Morocco’s OCP, one of the world’s largest phosphates and fertilizer businesses, told Reuters it would invest $7 billion in an ammonia factory utilizing green hydrogen from renewable fuel to improve output and achieve low-carbon goals.
Due to the Ukraine war, state-owned OCP spent $2 billion on ammonia last year.
The war’s impact on supplies enhanced OCP’s global relevance, and its renewables push is crucial to Morocco’s industrial aim to cut energy imports.
OCP said it will acquire North American ammonia this year to address supply issues.
It aims to develop a Tarfaya facility in southern Morocco to strengthen its domestic supply chain.
In an email response to Reuters inquiries, the factory said it will produce 200,000 tonnes of ammonia by 2026, 1 million by 2027, and 3 million by 2032.
The $13 billion renewable energy strategy launched in December includes using hydrogen from solar- and wind-powered electrolysis to generate ammonia.
Morocco has invested extensively in renewables since it lacks oil and gas and has a tough relationship with neighboring Algeria.
The government intends to enhance desalination and renewable energy to 52% of installed electricity capacity from 38% by 2030 to help cities and agriculture cope with drought.
State-owned OCP told Reuters it will conduct tenders early next year to enhance desalination capacity at Safi and Jorf Lasfar on the Atlantic to use only desalinated water for industrial operations by 2027.
Its Tarfaya project supplies industrial establishments with 60 million cubic meters of water from a renewable-energy desalination plant.
