OCP Group project to deploy up to 13 billion US$ in green investments by 2027, will help to develop green ammonia production in accordance with Morocco’s national Green Hydrogen strategy and the group’s carbon neutrality objectives for 2030 and 2040
In a world faced with the challenges of a growing population and the need to boost food production against a backdrop of shrinking arable land per capita, OCP’s leadership position is increasingly seen as greatest responsibility. With an annual turnover of over 11 billion dollars, OCP Group is a leader in plant nutrition and the world’s largest producer of phosphate-based fertilizers. It is currently facing vital commitments for the African continent and the world as agriculture becomes increasingly vulnerable to climate change, which damages crops and depletes soil nutrients. OCP Group acknowledges this reality and is focusing on the most effective ways to achieve global food security.
In Africa itself, the population is expected to double by 2050, to reach more than 2.5 billion. And according to the FAO, a growth of 50-60% in world crop production is necessary by 2050 to tackle the world population’s needs and meets the Sustainable development goal of Zero hunger (SDG2) worldwide.
By addressing environmental challenges associated with agriculture, including greenhouse gas emissions, deforestation, water scarcity, and soil degradation, the company is actively involved in a green revolution, focusing on carbon farming to better contribute to sustainable agriculture. According to the Carbon Cycle Institute, carbon farming “improves the rate at which CO2 is removed from the atmosphere and stored in plant material and/or soil organic matter”. It helps improve the soil health management that enhances the soil carbon sequestration potential, creates a virtuous cycle that reverses the soil depletion process, and refines the soil quality and the conditions that maintain its fertility. A green revolution that then puts on the top of its priorities the soil health critical issue along with the carbon neutrality strategy that the company is committed to achieve.
CARBON NEUTRAL IN 2030
By 2027 the Group aims to power its entire industrial toolset with green energy before reaching full carbon neutrality in 2030 in terms of energy supply and industrial activity. And by 2040 the OCP Group will be 100% carbon neutral for its raw material use and total production. And in this frame, an integral part of OCP’s green revolution consists in its dedication to green hydrogen and green ammonia production, an essential input in the world’s global fertilizer market. Currently, the manufacture of ammonia contributes 1.8% of CO2 emissions worldwide. «Green ammonia» is ammonia made with green hydrogen, which is hydrogen created through electrolysis using renewable energy sources, and aims to tackle the carbon footprint issue of both Hydrogen and Ammonia ».
Resolutely engaged toward new energies, the company effectively plans to become a global leader in green hydrogen, leveraging the Morocco’s favorable conditions for renewable energy. And by being the biggest domestic offtaker of green hydrogen, OCP secures the critical first to make Morocco a world green Hydrogen exporter. And indeed, Morocco’s abundance of coastal lands in the south, along with the solar energy potential in daylight and wind energy during night hours, and its proximity to Europe reveals the potential to be a fundamental supplier of Europe in terms of green energy.
Among the major ongoing investments, the Tarfaya project is set to produce 1 million tons of green ammonia by 2027, powered by wind and solar energy. OCP’s phased development includes establishing first capacity of 200,000 tons of green ammonia production by 2026 allowing to deploy and assess technologies, an industrial phase producing 1 million tons by 2027, and a scaleup phase reaching 3 million tons by 2032.
To support its green initiatives, OCP has allocated $13 billion to green investment to different areas. Among them, fully rely on renewable electricity for its fertilizer production by 2027, launch the production of green molecules, including green ammonia and expand the fertilizer capacity. Hence, from fertilizers and green ammonia production, to sustainable desalination and green hydrogen generation by electrolysis, OCP aims to achieve upstream and downstream integration across all critical components of the value chain and to establish an industrial hub benefitting from competitive, green energy.
PARTNERSHIP OPPORTUNITIES:
The company that is involved in multiple constructive partnerships, is constantly seeking for new partners to strengthen its R&D and innovation ecosystem. Similarly to the thriving Mohammed VI Polytechnic University of Benguerir (UM6P), where OCP has implemented a technological competitive edge through R&D and innovation programs, targeting technology development in electrolyzers supply, energy efficiency and renewable energies as developing new solar technologies, benefiting from the Green Energy Park . As a follow up to that partnership, the InnovX, development arm hosted by the UM6P aims to address the sustainability challenges, innovate in technology-related fields, and invests in promising tech and innovative companies.
OCP’s innovative approach involves also partnerships with startups and large corporates, thanks to its experience in large Capex programs, and in creating an ecosystem to test pre-commercial technologies and co-develop solutions. The company is actively engaging in partnerships for solar, wind turbines, batteries, electrolyzers, and ammonia production, aiming to localize manufacturing, reduce costs, and de-risk supply chains. It is also active in Bidra Innovation Ventures, a $250M sustainabilityfocused venture capital firm based in San Francisco and in Benguerir, that focuses in supporting technology acceleration through direct investments and funding of R&D/pilots.
OCP Group’s commitment to a sustainable future, carbon neutrality, and green revolution positions it as a key player in the world in addressing the challenges of global food production while contributing to environmental sustainability. The company’s phased development, strategic partnerships, and innovative initiatives underscore its dedication to creating a positive impact on agriculture and the environment.
M. TILL ZEINO-MAHMALAT
Head of Green Ammonia, OCP Group
