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Engie and Morocco’s OCP renewables deal worth billions, says source
Published by Jessica Weisman-Pitts
Posted on October 29, 2024
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 29, 2024
2 min readLast updated: January 29, 2026
By Ahmed Eljechtimi and America Hernandez
RABAT/PARIS (Reuters) – Morocco’s phosphates and fertilizer giant OCP and French energy firm Engie 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 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)
Renewable energy is energy generated from natural resources that are replenished at a faster rate than they are consumed, such as solar, wind, and hydropower.
Green hydrogen is hydrogen produced using renewable energy sources, which makes it a clean alternative to fossil fuels for various applications.
Investment refers to the allocation of resources, usually money, in order to generate income or profit over time.
Sustainability is the practice of meeting current needs without compromising the ability of future generations to meet their own needs, often focusing on environmental, social, and economic factors.
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