This report “Decarbonizing the Ammonia Fertilizer Supply Chain in Brazil” published by RMI highlights that Brazil has a significant opportunity to transform its fertiliser sector by developing domestic, low-carbon production capacity, an opportunity that will require coordinated leadership from policymakers, industry, and investors. This transformation would strengthen agricultural resilience, reduce exposure to volatile global markets, and position Brazil as a leader in sustainable fertilizer production.
In light of this opportunity, Brazil’s National Fertilizer Plan (PNF) includes 2030 targets to increase sustainability, efficiency, domestic production capacity, and market expansion. In spite of these goals, key challenges to scaling a robust domestic fertilizer supply chain remain; namely, high up-front capital costs for renewable projects, high natural gas prices for conventional production, energy infrastructure limitations, and an absence of clear standards, certification systems, and financial instruments for low-carbon fertilizers.
Brazil’s endowment of renewable energy resources provides an opportunity to progress the PNF domestic production goals with cost-competitive low-carbon fertilizer production. Analysis indicates green ammonia and fertilizer prices are cost-competitive with blue and grey in some locations with favorable conditions. There is a clear need for bold, early action with effective levers to overcome the challenges and bring this opportunity to reality to transform Brazil’s fertilizer supply from import-dependent to self-sustaining, competitive, and climate-aligned.
Access the report here