Some interesting reading on OCP. They are a major importer of ammonia and account for around 10% of the global ammonia trade. 21% of their purchases are on ammonia and they are "committed to carbon neutrality, scope 1 and 2, by 2030, and scope 3 by 2040. Part of this commitment to ensure carbon neutrality will be to consume green ammonia"
This following quote is particularly relevant to MNB and ties in with the significant interest that MNB reports for its green ammonia;
"Now that the hype around hydrogen is dying down, projects with a clearer eye on commerciality are coming to the fore – and fertiliser production presents one such opportunity"
We know that MNB's project is at the top of the list globally in terms of commerciality.
Very exciting times ahead.
"OCP calls first mover advantage in move to green ammonia"
"Now that the hype around hydrogen is dying down, projects with a clearer eye on commerciality are coming to the fore – and fertiliser production presents one such opportunity.Morocco’s OCP Group consumes substantial amounts of ammonia in order to produce its fertiliser. The company has grand plans, involving a $13 billion capital expenditure, to ramp up renewable energy production and green hydrogen.The company consumed around 1.6 million tonnes of ammonia in 2019. Spending on ammonia in 2021 accounted for around 21% of its purchases that year. It is also a substantial electricity consumer, at around 4 TWH, or 10% of Morocco’s total consumption.The aim, OCP head of corporate strategy Iliass El Fali said, was to be “as green as possible. We’ve committed to carbon neutrality, scope 1 and 2, by 2030, and scope 3 by 2040. Part of this commitment to ensure carbon neutrality will be to consume green ammonia. We are the largest ammonia importer in the world accounting for roughly 10% of global trade.”OCP has recently completed a period of growth, where it tripled its fertiliser capacity with an $8bn programme, over 10 years. “We’re now launching a new phase, with $13bn of capex, which began last year. This will scale up our sustainability agenda.”In addition to investing in renewables and electrolysis, OCP also aims to produce its own desalinated water.
In 2022, El Fali explained to Energy Voice, imports cost $1.9bn. Furthermore, costs varied wildly for grey ammonia. At one point it reached $1,200 per tonne, before dropping to $300 and is currently around $600.“Today, green ammonia is still more expensive than grey, at around $700 per tonne. But using domestically produced green ammonia could act as a sort of hedge and costs will come down. It will be around $400-450 per tonne in 2035,” El Fali said.Furthermore, grey ammonia costs do not include any carbon prices, which may become more important when bearing in mind factors such as the Carbon Border Adjustment Mechanism (CBAM).
OCP is investing in start ups and research partnerships in order to drive down costs.“There will be bottlenecks, in solar, electrolysis, wind turbines and so on. But there’s a first mover advantage. If we start first, we can build solid partnerships to help meet our needs and support transition in the region. The focus us to engage with partners and technology. This scale up is an opportunity. We’re open to discussions.”
More here;
https://www.energyvoice.com/renewables-energy-transition/hydrogen/africa-hydrogen/542571/ocp-calls-first-mover-advantage-in-move-to-green-ammonia/
(20min delay)
