Written By: Faith
Morocco’s OCP Group has signed a €350 million financing agreement with Agence Française de Développement (AFD). The funds will support OCP’s ambitious $13 billion Green Investment Program running from 2023 to 2027. The initiative marks a major shift in the global fertilizer industry toward green innovation, renewable energy, and climate resilience.
Key Goals Were Water Autonomy, Green Energy, and Carbon Neutrality
The financing will help OCP achieve several aggressive sustainability targets. By early 2025, the company began operating using 100% non-conventional water sources, primarily from desalination and treated wastewater. By 2027, it aims to achieve full water autonomy with a desalination capacity of 560 million cubic meters annually.
OCP is racing to transition entirely to renewable energy by 2027, aiming to generate 5 GW of clean energy within that timeline, and to scale to 13 GW by 2032.
The Group plans to produce 1 million tons of green ammonia per year by 2027, rising to 3 million tons by 2032.
OCP has pledged to reach full carbon neutrality across its entire value chain by 2040, targeting both direct (Scope 1 and 2) and indirect (Scope 3) emissions.
Green Financing with a Climate Agenda
The AFD loan is structured around measurable sustainability performance indicators and is expected to advance:
- Development of green hydrogen and ammonia facilities.
- Renewable energy deployment across OCP operations.
- Climate risk integration into company-wide decision-making.
- Biodiversity protection through better environmental governance.
Beyond environmental gains, the investment aims to foster inclusive and climate-smart agriculture and enhance food security especially in Africa, where climate shocks and soil degradation threaten millions.
Massive Infrastructure Built on Water Resilience
Water scarcity is a persistent challenge in Morocco, where climate change is reducing rainfall and pressuring water resources. OCP’s water strategy backed by this Green Investment Program includes major desalination infrastructure investments.
In February 2024, the company secured over $620 million in financing from multiple development partners to fund new seawater desalination plants. These facilities will supply both industrial sites and local communities, ensuring shared water access and resilience. The initiative is part of OCP’s “Green Water” strategy to reduce dependence on freshwater sources.
Partnering with organizations like the International Finance Corporation (IFC) and African Development Bank (AfDB), OCP is not only solving its own water needs but also contributing to regional water security, a key pillar in ensuring long-term food production and agricultural stability in North and West Africa.
Clean Energy and Green Ammonia Are Changing the Fertilizer Industry
Fertilizer production is historically energy-intensive and carbon-heavy, especially due to ammonia synthesis, which traditionally uses fossil fuels. By integrating green hydrogen and green ammonia into its processes, OCP is setting a new standard for clean fertilizer manufacturing.
Under the Green Investment Program, the company has set out to develop its own green hydrogen capacity, which will be used to produce low emission ammonia, a critical component of nitrogen-based fertilizers. This shift will drastically cut OCP’s industrial emissions while paving the way for climate-friendly agriculture.
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The company has already formed a strategic partnership with Australia’s Fortescue to launch a joint venture for green hydrogen, green ammonia, and fertilizer production in Morocco. The collaboration also includes building a research and development hub in Marrakesh, positioning the region as a center for green tech innovation in agriculture.
Strategic Partnerships Powering the Transition
Beyond AFD, OCP’s sustainability pivot is being supported by a global coalition of partners:
- ENGIE, the French multinational utility, signed a preliminary agreement with OCP to invest up to €17 billion in large-scale renewable projects, including solar, wind, water desalination, and green ammonia infrastructure.
- The African Development Bank and the European Investment Bank have also contributed to funding desalination and renewable energy ventures as part of the broader green strategy.
- The International Finance Corporation (IFC) joined forces with OCP in 2024 to develop water infrastructure and sustainable farming value chains in Africa.
These strategic alliances reflect growing investor confidence in Africa’s potential to lead the green transition in agriculture, particularly through localized innovation and climate finance.
Focusing on Africa’s Agriculture, Food Security, and Local Development
A critical outcome of OCP’s Green Investment Program is its impact on African agriculture. Fertilizer accessibility, soil health, and sustainable food production are top priorities, particularly in sub-Saharan Africa, where soil depletion and climate stress are undermining yields and farmer incomes.
By boosting production of green fertilizers and bio-based soil health solutions, OCP is strengthening its support to smallholder farmers across Africa. The company already operates several soil and crop analytics platforms that offer tailored fertilizer recommendations. These tools, now enhanced with climate-smart products, are poised to increase yields and promote sustainable land use.
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The Green Investment Program supports localized manufacturing and value chain development. This not only reduces supply chain emissions but also fosters economic development and job creation in African countries. OCP’s strategy positions Africa as both a producer and beneficiary of sustainable agricultural innovation.
Turning the 2040 Carbon Neutrality Goal into Reality
Achieving net zero emissions by 2040 across a global supply chain is no small feat. OCP is addressing emissions across:
- Scope 1: Direct emissions from its facilities.
- Scope 2: Indirect emissions from purchased electricity.
- Scope 3: Upstream and downstream emissions, including transport, raw materials, and product use.
To meet these goals, OCP is investing in data driven monitoring tools, lifecycle assessments, and clean logistics. The group is also reviewing its procurement policies and supplier partnerships to align with low-carbon standards.
This ambitious target places OCP among a select group of global industrial players leading the charge in climate accountability and transparency.
A Broader Vision for Green Industry in Africa
OCP’s Green Investment Program is more than a corporate sustainability plan; it’s a blueprint for how African industries can drive the global green transition.
By aligning commercial success with environmental responsibility and social development, OCP demonstrates that green growth is viable, scalable, and beneficial across multiple dimensions. Its commitment to renewable energy, circular water use, and inclusive development represents a pioneering model for industrial transformation in the Global South.
