Engie and Morocco's OCP renewables deal worth billions, says source

By Ahmed Eljechtimi and America Hernandez

October 29, 20248:08 PM GMT+7

RABAT/PARIS, Oct 29 (Reuters) - Morocco's phosphates and fertilizer giant OCP and French energy firm Engie (ENGIE.PA), opens new tab 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), opens new tab also announced, opens new tab 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

Source: Reuters