OCP Group bets on U.S. tech to decarbonise fertilisers

From the newsletter

Morocco-based OCP Group, a leading producer of phosphate-based fertilisers, has signed an agreement with U.S. climate-tech company Peregrine Hydrogen Inc. to co-produce clean hydrogen alongside sulphuric acid using Peregrine’s advanced electrolyser technology. The innovation is expected to lower fertiliser production costs while supporting OCP’s decarbonisation goals.

• Unlike conventional electrolysis that splits water into hydrogen and oxygen, Peregrine’s technology  routes the oxygen stream into reactions that generate sulfuric acid, a compound OCP already consumes in massive volumes for fertiliser production. 

• Peregrine’s electrolyser decarbonises phosphate fertiliser by producing renewable hydrogen and sulphuric acid on-site, replacing fossil-fuel hydrogen and lowering the fertiliser’s carbon footprint without changing existing production processes.

More details

• Under the agreement, OCP will fund the deployment of Peregrine’s hydrogen technology and purchase the products generated by the system. This support covers detailed design, performance trials and the construction of a pilot plant in Morocco’s phosphate mining hub of Khouribga. By leveraging existing sulphuric acid infrastructure the project aims to cut costs and accelerate deployment timelines.

• “Peregrine’s approach can deliver clean hydrogen at a significantly lower cost than existing methods,” said Matt Shaner, CTO of Peregrine Hydrogen. “Our partnership with OCP Group is a critical step toward deploying this technology at scale and accelerating decarbonisation in cost-sensitive sectors.”

• Fertiliser production is highly carbon-intensive, with conventional processes emitting approximately 1.3–1.5 tonnes of CO₂ per tonne of phosphate fertiliser, primarily from fossil-fuel-based hydrogen. By replacing fossil hydrogen with renewable hydrogen produced on-site, OCP can significantly cut these emissions, creating a lower-carbon supply chain for one of the world’s most essential agricultural inputs. Given the scale of global fertiliser use, Peregrine’s co-production technology could have a substantial environmental impact, reducing greenhouse gas emissions while maintaining production efficiency.

• The dual-production approach, generating both hydrogen and sulphuric acid,  creates a second revenue stream and lowers the marginal cost of hydrogen. For OCP this means two essential fertiliser inputs from one system, eliminating the need for separate facilities and supply chains. This results in lower capital and operating costs, immediate on-site hydrogen use, and a more affordable, lower-carbon fertiliser pathway. By reducing costs and risks, the model strengthens OCP’s ability to meet its sustainability milestones while supporting Morocco’s target of carbon neutrality by 2040.

• As one of the world’s largest phosphate fertiliser suppliers, OCP’s role ensures the impact of this partnership extends far beyond Morocco. If scaled across its operations, the technology could decarbonise fertiliser supply chains serving over 80 countries, linking African innovation to global food security. It also positions Morocco as a laboratory for cost-cutting hydrogen solutions with relevance far beyond fertilisers.

• For Peregrine, the agreement significantly reduces the financial risk of deploying an early-stage technology by providing both upfront capital and a guaranteed offtake for the hydrogen and sulphuric acid produced. This ensures predictable revenue, allows the company to focus on optimising performance, validates the technology under real industrial conditions and accelerates its entry into wider markets with greater confidence.

Our take

• OCP’s financial and commercial backing signals strong confidence in Peregrine’s early-stage technology, highlighting its potential to become a game-changer in decarbonising fertiliser production.

• The pilot plant will provide a critical demonstration of co-production at industrial scale, offering insights for replication in other cost-sensitive, hydrogen-intensive sectors across Africa, such as cement, steel and petrochemicals.

• Despite strong corporate support, Peregrine’s co-production technology faces operational and market risks. Scaling from pilot to industrial deployment will determine whether it can deliver promised cost and decarbonisation benefits.