Yara invests in green hydrogen for fertilizers in Paraguay.
Partnership ensures sustainable production with distribution in Mercosur.
247 - Yara, a Norwegian multinational and one of the world's largest fertilizer producers, has reached an agreement with British developer Atome Energy to purchase the entire annual production of green hydrogen-based fertilizers to be manufactured at a new plant in Paraguay. This information was published by [source missing]. Globo Rural.
According to the report, the contract will have a minimum validity of ten years and foresees the construction of the unit in Villeta, a city near Asunción, with an estimated investment of US$630 million. Construction is expected to begin in the last quarter of 2025. The objective of the partnership is to supply Mercosur with fertilizers that have a lower environmental impact, strengthening Yara's sustainable portfolio.
Clean and large-scale production
The project will have the capacity to generate up to 260 tons per year of Calcium Ammonium Nitrate (CAN). The plant will be powered exclusively by renewable energy from hydroelectric plants. Green hydrogen, obtained through electrolysis, will be used as an input in the production of the fertilizer, significantly reducing the carbon footprint compared to conventional methods.
Yara highlighted that the supply of green CAN reinforces its strategy to meet the growing demand for low-carbon agricultural inputs. The company already has ongoing initiatives focused on less polluting fertilizers, but the partnership in Paraguay is seen as a significant step in expanding this line of business.
Strategic context for Mercosur
With the new plant, Paraguay is consolidating its position as a strategic hub for the production of sustainable agricultural inputs for the region. The agreement also aligns with the global movement towards energy transition and emissions reduction, an area in which Yara seeks to position itself as a world leader.
