Morocco’s OCP Group secures €200M green finance from Germany’s KfW
OCP Group, the world leader in plant nutrition solutions and phosphate-based fertilizers, announced it has finalized a €200 million financing agreement with KfW, Germany’s development and investment bank, to enhance global food security and combat climate change.
The KfW loan is a significant contribution towards OCP Group’s $13 billion green investment strategy for 2023-2027 to increase sustainable fertilizer production, the group said in a press release.
OCP explained that €150 million of KfW financing will be dedicated to the Group’s goal of using 100% non-conventional water in 2024 for its industrial operations, and that €50 million will help the Group hit its targets of 100% clean energy by 2027 (5 gigawatts) and full carbon neutrality in Scopes 1 and 2 by 2030, and in Scope 3 by 2040, at the same time as increasing the production of green fertilizers.
As part of its green strategy, OCP is investing $7 billion in the production of green hydrogen and green ammonia from wind and solar power, with an output of 1 million tons annually by 2027, for use not only in fertilizers but also to support the development of 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, the group said.
The significantly increased volumes of OCP Group’s customized plant nutrition solutions that are sustainably produced will play a key role in empowering farmers to enhance global food security at the same time as decarbonizing agriculture and protecting biodiversity.
Welcoming the deal, Karim Lotfi Senhadji, OCP Group’s Chief Financial Officer commented: “We are thrilled to announce this significant milestone in our 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.”
