Brazil’s agricultural sector is undergoing a major transformation, marked by two groundbreaking initiatives that promise to reshape the country’s energy and fertiliser landscapes. On October 29, 2025, Brazil celebrated a significant milestone as its agricultural powerhouse secured long-term potash offtake agreements, covering a remarkable 91% of the planned 2.4 million ton annual capacity of the Autazes project in Amazonas state. Meanwhile, just a day earlier, energy distributor Ipiranga announced an unprecedented partnership to build a biodiesel distribution base adjacent to the 3tentos plant in Vera, Mato Grosso—Brazil’s largest agribusiness hub. Together, these developments signal a strategic pivot towards regional self-sufficiency in essential agricultural inputs and cleaner energy, with far-reaching implications for South America’s largest economy.
The Autazes project stands out as South America’s largest planned potash operation, a crucial step for a country that has historically relied on importing over 10 million tons of potash annually. According to market reports, these imports cost Brazil between $4-6 billion each year, with transportation adding another 15-25% to delivered costs. The new offtake agreements—secured with three primary partners: Kimia Solutions (700,000 tons annually, or 23-32% of output, via Bulkfertz), Amaggi, and Swiss trading firm Keytrade—will ensure domestic production addresses these costly dependencies. As the agreements cover more than 2 million tons annually, they represent the most comprehensive offtake strategy for potash development in South America.
"The brazil potash offtake deal structure demonstrates how sophisticated commercial planning enables billion-dollar mining developments while reducing import dependency," noted industry analysts. The take-or-pay model at the heart of these agreements guarantees minimum purchase volumes, market-linked pricing, and phased delivery schedules. This not only provides the financial backbone needed for massive mining projects but also shifts market risk from producers to buyers—an arrangement that’s become essential for securing project financing and construction.
On the ground, the economic impact is already being felt. The Autazes project, which began construction in September 2024, is poised to catalyse job creation in mining and processing, spur infrastructure development, and boost economic activity in Amazonas state. With its strategic location near Brazil’s agricultural heartland, the project offers cost-competitive advantages by reducing transportation expenses and ensuring stable, predictable fertiliser costs for farmers. The financing structure backing this billion-dollar venture is equally robust, combining senior bank facilities secured by offtake revenues, export credit agency support, and participation from development finance institutions.
Environmental stewardship is another cornerstone of the Autazes project. Modern potash operations in Brazil are required to meet stringent regulatory standards, including comprehensive environmental impact assessments, public consultation periods, and ongoing monitoring. The project integrates water management systems using closed-loop processes, progressive land rehabilitation, biodiversity protection measures, and active community engagement—especially important given the sensitive Amazonian context and the rights of indigenous communities.
Technological innovation is also set to play a pivotal role. The Autazes project plans to deploy IoT sensor networks for real-time monitoring immediately, predictive analytics for maintenance within 12-18 months, autonomous mining equipment in 2-3 years, and AI-driven process control in 18-24 months. These advances are expected to boost operational efficiency, improve product quality, and reduce costs, keeping Brazil competitive in a sector dominated by global giants like Nutrien and Mosaic.
But the transformation doesn’t stop at fertilisers. On October 28, 2025, Ipiranga announced a landmark partnership with 3tentos to build a biodiesel distribution base in Vera, Mato Grosso. The new base, constructed on a 30,000-square-meter area provided by 3tentos under a long-term loan-for-use contract, is designed to streamline fuel logistics in Brazil’s most productive grain region. The facility will be connected to the 3tentos plant by a 1-kilometer pipeline, eliminating the need for truck transport and slashing freight costs by an estimated R$0.02 to R$0.04 per liter.
"Being close to a biofuel production base, especially biodiesel, has great value because you eliminate freight 'legs.' Today biodiesel travels a lot in Brazil to make the blends [of biodiesel with diesel]," Ipiranga CEO Leonardo Linden told Valor. He added, "There are many logistics legs that make this inefficient." The new base, with an annual capacity to move 360 million liters of fuel (including biodiesel, diesel, and gasoline) and static tank capacity of 3 million liters (expandable in the future), is expected to serve customers within a 300-kilometer radius across more than 40 municipalities. The first phase is set to be inaugurated in 2027.
This initiative is particularly timely as the Future Fuel Law is set to increase the biodiesel content in diesel to 20% by 2030, creating a predictable and expanding market for biofuels. "Today the biodiesel market is more consolidated in Brazil," noted 3tentos CEO João Marcelo Dumoncel, highlighting the sector’s growing stability and attractiveness for investment. The Vera complex itself is undergoing major expansion, with soybean crushing capacity rising from 3,000 to 4,800 tonnes per day by 2026, and biodiesel production expanding from 1 million to 1.5 million liters per day. Similar upgrades are planned for 3tentos’s Ijuí plant in Rio Grande do Sul.
The synergy between these two developments—potash production and biodiesel distribution—reflects a broader strategy to enhance Brazil’s agricultural self-sufficiency and reduce vulnerabilities from global market volatility and geopolitical tensions. Agribusiness customers already account for about 30% of Ipiranga’s fuel consumption, and the new base is expected to significantly improve supply efficiency in the Central-West, the country’s largest grain-producing region. "We consider this movement to bring production closer to distribution very promising. The gains are very clear for all of us, in the country’s largest grain-producing region, which is the Central-West," said Luiz Osório Dumoncel, chair of 3tentos.
Both the Autazes potash project and the Vera biodiesel base are underpinned by sophisticated risk management strategies, diversified customer portfolios, and innovative financing structures. These projects not only promise to reduce Brazil’s reliance on imports but also catalyse regional economic development, infrastructure investment, and technological advancement. As construction progresses and new capacities come online, Brazil is poised to set a new standard for agricultural and energy resilience in Latin America.
With global fertiliser and energy markets facing increasing volatility, Brazil’s commitment to domestic production and efficient distribution may well serve as a blueprint for other agricultural economies seeking to secure their own futures. The country’s dual push in potash and biodiesel underscores a decisive shift away from dependency and towards a more sustainable, self-reliant model—one that could redefine South American agriculture for decades to come.
