The nitrogen fertilizer factories (FAFENs) in Bahia and Sergipe have started operations, marking a significant development for the fertilizer industry in Brazil’s Northeast. The plant in Sergipe began producing ammonia at the end of December 2025 and started urea production on January 3, 2026. The Bahia facility completed maintenance last month and is now undergoing commissioning, with urea production expected to start by the end of January.
Each factory has received an initial investment of R$ 38 million. Together, they are expected to generate 1,350 direct jobs and 4,050 indirect jobs. The Sergipe unit, located in Laranjeiras, can produce up to 1,800 tons of urea per day—representing about 7% of Brazil’s national market. In Bahia, the Camaçari plant will be able to produce 1,300 tons per day, accounting for roughly 5% of the market. Operations at FAFEN-BA also include ammonia and urea maritime terminals at Aratu Port in Candeias.
According to Petrobras’ Director of Industrial Processes and Products William França: “The two FAFENs, together with Araucária Nitrogenados S.A (ANSA), another national fertilizer factory owned by Petrobras in Paraná, will account for 20% of all urea demand in Brazil. Our expectation is to increase national production to 35% over the next few years with a new plant under construction in Mato Grosso do Sul.”
The nitrogen products from these plants are intended mainly for agricultural use—including as fertilizers and feed additives for ruminants—but may also serve industries such as textiles, paints, paper, and pulp. By producing ARLA 32 (Automotive Liquid Reducing Agent), Petrobras is contributing a key product for reducing vehicle emissions and supporting environmental preservation.
William França emphasized: “Currently, all urea consumed in Brazil is imported. With the resumption of domestic production, Petrobras expands supply within the local market, reduces external dependence and strengthens the agribusiness value chain.” He added that this strategy uses natural gas as its main raw material: “It expands alternatives for allocating gas produced by the company and generates value for industry, agriculture and the country.”
