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OCP snags EUR 200 mn loan from KfW for green initiatives: Morocco’s phosphates and fertilizers producer OCP has secured a EUR 200 mn loan from the German Development Bank (KfW) to reduce water use and expand renewables production, according to a statement released on Friday. The funds will support sustainable fertilizer production and global food security in efforts to mitigate the impacts of climate change in the country.
The breakdown: EUR 150 mn of the loan will go to projects that will help OCP achieve 100% non-conventional water use in industrial operations by 2024, the statement added. The remaining EUR 50 mn will go towards setting up 5 GW of clean energy by 2027 to help power operations and increase the firm’s production of green fertilizers. The decarbonization plans aim to help OCP achieve carbon neutrality for Scope 1 and 2 emissions by 2030, and Scope 3 by 2040.
All part of a bigger plan: This financing falls in line with OCP’s USD 13 bn green investment strategy for 2023-2027. The strategy allocates USD 7 bn towards green hydrogen and ammonia production with the goal to supply 1 mn tons annually by 2027, the statement notes.
OCP Group recently drummed up major funds: OCP successfully raised USD 2 bn for its decarbonization strategy through a dual-tranche Eurobond a week after it started the roadshow for its international bond in April. The fertilizer company also received a total of USD 188 mn in loans for desalination and renewable energy storage projects from the AfDB, the Clean Technology Fund and the Canada-African Development Bank Climate Fund back in February.
