Brazil restarts fertilizer plant in push to reduce import dependence

Brazil's Petrobras has restarted its Bahia Fertilizer Plant, a move celebrated by President Lula to cut nitrogen fertilizer import reliance. The BRL 100M investment will create 3,600 jobs and meet 5% of national demand.

Brazil's state-run energy giant Petrobras has resumed fertilizer production at the Bahia Fertilizer Plant (Fafen BA) in Camacari, marking a major step in the country's effort to reduce dependence on imported nitrogen fertilizers.

According to Brasil 247, the restart of urea production was officially highlighted during a visit by Brazilian President Luiz Inacio Lula da Silva, Petrobras President Magda Chambriard and senior officials on Thursday.

Investment and Economic Feasibility

Speaking at a press conference in Salvador, Chambriard said the reopening forms part of Petrobras' 2026-2030 strategic plan focused on strengthening domestic fertiliser production and expanding the use of natural gas in industrial operations. The Bahia unit, inactive since 2019, had briefly operated under a private lease before shutting down again in 2023. Chambriard said the revival of the facility demonstrates Petrobras' commitment to rebuilding Brazil's fertilizer sector. She noted that lower natural gas costs and long-term industrial investments made the restart economically feasible, as reported by Brasil 247.

Production Capacity and Job Creation

Petrobras invested nearly Brazilian Real (BRL) 100 million in reactivating the plant, generating an estimated 3,600 direct and indirect jobs. The facility is currently producing around 1,300 tons of urea daily, enough to meet roughly 5 percent of Brazil's nitrogen fertilizer demand. According to Petrobras, urea produced at the plant will support key agricultural sectors including corn, sugarcane, coffee, wheat and cotton farming, along with livestock feed production.

Future Expansion and National Goals

Chambriard said Petrobras is also reviving other fertilizer projects, including Fafen Sergipe, Fafen Ansa and the Nitrogen Fertilizer Unit 3 in Mato Grosso do Sul. With all four facilities expected to be operational by 2028, Petrobras aims to supply nearly 35 percent of Brazil's domestic nitrogen fertilizer demand, reducing the country's reliance on imports.

Broader Energy Investments in Bahia

The company also announced broader investments in Bahia's energy sector, including USD 3.5 billion for oil and gas exploration projects over the next five years and additional investments in biodiesel production initiatives expected to create thousands of jobs. (ANI)

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