The International Finance Corporation (IFC) and The OCP Group, a world leader in the phosphate fertilizer industry, have strengthened their relationship through a “green loan” deal for the development of four solar power facilities.
Through the use of these facilities, the OCP Group will be able to increase its output of green manures while lowering its carbon footprint in Morocco’s industrial operations.
Benguerir and Khouribga, which are home to Morocco’s largest phosphate reserves, will get a €100 million loan from the IFC to build solar power facilities.
OCP Green Energy SA, a subsidiary of OCP Group established in 2022 to develop and carry out the group’s renewable energy generation activities, will construct the facilities, which will have a combined capacity of 202 MW.
The project is a component of the $13 billion Green Investment Program of the OCP Group, which intends to boost the production of green manures by utilizing renewable energies.
The four facilities should cut the Group’s emissions by about 285,000 tCO2e annually. In addition to improving the OCP Group’s overall competitiveness and its ability to produce low-carbon fertilizers, the solar power plants will offer a financially viable supply of energy.
By 2027, OCP wants to supply all of its electricity needs from wind, solar, and cogeneration sources.
The initiative supports IFC’s mission to assist developing nations in gaining access to private capital so they may carry out environmentally beneficial projects, decarbonize their economy, and prepare for climate change.
Between 2021 and 2025, the IFC is committed to raising its climate-related investments to an average annual volume of 35% of its long-term commitment volume and collaborating with other financial institutions to fund initiatives that assist climate change adaptation and mitigation.
Additionally, the project is in line with IFC’s Global Platform for Food Security, a $6 billion funding facility established in 2022 to increase the private sector’s ability to address the global food problem and promote sustainable food production.
The project will also rely on the knowledge of INNOV’X, a technology innovation vector established by Mohammed VI Polytechnic University (UM6P) in 2022. INNOV’X aims to address technological and sustainability challenges by creating innovative businesses and high-performance ecosystems with a significant local impact.
In addition, the IFC gave the OCP Group a $100 million loan in 2021 to help OCP Africa expand the continent’s availability of its fertilizers and enhance training in sound agricultural techniques in a number of nations. Additionally, the IFC provided assistance to OCP in 2022 while it worked to become certified by EDGE (Economic Dividends for Gender Equality) for gender diversity in the workplace.