Petrobras and Yara International have announced a strategic partnership aimed at reviving fertilizer production in Brazil and driving sustainable agricultural practices. The two companies have signed two agreements to collaborate on various fronts. They will collaborate on resumption of operations at Petrobras’s Araucária Nitrogenados S.A. (ANSA) facility and the development of low-carbon fertilizer solutions.

Petrobras plans to invest R$870 million ($150.8 million) to bring ANSA back to life. The Paraná-based facility has been dormant since 2020. It is slated to resume operations in May 2025, earlier than initially projected. This move is expected to reduce Brazil’s reliance on imported fertilizers and bolster domestic agricultural production.

The first agreement between Petrobras and Yara focuses on the immediate production of Automotive Liquid Reducing Agent (ARLA 32). Yara will supply high-quality automotive-grade urea as raw material to ANSA, enabling the resumption of domestic ARLA 32 production. This will help reduce Brazil’s dependence on imports and ensure a steady supply of this essential product for the automotive industry.

The second agreement centers on long-term collaboration in the areas of fertilizer and industrial product development, as well as energy transition initiatives. Both companies will work together to explore opportunities for reducing emissions, developing renewable and low-carbon fertilizers, and improving production efficiency.

Yara, a global leader in crop nutrition solutions, is committed to feeding the world responsibly and protecting the planet. The company is actively pursuing innovative solutions to reduce emissions from fertilizer production and promote sustainable agriculture. By partnering with Petrobras, Yara aims to contribute to Brazil’s efforts to achieve a more sustainable and resilient food system.

The partnership between Petrobras and Yara marks a significant step forward for Brazil’s fertilizer industry. By revitalizing ANSA and fostering innovation in fertilizer production, the two companies are poised to strengthen Brazil’s agricultural sector and secure a sustainable future for generations to come.

Petrobras (Petróleo Brasileiro S.A.) is a major Brazilian multinational energy corporation, primarily engaged in the exploration, production, refining, distribution, and commercialization of oil and natural gas. Headquartered in Rio de Janeiro, Brazil, the company is one of the largest integrated energy firms in the world and plays a significant role in the global oil industry.

Petrobras is renowned for its expertise in offshore oil production, particularly in deepwater and ultra-deepwater fields. It is one of the world leaders in deepwater exploration and operates some of the most technologically advanced oil rigs and drilling platforms. The company is a major producer of oil in Brazil, particularly in the pre-salt reservoirs located off the coast of Rio de Janeiro and São Paulo.