Fertilizer: OCP bets big on “green” investment
The OCP group (Office Chérifien des Phosphates) is resolutely in tune with the times. The phosphate giant has just announced its new “green” investment program of 130 billion Dirhams (13 billion USD) over the 2023-2027 period, with “the achievement of a local integration rate of 70%, the support of 600 Moroccan industrial companies, and the creation of 25,000 direct and indirect jobs”, specifies a press release from the Royal Cabinet.
The announcement comes at a time when climate change is entering the WTO commitments for the first time (ministerial conference of last June), and when countries are negotiating a new generation of sustainable, green, and responsible investments. The program was presented on Saturday, December 02, during a ceremony presided over by HM the King at the Royal Palace in Rabat. “This ceremony is part of the proactive orientation promoted by HM the King for several years, in terms of transition to green energies and a low-carbon economy. It comes in the wake of the working meeting chaired by the Sovereign, on November 22, devoted to the development of renewable energies and to the new prospects in this field ”, underlines the Royal Cabinet. A memorandum of understanding has been signed with the Government. It is a question for OCP of increasing its fertilizer production capacity, while committing to achieve carbon neutrality before 2040. OCP will have to increase its output from the current 12 million tons to 20 million tons in 2027. The phosphate company will thus operate an extension of mining capacities, through the opening of a new mine in Meskala, and the installation of a new chemical and mining complex in Mzinda. The latter will process rock from the Benguerir and Youssoufia mines, as well as the new Meskala mine. The phosphate giant also plans to supply all of its industrial facilities with green energy by 2027. All of its electricity will therefore come from wind, solar, hydroelectric, and cogeneration sources. The carbon-free energy produced would also be used for the new seawater desalination facilities, both to meet the group’s needs, and to supply drinking water and irrigation to the areas bordering the OCP sites. Moreover, before the end of the year, the group will have already commissioned 40 million cubic meters of desalinated water, which will supply drinking water to the cities of Safi and El Jadida.
By investing in the renewable energy – green hydrogen – green ammonia sector, OCP could free itself from its imports of ammonia, of which it is the world’s largest customer. “This will enable (OCP) to enter the market for green manures and of fertilization, adapted to the specific needs of the different soils and cultures”, explained the press release from the Royal Cabinet.
By financing industrial SMEs operating in energy and agriculture, the group will be able to rely on a national ecosystem, and at the same time generate new job opportunities. The ambition of the OCP group is to “promote the development of agricultural practices, by providing fertilizers adapted to the specific needs of different types of soil and crops”. On the continent in particular, this “truly sustainable” approach to fertilization is being rolled out through the “customization” of fertilizers. “The group is thus participating in the realization of a green agricultural revolution on the scale of the continent, which will play a fundamental role in global food security”, said the management of the Group, in conclusion.
Ahlam NAZIH
