fertilizer availability in the African country as well as reduce input costs for farmers.
The fertilizer plant is expected to reduce Ghana’s annual imports of fertilizers by US$400 million.
Additionally, the plant is expected to contribute to the country’s efforts to boost the industrialization of the agriculture sector.
Commenting on the project, the Chief Executive Officer of the Ghana National Gas Company Limited (GNGC), Dr. Ben Asante, said that the project is set to yield a production input of one million tonnes of fertilizer in the beginning.
Asante explained that the project was launched following the signing of a tripartite agreement between the Ghanaian Ministry of Food and Agriculture. Under the agreement, the Ghana Gas Company would provide the necessary gas while the OCP Group of Morocco would provide the necessary funds.
The official further explained that the plant is set to use between 80 million standard cubic feet (scf) and 100 million scf of natural gas to produce fertilizers with the venture set to significantly reduce the country’s annual imports of fertilizers.
The Moroccan company said then that the plant is part of its vision to boost South-South cooperation and become a key player in the African fertilizer market.
To make its operations more sustainable, last month, the Morrocan phosphate company sought to invest in solar power to reduce its production costs and the carbon footprint of its operations in Morocco.
The International Finance Corporation (IFC) provided a US$ 110.16 million loan to the OCP Group to support the construction of four solar photovoltaic plants to power the group’s operations in Morocco.