Petrobras Revives Fertilizer Production, Aims to Boost Domestic Supply

In a significant move to reduce Brazil's dependence on foreign nitrogen fertilizers, Petrobras, the country's state-owned energy giant, has resumed operations at the Bahia Fertilizer Plant (Fafen BA) in Camacari. This development, celebrated in a ceremony featuring Brazilian President Luiz Inacio Lula da Silva and Petrobras President Magda Chambriard, highlights a ambitious step toward strengthening domestic production.

During a press briefing in Salvador, Chambriard elaborated on Petrobras' 2026-2030 strategic vision, which emphasizes bolstering local fertilizer manufacturing and enhancing the use of natural gas in industrial processes. The Bahia facility, which had faced operational challenges since 2019 and was briefly under private lease, is now set to contribute significantly to the country's fertilizer capabilities, thanks to more affordable natural gas and long-term industrial investments.

With an investment of nearly BRL 100 million, the reactivated facility is generating around 3,600 jobs and producing 1,300 tons of urea daily. This output meets approximately 5% of Brazil's nitrogen fertilizer needs, vital for key agricultural sectors such as corn, sugarcane, and coffee. Petrobras is also reviving other projects to fulfill 35% of domestic nitrogen fertilizer demand by 2028, while committing $3.5 billion to energy projects in Bahia over the next five years.

(With inputs from agencies.)