OCP revealed to Reuters plans to invest $7 billion in an ammonia plant that will use green hydrogen produced from renewable fuel. The state-owned company aims to increase its production capacity and align with low carbon objectives.
As a major importer of ammonia, OCP spent $2 billion on the raw material last year due to increased global prices resulting from the conflict in Ukraine. The impact of the war led the company to focus on renewable energy as part of Morocco’s industrial strategy to reduce energy imports.
To address supply challenges, OCP has secured an agreement to purchase ammonia from North America this year. The company plans to strengthen its domestic supply chain by constructing a plant in Tarfaya, in southern Morocco.
The Tarfaya plant is projected to produce 200,000 tonnes of ammonia annually. This capacity will increase to 1 million tonnes by 2027 and further rise to 3 million tonnes by 2032.
OCP’s plan to use hydrogen produced from the sun and wind to make ammonia is a key part of their $13 billion renewable energy strategy that they shared in December.
Morocco has made significant investments in renewable energy due to its ample undeveloped land, abundant sunlight and wind, and limited oil and gas resources. The country also has a complex relationship with neighboring Algeria, a major hydrocarbon producer.
As part of the Tarfaya project, OCP envisions a renewable-energy powered desalination plant with a capacity of 60 million cubic meters per year to supply its industrial facilities.
These ambitious plans underline Morocco’s commitment to sustainable development and its position as a leader in the transition to renewable energy in the region.
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.