OCP and Fortescue to partner in green energy, hydrogen and ammonia in Morocco

Date:04-11-2024

OCP Group, a global leader in plant nutrition and phosphate-based fertilizers, and Fortescue Energy, part of global green energy, metals and technology company Fortescue Ltd (Fortescue), announced a landmark Joint Venture (JV) in Morocco. This equal partnership aims to supply green hydrogen, ammonia, and fertilizers to Morocco, Europe, and international markets. It includes the potential development of manufacturing facilities and an R&D hub to advance the rapidly growing renewable energy industry in Morocco.

Fortescue and OCP Group, leaders in iron ore and phosphate respectively, are united in their goal to reach their emissions reductions targets. They share a common vision for the pivotal role of green hydrogen and ammonia in forging a sustainable future globally.

The partners have laid out proposed plans for four cornerstone projects in Morocco:

1. Large-scale integrated green ammonia and green fertilizer production capacity, including renewables, energy generation, electrolysis, ammonification and fertilizer production;

2. Manufacturing of green technology and equipment;

3. An R&D and Technology Hub, located alongside Mohammed VI Polytechnic University (UM6P) near Marrakech, to bolster the JV, the ecosystem and other players, with research in renewable energy, green hydrogen and minerals processing; and

4. Collaboration of corporate venture capital funds to drive investment in key technology advancements.

The partners’ objective is to supply green hydrogen and ammonia for use both as sources of green energy and in the manufacture of carbon-neutral and customized fertilizers that are accessible and affordable for farmers around the world.

Mostafa Terrab, Chairman and CEO of OCP Group, said: ″Our strategic partnership with Fortescue is a testimony to our joint commitment to decarbonisation, driving the development of cutting-edge facilities and delivering competitive renewable energy, products and technology.

This is a key step towards fulfilling our vision of simultaneously ensuring global food security and combating climate change.″

Dr Andrew Forrest AO, Fortescue Executive Chair and Founder said: ″Together, Fortescue and OCP will build a world-leading and globally competitive platform to accompany Morocco's journey into a green energy production, manufacturing, and industrial powerhouse.

Together, we will be a key originator and green corridor into Europe and to and from the Atlantic basin.

Morocco will be a major player in the global energy transition given it is home to some of the world’s most prospective wind and solar resources, two large coastlines, and is in close proximity to Europe and the Americas.

We are proud to partner with OCP, a global industrial leader, with a shared ambitious commitment to invest in renewable energy, products and technology to reduce global emissions.″

Fortescue Energy CEO, Mark Hutchinson added: ″OCP and Fortescue are fully aligned on their ambitions. We intend to create in Morocco one of the world’s leading integrated renewable energy, manufacturing, and technology enterprises, supplying not only a large and growing domestic market for green products, but also with the potential to supply other countries and continents.

This is a very significant moment for Fortescue, OCP Group and Morocco as we help revolutionize the way we power our planet and diversify the world’s future energy security, while creating thousands of jobs and industries in Morocco.″

These proposed projects will also leverage the expertise of INNOVX, a multi-sectoral venture platform that is dedicated to building innovative and sustainable businesses, and contributing to creating emerging ecosystems with a strong local impact.

Today’s agreement underlines OCP Group’s and Fortescue’s shared vision to help make Morocco a green energy production, manufacturing and industrial powerhouse, with significant long-term benefits for Morocco.

The venture is subject to customary closing conditions, including regulatory approvals.