Engie and Morocco's OCP renewables deal worth billions, says source
Agreement part of Moroccan hydrogen hub plans
Includes renewables, storage, green ammonia
Engie targets first FID in 2026
OCP's green budget is $13 billion through 2027
By Ahmed Eljechtimi and America Hernandez
RABAT/PARIS, Oct 29 (Reuters) -Morocco's phosphates and fertilizer giant OCP and French energy firm Engie ENGIE.PA signed a preliminary agreement on Monday for projects that could generate investments in Morocco worth up to 17 billion euros ($18 billion) in desalination, renewable energy and green hydrogen, a source close to the deal said.
The strategic partnership was signed during the visit by French President Emmanuel Macron to Rabat, as part of a series of business agreements following improved political ties between the two countries.
The joint development agreement covers research and innovation plus four projects: renewable energy production with flexible power storage, green ammonia production, infrastructure to connect the electricity to OCP sites, and a water desalination plant for agricultural use in regions where OCP operates, according to a statement by Engie.
In parallel, feasibility studies will be carried out on possible green hydrogen, e-methanol, and sustainable aviation fuel production, the statement said.
The renewable energy plans are expected to materialise in 2026, while the desalination and green hydrogen projects are forecast in 2028 and 2032 respectively, the source told Reuters.
Engie declined to comment on the investment figures, but said a spokesperson said the company targeted a final investment decision (FID) in 2026 on the renewable power and flexible storage projects, with the remaining plans to be started in the short to medium term.
"We will respect rigorous investment criteria to guarantee the profitability of our projects," the Engie spokesperson said.
A statement from Morocco's OCP gave no figures on the deal.
OCP plans to invest $13 billion in 2023-2027 to fully rely on renewable energy in its industrial processes and desalinated water, as it pushes for full carbon neutrality by 2040.
France's TotalEnergies TTEF.PA also announced it would study possible green hydrogen and ammonia production and export projects in Morocco during the presidential visit, as Rabat works to establish an export hub for renewable fuels the EU will need to import to reach its decarbonisation goals.
Reporting by Ahmed Eljechtimi and Michel Rose; additional reporting by America Hernandez in Paris; editing by David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
