OCP Group secures EUR 200M green finance from KfW

OCP Group, the world leader in plant nutrition solutions and phosphate-based fertilizers, has finalized a EUR 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 USD 13 billion green investment strategy for 2023-2027 to increase sustainable fertilizer production:

• EUR 150 million will be dedicated to the Group’s goal of using 100% non-conventional water in 2024 for its industrial operations.
• EUR 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.

The strategy includes an investment of USD 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 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.”

About OCP Group

OCP Group helps feed a growing global population by providing it with the essential elements for soil fertility and plant growth. With over a century of expertise and a turnover of more than USD 9 billion in 2023, OCP is the world leader in plant nutrition solutions and phosphate-based fertilizers. Headquartered in Morocco and present on five continents, OCP has approximately 20,000 employees and works closely with over 350 customers around the world. OCP recently launched a green investment strategy, dedicated to increasing fertilizer production and investing in renewable energy. The strategy foresees an overall investment of approximately USD 13 billion over the period 2023-2027, which will enable the Group to use 100% renewable energy by 2027 and achieve full carbon neutrality by 2040 (Scopes 1 and 2 by 2030, and Scope 3 by 2040). The strategy also aims to reach a water desalination capacity of 560 million m3 in 2026 and to increase the production of green fertilizers. The Group is firmly convinced that leadership and profitability are synonymous with social responsibility and sustainable development. Its strategic vision sits at the junction of these two dimensions.

For more information: www.ocpgroup.ma