IFC and OCP to build 4 solar plants in Morocco
On Wednesday, OCP, the producer of phosphates and fertilizers, announced that it had entered into an agreement with the International Finance Corporation (IFC), the investment branch of the World Bank, for a loan of $110 million. The loan is intended to finance the construction of four solar power plants, which will provide energy to OCP’s industrial operations.
IFC and OCP Group have announced the partnership to reduce OCP’s carbon footprint and transition to green energy through the construction of the solar plants in Morocco. The partnership was announced during the International Monetary Fund-World Bank Group Spring Meetings in Washington D.C.
IFC will provide OCP with a green loan of $110 million to build the solar plants, which will have a combined capacity of 202-Megawatt peak (MWp) and supply clean energy directly to OCP’s operations.
The project is part of OCP’s $13 billion Green Investment Program, which aims to increase its green fertilizer production and transition its operations to green energy by 2030. The solar plants will allow OCP to replace its electricity consumption with green energy, avoiding about 285,000 tons of carbon dioxide equivalent (tCO2e) annually.
Morocco has been investing heavily in clean energy and transitioning to alternative energy sources away from fossil fuel. To date it has the largest concentrated solar plant in the world.
The project will be implemented by OCP Green Energy SA, a wholly owned OCP subsidiary established in 2022. The solar plants will provide a cost-effective source of energy, contributing to OCP Group’s overall competitiveness by increasing production of low-carbon fertilizers. OCP plans to source 100 percent of its electricity needs through wind, solar and cogeneration by 2027.
The project supports IFC’s mandate to help emerging countries access private capital to implement climate-friendly projects, decarbonize their economies, and adapt to a warming planet.
The project also aligns with IFC’s Global Food Security Platform, a $6 billion financing facility launched in 2022 to strengthen the private sector’s ability to respond to the food crisis and support sustainable food production.
