OCP Group Secure €200 Million Green Financing from KfW

OCP Group, the world leader in plant nutrition solutions and phosphate-based fertilizers, has finalized a €200 million financing agreement with KfW, Germany’s development and investment bank. This funding aims to bolster global food security and address climate change.

The KfW loan is a significant part of OCP Group’s $13 billion green investment strategy for 2023-2027, aimed at increasing sustainable fertilizer production:

• €150 million will be dedicated to achieving the Group’s goal of using 100% non-conventional water for its industrial operations by 2024.
• €50 million will support the Group’s targets of achieving 100% clean energy (5 gigawatts) by 2027 and attaining full carbon neutrality in Scopes 1 and 2 by 2030, and in Scope 3 by 2040, while also increasing the production of green fertilizers.

The strategy also includes a $7 billion investment in the production of green hydrogen and green ammonia from wind and solar power, with an annual output of 1 million tons by 2027. This production will be used not only in fertilizers but also to support the development of other green industries in Morocco.

These investments will foster the emergence of an innovative and integrated ecosystem in Morocco, involving approximately 600 companies in the energy, agricultural, and industrial sectors, and creating around 25,000 jobs.

The significantly increased volumes of OCP Group’s sustainably produced plant nutrition solutions will play a crucial role in empowering farmers, enhancing global food security, 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 but also demonstrates the trust stakeholders and investors have in OCP Group, our business model, and our financial strength to deliver on our shared goals.”