Global Fund for Coral Reefs invests in Brazil-based Agrion to support sustainable agriculture and coral reef conservation

The Global Fund for Coral Reefs (GFCR), an investment fund managed by Pegasus Capital Advisors, has announced up to a $50 million investment in Brazil-based agriculture innovator Agrion Agrisolutions. The investment will be used to expand production and develop eco-friendly product lines of organo-mineral fertilizers that align with sustainable agriculture practices and circular economy principles. Agrion aims to minimize the environmental impact of Brazil's sugarcane industry, and ultimately other farming activities, by reducing nutrient runoff and keeping nutrients out of waterways while improving crop yields, providing a cost-effective solution while benefiting critical marine habitat and coral reef ecosystems. 

Brazil's sugarcane industry, which comprises over 400 mills and is economically vital, poses significant environmental challenges, particularly to its marine ecosystems. The extensive use of chemical fertilizers in sugarcane cultivation contributes to nutrient pollution in coastal waters, harming marine ecosystems and coral reefs. Sugarcane waste such as vinasse and filter cake can exacerbate these environmental impacts if not properly managed. The investment in Agrion supports sustainable fertilizer solutions that reduce chemical reliance and promote recycling of sugarcane waste and by-products, thereby also addressing climate change mitigation and adaptation.

"The excessive use of chemical fertilizers and pesticides in agriculture can lead to these inputs being washed into waterways, which in turn carry them out to sea, threatening coastal habitats and coral reefs," said Dale Galvin, managing director of the Global Fund for Coral Reefs, who will also join the board of Agrion. "Among the impact sectors financed by the Fund are the circular economy and pollution management, which is where Agrion fits in. By providing a destination for highly polluting sugarcane waste, then utilized by those farms and processors that generate the waste themselves, the company contributes to the resilience of marine ecosystems."

Agrion currently produces approximately 60,000 tons of valuable fertilizers using vinasse and filter cake sugarcane waste products at its facility in Tupaciguara, in collaboration with the bioenergetics company Aroeira. The planned expansion to up to 20 new plants over the next decade underscores GFCR's and Agrion's commitment to reducing pollution and expanding sustainable agriculture practices.¹

"The investment from the Global Fund for Coral Reefs brings us critical capital, expertise, and relationships, enabling us to expand our operations and develop new product lines with a focus on integrated production and a circular economy," said Ernani Judice, CEO and founder of Agrion. "Our goal is to increase productivity while reducing environmental impacts in the plant nutrition segment. With over ten memorandums signed for new factories and the potential for enormous growth in Brazil's sugarcane industry, we plan to grow operations in across the country and are particularly excited to work in the Northeast Region, where the only coral reef ecosystem in the South Atlantic exists, distributed along 3,000 km of the Brazilian Northeastern coast."

The investment will enable Agrion to enhance its production of gradual release organo-mineral fertilizers and other sustainable products to support Brazil's agricultural sector. By reducing the environmental footprint of sugarcane production, GFCR and Agrion are poised to make a positive impact on Brazil's marine ecosystems and coastal communities.

About Agrion Agrisolutions:

Created in 2019, Agrion is a Brazilian company formed by a pioneering technical and executive team in the organic mineral segment in the country, dedicated to developing innovative solutions and products for agriculture, in order to increase productivity in the sector. The vision is always preserving natural resources, reusing waste, avoiding unnecessary losses and producing locally.

Agrion develops, implements, operates and makes all the investments in industrial plants for solid organic mineral fertilizers with controlled release of nutrients, liquids and bio-inputs, built on the site of the sugar-energy plants, in a circular economy format, thus optimizing logistical costs and generating operational and commercial synergies. Part of the production is consumed by the plant and its sugarcane suppliers, and the surplus is sold on the local market.

¹ The investment and use of proceeds is subject to completing additional investment and impact documentation

Please contact Christina Xie at christina@agropages.com if you would like to share your company story or advertising in the upcoming 2024 Latin America Focus magazine.