MOROCCO – Moroccan phosphate giant OCP announced that it has secured a MAD 2.1 billion (approximately US$217 million) financing agreement from KfW, Germany’s development and investment bank. 

This funding is intended to support OCP’s extensive green initiatives, and it is a pivotal component of OCP’s ambitious US$13 billion (MAD 129 billion) green investment strategy for 2023-2027. 

According to a press release from the fertilizer giant, this strategy aims to enhance sustainable fertilizer production, bolster global food security, and address climate change.

The US$217 million funding will be allocated to two primary areas. US$163 million (MAD 1.6 billion) is earmarked to help OCP achieve its target of using 100% non-conventional water for its industrial operations by 2024. 

The remaining US$55 million (MAD 538.9 million) will support OCP’s objectives of reaching 100% clean energy by 2027, attaining a capacity of 5 gigawatts, and achieving full carbon neutrality for Scope 1 and 2 emissions by 2030 and Scope 3 by 2040. This investment will also facilitate increased production of green fertilizers.

As part of its green strategy, OCP is investing US$7 billion (MAD 69.5 billion) in producing green hydrogen and green ammonia, intending to produce 1 million tons annually by 2027. 

This output is expected to support the fertilizer industry and help develop other green industries in Morocco.

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 emphasized that its efforts to produce higher volumes of customized, sustainably produced plant nutrition solutions will empower farmers worldwide, enhance food security, decarbonize agriculture, and protect biodiversity.

Karim Lotfi Senhadji, Chief Financial Officer of OCP Group, expressed enthusiasm for the partnership with KfW, describing it 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 but also demonstrates that stakeholders and investors trust OCP Group, our business model, and financial strength to deliver on our shared goals,” he concluded.

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