October 17, 2024 – São Paulo – Atlas Agro, the Switerland-based company building the first nitrogen fertilizer facility using green hydrogen in Brazil, has been selected to join the Industrial Transition Accelerator (ITA) platform. The ITA was created at the COP28 Global Climate Action Summit in December 2023 by the United Arab Emirates, the United Nations Climate Change Program, and Bloomberg Philanthropies, to bring together global leaders from across the sector, financial institutions, and governments to unlock investments at scale, with the aim of achieving the rapid implementation of decarbonization solutions.
The announcement of the partnership and the launch of ITA in Brazil took place earlier today at the Federation of Industries of the State of São Paulo (FIESP) with global leaders in the energy transition and decarbonization space, private sector representatives, and Brazilian public officials.
One of the first to join this global effort by ITA in Brazil, Atlas Agro’s Uberaba Green Fertilizer (UGF) project was selected to collaborate on the acceleration and implementation of decarbonization solutions in the heavy industrial sectors globally. ITA and Atlas Agro will work together to develop solutions to address the primary challenges with energy transition and decarbonization projects.
The UGF facility will be built in Uberaba (MG) with a total investment of $1B USD. The project recently completed the pre-engineering phase, and was selected as part of ITA’s focus on expanding green investments in Brazil, decarbonizing agricultural activity and advancing Brazilian neo-industrialization.
The new facility is one of the most advanced initiatives in promoting food security and supplying consumers with products produced using low-carbon processes. Another important feature of the project is reducing dependence on imported inputs fertilizers.
“Today, Brazil imports more than 85% of the fertilizers used in agriculture, and is currently the largest fertilizer importer in the world. The ‘engine of the Brazilian economy’ cannot be at the mercy of possible supply restrictions and economic sanctions from markets involved in geopolitical tensions. It is in this context that Atlas Agro intends to contribute to the construction of sustainable fertilizer production facilities close to farmers, like the projects we have in Brazil and the United States”, said Rodrigo Santana, operations director at Atlas Agro.
“In addition to stimulating and developing local production of low-carbon fertilizers, our role is aligned with the objectives of the ITA platform, in the joint effort to promote the energy transition, especially in sectors that are complex to decarbonize, such as fertilizers,” he adds.
Pioneering green fertilizer in Brazil
The plant in Uberaba (MG) will use 100% clean energy from renewable sources, such as solar and wind, to produce green hydrogen, green ammonia and low-carbon nitrogen fertilizers. The factory will prevent the emission of more than 1 million tons of carbon equivalent annually into the atmosphere.
“ITA aims to support Brazilian and international companies that intend to invest in green industrial projects in Brazil, working with stakeholders across the industrial value chain and the Brazilian government to improve their viability and connect them with financiers. We are excited to partner with Atlas Agro to help take their Uberaba Green Fertilizer project to the final investment decision. This project is a great example of a green industrial project that can benefit both the climate and the Brazilian economy,” says Faustine Delasalle, executive director of ITA.
The Atlas Agro facility will have a production capacity of 530,000 tons of fertilizers per year to serve customers in the region. With green fertilizers produced in the country, it will be possible to reduce the carbon footprint of Brazilian crops by between 10 and 50%, depending on the type of crop, which is significant for placing Brazilian agribusiness at the forefront of global sustainable production worldwide.
“Brazil is already a global leader in food production. Now the country has the opportunity to also assume a global leadership role in the new sustainable fertilizer industry, promoting greater added value to Brazilian commodities, further increasing its competitiveness in the international environment, while fostering greater food security in a sustainable manner”, explains Santana. “With the support of ITA, we can contribute to the development of specific actions that can boost the scale and speed of sustainable projects in the country, as well as help heavy industry reach an inflection point for decarbonization”, concludes the Atlas Agro executive.
