The International Finance Corp. and Morocco’s OCP Group on Oct. 10 announced a green loan to fund construction of solar power plants to produce low-carbon fertilizer. IFC will provide OCP with a €100 million green loan towards the €360 million construction of two solar power plants that will provide clean energy to its operations in the Moroccan mining towns of Benguerir and Khouribga.
The plants will have a combined capacity of 400 megawatts peak (MWp) and up to 100 megawatt hours (MWh) of battery storage, making this the first large scale solar photovoltaic project with integrated storage infrastructure in Morocco, and the largest in North Africa. The power generated by the plants will be environmentally friendly with zero carbon emissions, and more cost-effective than grid electricity during both daytime and evening peak periods.
A green loan is a form of financing for eligible projects that contribute to environmental objectives such as climate change mitigation or adaptation.
“Today’s agreement is a major milestone towards our target of using 100% renewable energy in our fertilizer production by 2027,” said OCP Group Chairman and CEO Mostafa Terrab. “Our deepening collaboration with IFC reflects our alignment on the urgency of addressing the global challenges of food security and climate change simultaneously.”
The announcement marks IFC’s second green loan to OCP this year. In April, as part of the first phase of OCP’s 1.2 gigawatts peak (GWp) solar program, IFC provided a €100 million loan for the construction of four solar power plants, also in Benguerir and Khouribga, for a combined capacity of 202 MWp.
OCP’s solar program is implemented by OCP Green Energy SA, a wholly owned subsidiary of OCP created in 2022 to develop the company’s renewable energy generation activities. It is part of OCP’s $13 billion Green Investment Program.
The program will also leverage the expertise of INNOVX, a multi-sectorial venture platform launched by Mohammed VI Polytechnic University (UM6P) that is dedicated to building innovative and sustainable businesses and ecosystems with a strong local impact.
IFC said the project aligns with its 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 help support the sustainable production of food.