Petrobras unveils strategy to re-enter fertilizer market
Nov, 28, 2024 Posted by Gabriel MalheirosWeek 202445
At a meeting of Brazil’s National Council for Fertilizers (Confert) on Wednesday (27), Petrobras reaffirmed its strategic commitment to revamp Brazil’s fertilizer industry. The company’s 2025-2029 strategic plan includes an investment of $900 million to reestablish and expand its presence in this critical sector.
The initiative focuses on reactivating industrial facilities and developing new technologies, with the potential to generate 13,000 direct and indirect jobs, aiming to boost Petrobras’ role in the fertilizer market.
Vice President Geraldo Alckmin, who chaired the meeting, emphasized Brazil’s pressing need to reduce its dependency on imported fertilizers by increasing domestic production. He also announced plans to include the fertilizer sector in the expansion of industries eligible for the Accelerated Depreciation program.
“This would apply to machinery, equipment, and components, allowing depreciation in two years instead of 15—a significant incentive to modernize the entire industrial base,” Alckmin explained.
The following chart uses DataLiner data to provide a general overview of fertilizer imports registered at Brazilian ports between January 2021 and September 2024.
Fertilizer Imports | Brazil | Jan 2021 – Sep 2024 | WTMT
Source: DataLiner (click here to request a demo)
Reactivating Four Plants
Wagner Felicio de Oliveira, Petrobras’ Executive Manager of Natural Gas Processing, highlighted key projects, including the Três Lagoas facility in Mato Grosso do Sul, which has the capacity to produce 3,600 tonnes of urea daily. Petrobras also plans to restart operations at its Araucária plant in Paraná, currently idle, with production expected to resume by May 2025.
Additionally, the Bahia and Sergipe fertilizer plants, currently leased to Unigel, are under negotiation for reactivation in early 2025. Together, these facilities could supply 35% of Brazil’s urea demand.
Another critical development is Petrobras’ integration into the Center of Excellence in Fertilizers and Plant Nutrition (CEFENP), overseen by the Ministry of Agriculture and Livestock. Petrobras has outlined three main research areas: organomineral fertilizers, composting, and biomass-based biofertilizers.
These initiatives aim not only to enhance Petrobras’ profitability and resilience but also to bolster Brazil’s food security and reduce its reliance on imported fertilizers.
The sector’s revival is seen as essential for strengthening domestic agricultural production, meeting growing demand for fertilizers, and promoting sustainable economic development.
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