IFC and OCP Group to increase the production of low-carbon fertilizers

Over the past three years, the COVID-19 pandemic and the war in Ukraine have pressured global food supply chains, leading to supply disruptions and price fluctuations. Reducing the sector’s dependence on hydrocarbons helps ensure sustainable food production, price stability and improved food security in developing and emerging countries.

Under the agreement IFC will provide OCP with a €100 million green loan for the construction of two solar power plants. These plants will provide zero-emission power to OCP’s operations in the mining towns of Benguerir and Khouribga, home to Morocco’s – and the world’s – largest phosphate reserves.The plants will have a combined capacity of 400 megawatts peak (MWp) and up to 100 megawatt hours (MWh) of battery storage, making this the first large scale solar photovoltaic project with integrated storage infrastructure in Morocco – and the largest in North Africa.

A green loan is a form of financing for eligible projects that contribute to environmental objectives such as climate change mitigation or adaptation.

“Today’s agreement is a major milestone towards our target of using 100% renewable energy in our fertilizer production by 2027”, said OCP Group Chairman and CEO Mostafa Terrab. “Our deepening collaboration with IFC reflects our alignment on the urgency of addressing the global challenges of food security and climate change simultaneously”.

“IFC is proud to support OCP in its journey to reduce its carbon footprint, a strategy that will have long-term positive effects not only in Morocco, but also on the global food supply,” said Makhtar Diop, IFC Managing Director. “The fertilizer industry needs leading companies like OCP to embrace a sustainable path forward, and IFC is committed to supporting this important shift.”

The announcement marks IFC’s second green loan to OCP this year. In April 20 23, as part of the first phase of OCP’s 1.2 gigawatts peak (GWp) solar program, IFC provided a €100 million loan for the construction of four solar power plants, also in Benguerir and Khouribga, for a combined capacity of 202 MWp.

OCP’s solar program is implemented by OCP Green Energy SA, a wholly-owned subsidiary of OCP created in 2022 to develop the company’s renewable energy generation activities. It is part of OCP’s US$13 billion green investment programme, which aims to increase its green fertiliser production and convert its operations fully to green energy by 2027.

The project will also leverage the expertise of INNOVX, a multi-sectorial venture platform launched by Mohammed VI Polytechnic University (UM6P) that is dedicated to building innovative and sustainable businesses and ecosystems with a strong local impact.

IFC’s green loan agreement with OCP is part of its strategy to increase climate-related investments and projects in emerging markets, decarbonise economies, and adapt to a warming planet.The project also aligns with IFC’s Global Food Security Platform, a US$6 billion financing facility launched in 2022 to strengthen the private sector’s ability to respond to the food crisis and help support the sustainable production of food.

Read the article online at: https://www.worldfertilizer.com/project-news/11102023/ifc-and-ocp-group-to-increase-production-of-low-carbon-fertilizers/