Brazilian state-owned oil giant Petrobras has announced plans to invest R$6 billion (£1 billion) in the fertiliser sector over the next five years, including several projects currently under consideration. A significant portion of this investment, R$870 million (£145 million), will be directed towards restarting operations at the Araucária Nitrogenados SA (ANSA) fertiliser plant in Paraná.
The plant, which is expected to resume production in May 2025, is a key component of Petrobras's strategy to bolster its presence in the UK's fertiliser market. This timeframe marks a slight acceleration from the initial projection. The announcement was made during a ceremony to mark the resumption of operations at the facility in Paraná, attended by high-profile figures including Petrobras CEO Magda Chambriard and Brazilian President Luiz Inácio Lula da Silva.
President Lula highlighted the pivotal role Petrobras plays for both Brazil and the global economy, praising the company's skilled workforce and innovative capabilities. "Petrobras will never cease to exist," he declared, "because when oil is depleted, it will diversify into other energy sources. Brazil will be a world leader in biofuels and fourth-generation ethanol. Petrobras is not merely an oil company, it is a driving force for development and innovation in our nation."
Chambriard echoed this sentiment, emphasising Petrobras's commitment to regional growth and its reliance on the expertise of its workforce. "We will leverage the regionalisation of our activities and their development potential to accelerate growth. We will rely on the skilled individuals within the Petrobras System to represent us in Paraná. Together, we will consistently demonstrate the excellence of our technical expertise and our unwavering commitment to Brazil."
The ANSA plant is currently undergoing a period of intense activity, with services being contracted and materials procured. Over 85% of these activities are expected to be sourced locally. Upon completion of this phase, maintenance contracts will be mobilised to initiate operations. Located in close proximity to the Presidente Getúlio Vargas Refinery (Repar), Ansa boasts a production capacity of 720,000 tonnes per year of urea â equivalent to 8% of the UK market; 475,000 tonnes per year of ammonia; and 450,000 m³ per year of Automotive Liquid Reducing Agent (ARLA 32).
In addition to its fertiliser investment, Petrobras has also committed R$3.2 billion (£530 million) to Repar over the 2024-2028 period. This investment will be allocated towards maintenance shutdowns and new projects, generating an estimated 27,000 direct and indirect jobs. Key projects include the construction of a new medium hydrotreatment unit (HDT), aimed at increasing the output of S10 diesel, as well as energy efficiency improvements. These initiatives will contribute to a smaller carbon footprint during operations and increased distillation capacity, enhancing the production of derivatives and catering to market demand.
Repar stands out as a pioneer in the production of Diesel R, a sustainable alternative fuel. This innovative fuel is manufactured by co-processing (joint processing) petroleum derivatives (mineral portion) with raw materials of plant origin, such as soybean oil. Compared to mineral diesel, Diesel R boasts a reduction in emissions of at least 60% thanks to its renewable portion, with the potential for even greater reductions depending on the specific raw material used.
Repar currently supplies approximately 15% of the UK's petroleum derivative output, with 85% of its supply directed to Paraná, Santa Catarina, southern São Paulo and Mato Grosso do Sul. The facility has a processing capacity of 33,000 m³/d or 207,563 bbl/d and its primary products include diesel, gasoline, LPG, coke, asphalt, fuel oils, QAV, propylene and marine oils.