Norte Pioneiro do Paraná will host a new nitrogen fertilizer factory costing R$ 3 billion

The municipality of Sapopema, in the Pioneiro North of Paraná (PR), will host a new nitrogen fertilizer (urea) factory costing R$ 3 billion, which will make it one of the largest in the segment in Brazil. The details of the new venture were discussed earlier this week, in Curitiba, at a meeting between governor Carlos Massa Ratinho Junior and investors linked to Paranafert, which will be the management company.

The factory to be installed in Sapopema will have a production capacity of approximately 520 thousand tons of fertilizer per year, accounting for 7% of national consumption alone. There, another 13 thousand tons of sulfur and sulfur derivatives should also be produced annually.

The estimate, according to the businesspeople involved, is that around 800 direct jobs will be created in the future factory. The initial schedule foresees that the project will obtain all environmental licenses and other legal authorizations to be built in approximately one year. After this period, the work should take another two years to complete.

Upon learning details of the project, the governor celebrated the positive impact that the investment should have. “Paraná will have one of the largest nitrogen fertilizer factories in Brazil in Sapopema, which represents a solution for the entire agribusiness chain, helping the State and the Country to depend less on fertilizers that are produced in other countries, in addition to helping to development of Sapopema and neighboring municipalities”, stated Ratinho Junior.

Strategic input 

Due to the great demand from agribusiness, especially in Paraná, Brazil is currently the world's largest importer of fertilizers, with around 86% of its needs met by other countries. The input has become even more strategic for the sector due to the 180% increase in prices between 2021 and 2022 due to the rise in raw material costs, logistical problems caused by the pandemic and geopolitical conflicts involving large suppliers, mainly Ukraine.

For these and other reasons, the National Council for Fertilizers and Plant Nutrition (Confert) approved, in November 2023, the National Fertilizer Plan (PNF/2050). In the document, it was established that national fertilizer production must be able to meet 45% to 50% of national demand by 2050, which makes the new factory to be installed in Paraná even more strategic at a national level.

Sustainability 

A high-nitrogen compound, urea is one of the essential nutrients for plant growth and is widely used to increase agricultural productivity. When applied with appropriate management techniques, it contributes to the healthy development of plants with fewer applications, reducing environmental impacts such as the risk of groundwater contamination, while at the same time requiring less natural resources.

The production of nitrogen fertilizer is made from the gasification of mineral coal, which represents 25% of the production of this input worldwide. China, India and South Africa are among the countries that most use this technology today.

According to the state secretary for Sustainable Development, Everton Souza, who participated in the meeting, the production of fertilizers in Sapopema using this technique represents great economic potential for the State. “It is another opportunity to take advantage of the potential of the natural heritage that exists in Paraná, reducing dependence on imports,” he said.

“North Pioneiro will gain a lot from this investment and our role is to ensure that licensing is carried out in accordance with environmental standards and with agility so that businesspeople have the confidence to invest”, added Souza.

The president of the Water and Land Institute (IAT), José Luiz Scroccaro, informed that the state body has already started negotiations with the company to issue the environmental licenses necessary for the installation of the project in Sapopema. “We prepared the terms of reference with the company and asked the representatives for the RAS (Simplified Environmental Report) because the factory will use very advanced technology,” he said.

“We await details of the project, of how the input will be processed, so that we can proceed with the process of issuing the installation license”, added Scroccaro.