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OCP Group Secures EUR 200 Million Financing Agreement with KfW to Boost Global Food Security and Tackle Climate Change

OCP Group Secures EUR 200 Million Financing Agreement with KfW to Boost Global Food Security and Tackle Climate Change

2 June 2024

OCP Group, a leading global provider of plant nutrition solutions and phosphate-based fertilizers, has entered into a EUR 200 million financing agreement with KfW, Germany’s development and investment bank. This deal is designed to enhance global food security and address climate change.

The KfW loan is a key part of OCP Group’s extensive USD 13 billion green investment plan for 2023-2027, aimed at sustainable fertilizer production:

- EUR 150 million will be directed towards achieving the company’s goal of utilizing 100% non-conventional water for its industrial processes by 2024.
- EUR 50 million will assist in meeting targets for 100% clean energy use by 2027, full carbon neutrality in Scopes 1 and 2 by 2030, and Scope 3 by 2040. This investment will also help boost the production of green fertilizers.

As part of its strategy, OCP Group plans to invest USD 7 billion in generating green hydrogen and green ammonia from wind and solar power. By 2027, the initiative aims to produce 1 million tons annually, which will be used not only in fertilizers but also to support other green industries in Morocco.

These initiatives are expected to create an innovative ecosystem in Morocco, involving around 600 companies across the energy, agricultural, and industrial sectors, and generating approximately 25,000 jobs.

The increase in sustainably produced, customized plant nutrition solutions by OCP Group is expected to empower farmers, enhance global food security, reduce agricultural carbon emissions, and protect biodiversity.

Karim Lotfi Senhadji, OCP Group’s Chief Financial Officer, expressed enthusiasm about the agreement, stating, "We are thrilled to announce this significant milestone in our journey towards a sustainable future. This agreement with KfW represents not only a pivotal contribution to our ambitious green investment strategy but also demonstrates the trust stakeholders and investors place in OCP Group, our business model, and our financial strength to achieve our shared goals."

This strategic financing agreement underscores the ongoing efforts by key players in the agricultural and energy sectors to promote sustainability and combat climate change. Through such initiatives, substantial progress can be made towards securing global food supplies and minimizing the environmental impact of industrial operations.

AFRIQOM Market Reporter

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