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# Petrobras strengthens ties with YPF and Embrapa to advance low-carbon energy and fertilizer solutions

Publication Date: 01.10.2024, 12:00

New alliances focus on unconventional oil, biofuels, and domestic fertilizer production.

Petrobras, Brazil’s state-owned energy company, is strengthening its presence in both domestic and international markets through a series of strategic partnerships aimed at expanding its exploration and production (E&P) capabilities and advancing its low-carbon energy agenda. These initiatives align with the company’s broader decarbonization and diversification goals, outlined in its 2024-2028 Strategic Plan.

![](https://www.fertilizerdaily.com/wp-content/uploads/2024/09/petrobras_ypf-argentina-scaled.jpg)

In a notable move, Petrobras signed a Memorandum of Understanding (MoU) with Argentina’s YPF SA to explore joint opportunities in E&P. The agreement focuses on technological cooperation and could potentially extend beyond its initial three-year term. Both companies are currently partners in the Rio Neuquén Field, a key asset in the Neuquén Basin, known for its unconventional oil and gas resources such as shale oil and gas. Petrobras highlighted YPF’s expertise in exploiting these reserves, noting that it complements Petrobras’ own portfolio diversification efforts.

Additionally, Petrobras has entered into a cooperation agreement with the Brazilian Agricultural Research Corporation (Embrapa) to conduct technical studies aimed at producing low-carbon products, including biofuels, green chemicals, and fertilizers. This collaboration will enable both companies to contribute to Brazil’s National Fertilizer Plan by developing sustainable agricultural practices and innovative bioproducts. The focus will be on various raw materials, including soybeans, off-season crops like second-crop corn, and oilseeds such as Ethiopian mustard.

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![](https://www.fertilizerdaily.com/wp-content/uploads/2024/09/embrapa_-petrobras-scaled.jpg)

The agreement with Embrapa is part of Petrobras’s broader strategy to bolster the availability of domestic fertilizers and reduce reliance on imports. The partnership aims to develop products such as urea-based fertilizers, mixed fertilizers with improved granulometry, and other low-environmental-impact inputs. Embrapa’s role in establishing efficient agricultural protocols and offering agronomic expertise is crucial to the success of these efforts. The companies see this collaboration as vital for achieving the targets set by the Sectoral Plan for Adaptation to Climate Change and Low Carbon Emission in Agriculture.

Petrobras President Magda Chambriard emphasized that these efforts are not just aimed at diversifying the company’s energy sources but also at improving the efficiency and sustainability of Brazil’s agricultural sector. Embrapa President Silvia Massruhá echoed these sentiments, noting that resuming partnerships with Petrobras aligns with Embrapa’s goals of fostering bioeconomic development and contributing to both domestic and international policies on sustainable development.

![](https://www.fertilizerdaily.com/wp-content/uploads/2024/09/gerdau-scaled.jpg)

In another diversification effort, Petrobras signed an MoU with Brazilian steel producer and scrap metal recycler Gerdau S/A earlier in the month. This partnership will explore potential business opportunities, particularly in sectors that align with both companies’ decarbonization strategies.

Petrobras also announced the resumption of its fertilizer production operations at Araucária Nitrogenados S.A. (ANSA) in Paraná, which are expected to commence in 2025. The company’s return to this sector is driven by its strategic focus on enhancing domestic fertilizer availability, a critical aspect of its 2024-2028 Strategic Plan.

These initiatives highlight Petrobras’s commitment to leveraging technological expertise, enhancing its energy portfolio, and addressing key challenges in both energy production and agriculture, as it transitions towards a low-carbon future.

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