At an event in Rio, multinationals showed interest in investing to reduce the country’s fertilizer deficit and increase the supply of natural gas
The potential of Brazilian agriculture has caught the world’s attention. Foreign investors are eyeing this market, which despite its strength, is still highly dependent on imported fertilizers, for example. Last week, businesspeople from 11 multinationals from different countries were in Rio and said they had plans to increase their investments in Brazil.
At the invitation of ApexBrasil (Brazilian Trade and Investment Promotion Agency), investors from the fertilizer, green energy and natural gas segments were in the country. They participated from Monday (29.Jul.2024) to Friday (2.Aug) of the River + Agriculturean international forum for sustainable agro-environmental development, held by the government of Rio de Janeiro.
One of the focuses of the Apex initiative was precisely to publicize the country’s need for investments in the fertilizer sector.
“We have worked hard to reduce Brazil’s dependence on fertilizers, especially green fertilizers, by attracting countries that produce more energy-efficient technologies, reducing the carbon footprint within Brazilian agribusiness.”stated the Investment Coordinator at ApexBrasil, Carlos Padilla.
Among the participating foreign companies, some are still studying business in Brazil and others have recently established themselves in the country. Companies that have been consolidated in the country for many years also participated, such as EuroChemheadquartered in Switzerland and with a branch in Brazil since 2016. It has already invested more than US$ 2.5 million in the country, with more than 20 plants operating in several states.
“This forum was a milestone because investments will be needed to reduce this international dependence, with this environmental and sustainability bias. The country invested heavily in technological development, but it needed to invest in more dialogue”he said Gustavo HorbachCEO of Eurochem for South America.
A Agro Atlasanother Swiss-based industry giant specializing in the production of nitrogen fertilizers with zero carbon emissions, has reinforced its plan to build its first nitrogen fertilizer factory, using green hydrogen, in Brazil. The plant will be built in Uberaba, Minas Gerais, with investments of around R$4.3 billion.
“As the Uberaba industrial plant enters new stages, we will look at other locations”said the executive Rodrigo SantanaDirector of Operations at Atlas Agro.
In Brazil for 3 years, the French group Helexia sells what it classifies as “energy security”. These are solar structures that can be installed in rural areas for off-grid solar generation, consumed directly by the agricultural producer. “We arrived without knowing who to talk to, but now we know”said the CEO, Aurelien Maudonnet.
At the other end, there are companies like the Swiss Housewhich announced the opening of an office in São Paulo. “We came to export our technology for the production of nitrogen fertilizers and urea to participate in Brazilian strategic efforts”he said Luca Pascoresponsible for Casale’s business in South America, a company that has been on the European market for 60 years and is a world reference in technology to benefit agribusiness.
This is also the case with Anodoxborn Swedish, but preparing to open its first office in Brazil – probably in Rio de Janeiro, according to Ricardo Uerharahead of Technology for the new company in the country, looking for partnerships. “It was a great opportunity to network intensely and discuss decarbonization solutions in the industry and large-scale investments in Brazil”Uerhara said. The company specializes in energy storage, such as non-flammable batteries.
The Brazilian government has been making an effort to facilitate foreign investments in the so-called agro-socio-environmental area to decarbonize industrial fertilizer production in Brazil. For the agribusiness sector, ApexBrasil has been working with biofertilizers, biogas, biofuels, machinery and equipment for small farmers.
“Our strategy involves increasing the supply of domestic natural gas, which increases competition, and bringing in cheaper and more competitive gas, especially for the critical fertilizer sector, which involves food security.”it says Fernando Matsumotogeneral coordinator of Infrastructure at the Ministry of Mines and Energy.
Currently, more than 87% of the fertilizers used in Brazilian agriculture are imported – out of an annual demand of 45 million tons/year. The goal of the National Fertilizer Plan is to reach a national production capable of meeting between 45% and 50% of domestic demand by 2050.
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