The French Development Agency (AFD) and Morocco’s fertilizer giant OCP Group have signed a €350 million financing agreement to support OCP’s ambitious green investment program, which aims to decarbonize operations and increase production capacity while prioritizing environmental sustainability.
the deal was signed between the two institutions on May 12, as OCP seeks more funding for its decarbonization plan.
The funding will actually contribute to OCP’s broader $13 billion investment program for 2023-2027, which focuses on achieving carbon neutrality by 2040 while expanding fertilizer production. A key goal is supplying all OCP industrial facilities with green energy by 2027, produced through wind, solar, hydroelectric, and cogeneration sources.
“The program aims to increase the group’s capacity to produce decarbonized fertilizers, notably by integrating green ammonia, to progressively reduce its carbon footprint and achieve carbon neutrality across its entire value chain by 2040,” OCP said in a statement issued Monday.
The funds will be disbursed based on performance indicators related to increasing clean energy and non-conventional water production capacity, developing green hydrogen and ammonia production, and integrating climate and biodiversity factors into OCP’s risk management processes.
The initiative also aims to benefit African farmers by providing customized green fertilizers adapted to local crops, climates, and soils to boost agricultural yields across the continent.
The financing agreement was signed during a visit to Morocco by a high-level AFD delegation, led by Director General Remy Rioux. During the visit that also led the delegation to the southern provinces of Laayoune and Dakhla, AFD pledged €150 million for these provinces, aligning with France’s recognition of Morocco’s sovereignty over the Sahara.