OCP to Invest $7 Billion in Green Ammonia Plant in Southern Morocco
By 2026, OCP aims to produce 200,000 tons of green ammonia, followed by an ambitious target of one million tons over the next four years.
Morocco's state-owned phosphate giant, OCP Group
Rabat - Morocco's state-owned phosphate giant, OCP Group, has announced its plans to invest $7 billion in the construction of an ammonia plant in Tarfaya, southern Morocco, that will utilize green hydrogen produced from renewable sources, according to a report by Reuters.
OCP Group, a major ammonia importer, faced significant expenses of $2 billion last year due to global price increases resulting from the conflict in Ukraine.
To mitigate supply issues, the company has secured an agreement to procure ammonia from North America for the current year. Looking ahead, OCP Group aims to strengthen its domestic supply chain by establishing a plant in Tarfaya.
By 2026, OCP aims to produce 200,000 tons of green ammonia, followed by an ambitious target of one million tons over the next four years. The phosphate giant plans to further expand production, reaching a total output of three million tons by 2032.
This ambitious plan aligns with OCP Group's commitment to achieving 100% usage of green ammonia in its products.
Mostafa Terrab, Chairman and CEO of OCP Group, recently presented the company's green industrial program, focusing on green hydrogen and green ammonia, to industry professionals.
Terrab emphasized that clean energy lies at the core of OCP's $13 billion Green Investment Program. He highlighted the company's dedication to producing green hydrogen and green ammonia, achieved through wind, solar, and heat recovery sources, with the ultimate goal of decarbonizing its fertilizer products by 2040.
Terrab reaffirmed OCP Group's pioneering efforts in sustainably produced and customized fertilizers, driven by the utilization of green hydrogen and other cutting-edge technologies.
In December 2022, OCP launched a strategic program for the period of 2023-2027, aiming to increase fertilizer production and invest in new green fertilizers and renewable energy sources.
The program entails a substantial global investment of approximately $13 billion and places a strong emphasis on expanding mining and fertilizer production capacities while striving for complete carbon neutrality by 2040.
As part of its commitment to clean energy, OCP Group has set a target to power all its industrial facilities with green energy by 2027, harnessing the potential of wind, solar, hydroelectric, and co-generation sources.
In a recent collaboration, OCP Group joined forces with the International Finance Corporation (IFC) to construct four solar plants that will power OCP's operations in Morocco, reduce its carbon footprint, and enhance the overall sustainability of its fertilizer production.
