The OCP Group, a leading player in the phosphate fertilizer market, has strengthened its partnership with the International Finance Corporation (IFC) through a “green loan” agreement for the construction of four solar power plants.
These plants will supply renewable energy to the OCP Group’s industrial activities in Morocco, reducing its carbon footprint and increasing its production of green manures.
The IFC will provide a €100 million loan for the construction of the solar power plants in Benguerir and Khouribga, which are home to Morocco’s largest phosphate reserves.
The plants will have a combined capacity of 202 MW and will be implemented by OCP Green Energy SA, a subsidiary of OCP Group, created in 2022 to develop and implement the group’s renewable energy production activities.
The project is part of the OCP Group’s $13 billion Green Investment Program, which aims to increase the production of green manures by leveraging renewable energies.
The four plants are expected to reduce the Group’s emissions by around 285,000 tCO2e per year. The solar power plants will provide a cost-effective source of energy, contributing to the overall competitiveness of the OCP Group and its production of low-carbon fertilizers.
OCP plans to meet 100% of its electricity needs with wind, solar and cogeneration energy by 2027.
The project supports IFC’s mandate to help emerging countries access private capital to implement environmentally friendly projects, decarbonize their economies, and adapt to global warming.
The IFC is committed to increasing its climate-related investments to an annual average of 35% of its long-term commitment volume between 2021 and 2025 and to working with financial institutions to fund projects that support climate change mitigation and adaptation.
The project also aligns with IFC’s Global Platform for Food Security, a $6 billion financing facility launched in 2022 to build the capacity of the private sector to respond to the food crisis and support sustainable food production.
The project will also rely on the expertise of INNOV’X, an innovation vector launched by the Mohammed VI Polytechnic University (UM6P) in 2022 and which aims to respond to global sustainability issues and technological challenges through the development of innovative businesses and high-performance ecosystems with a strong local impact.
In addition, the IFC provided OCP Group with a $100 million loan in 2021 to support its subsidiary, OCP Africa, to increase the availability of its fertilizers on the continent and improve training in good agricultural practices in several countries. The IFC also supported OCP in 2022 in its process of obtaining EDGE (Economic Dividends for Gender Equality) certification for gender diversity in the workplace.
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