Petrobras shared plans to boost fertilizer production with massive $1.17 billion investment

Petrobras has announced a significant investment strategy, allocating R$6 billion ($1.17 billion) to its fertilizer segment over the next five years. This move includes R$870 million ($159.15 million) earmarked specifically for restarting the Araucária Nitrogenados SA (ANSA) fertilizer plant in Paraná, with operations expected to resume in May 2025.

The announcement came during a ceremony attended by Petrobras CEO Magda Chambriard, Brazilian President Luiz Inácio Lula da Silva, and other key stakeholders. This initiative is part of a broader R$60 billion ($11.7 billion) investment in the Brazilian refining industry, with R$3.2 billion ($624 million) dedicated to the Presidente Getúlio Vargas Refinery (Repar) in the upcoming 24-28 planning period.

President Lula emphasized the strategic importance of Petrobras not just as an oil company but as a pivotal entity in Brazil’s transition to becoming a leader in biofuels and renewable energy. He highlighted the role of Petrobras in fostering innovation and development within the country.

The ANSA facility, currently gearing up for operation by contracting services and purchasing materials, is expected to achieve a local content rate of over 85%. The plant’s annual production capacity includes 720,000 tons of urea, representing 8% of the market, 475,000 tons of ammonia, and 450,000 m³ of Automotive Liquid Reducing Agent (ARLA 32).

Additionally, the nearby Repar facility will see R$3.2 billion ($624 million) invested in maintenance and new projects aimed at increasing S10 diesel production and improving energy efficiency. This initiative will also help reduce the carbon footprint of operations while enhancing production capacity to meet market demand.

Repar continues to innovate with the production of Diesel R, a sustainable fuel blend that reduces emissions by at least 60% compared to traditional mineral diesel by incorporating plant-derived raw materials like soybean oil.

The plant and its investments not only promise to enhance Brazil’s self-sufficiency in fertilizer production but also reflect Petrobras’s commitment to sustainable energy and innovation.