MOROCCO – OCP Group, the world’s largest phosphate-based fertilizer producer, has secured €100 million (US$110m) in form of a landmark green loan from the International Finance Corporation (IFC) to build four solar plants that will help green its fertilizer production by reducing its carbon footprint.

A green loan is a form of financing for environmental projects where benefits are assessed and measured against agreed targets.

The solar project is part of OCP’s US$13 billion Green Investment Program, which aims to increase its green fertilizer production and transition its operations to green energy by 2030.

The Investment program will also allow OCP to replace its electricity consumption with green energy, avoiding about 285,000 tons of carbon dioxide equivalent (tCO2e) annually. OCP Group intends to produce 5 gigawatts (GW) of clean energy by 2027 and no less than 13GW by 2032.

The solar projects will be built in the mining towns of Benguerir and Khouribga, home to Morocco’s largest phosphate reserves.

The project, implemented by OCP Green Energy SA, a wholly owned OCP subsidiary established in 2022 to develop the company’s renewable energy generation activities, will have a combined capacity of 202-megawatt peak (MWp).

“This ground-breaking agreement underlines our commitment to the global agricultural transition. Investing in reliable and competitive renewable energy is a key pillar of OCP’s investment plan towards our ambitious targets for sustainable green fertilizers,” said OCP Group Chairman and CEO Mostafa Terrab.

“Securing this loan is a testimony to the partnership we are building with IFC and the alignment of our institutions addressing the global challenges of food security and climate change simultaneously.”

In a broad sustainability transition, OCP plans to source 100 percent of its electricity needs through wind, solar, and cogeneration by 2027.

With this project, the fertilizer company will have a cost-effective source of energy, contributing to its overall competitiveness by increasing the production of low-carbon fertilizers.

This 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.

“We are proud to support OCP’s efforts to reduce emissions and green its fertilizer production in Africa,” said IFC Managing Director Makhtar Diop.

“Climate change and food security are deeply intertwined. With this investment, we are helping build a food system for Africa and the world that is both more sustainable and more secure.”

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