Research, innovations

and education

The Company’s innovations in fertilizer production are a sustainable development driver in agriculture and make a meaningful contribution to strengthening cooperation for food security.

PhosAgro Group seeks to ensure efficient and safe agricultural production and develops innovative fertilizers while also working hard to minimise the environmental impact of mineral fertilizer application and production. In doing so, the Company relies on Russian and international experience and leading research and production practices.

Our Strategy to 2025 envisages efforts to increase the share of innovative products, develop technology and production, and ramp up potential for cooperation with stakeholders and partners in the area of innovation and research.

In 2023, the Company developed the Import Substitution Strategy and the Import Substitution Programme, ensuring systematic migration to domestic software platforms and the implementation of key infrastructure projects.

GRI 3‑3

Our innovation, product development, and research and education management system is seamlessly integrated into the overall management framework covering all Company processes.

PhosAgro Group runs the Samoilov Scientific Research Institute for Fertilizers and Insectofungicides (NIUIF), Russia’s only institute specialising in this area.

PhosAgro Innovation Centre was established in 2018 to create cutting‑edge products and technologies in partnership with research institutions in Russia and abroad. The NIUIF and PhosAgro Innovation Centre bring together world‑class researchers, engineers, and experts from various areas to address the most complex operational issues as well as applied and fundamental research problems.

The Group actively cooperates with the Ministry of Agriculture, the Russian Academy of Sciences, federal research centres, universities, innovation funds, and international R&D organisations (University of Belgrade and Brazil’s Federal University of Lavras), along with recognised international organisations with a view to providing broad support to humanitarian and research‑intensive projects.

Apatit’s IT Department established a division for developing artificial intelligence solutions to drive the integration of advanced AI technologies into the Company’s key business processes. The team is focused on three core areas: machine learning, video analytics, and generative AI. The computing capabilities are supported by a GPU‑powered server cluster housed by the Company’s corporate data centres.

Research and education fall within the remit of the Technical Development Department and are discussed at the meetings of the Strategy and Sustainable Development Committee of the Board of Directors. These matters are subject to an annual review by the Board of Directors.

Improvement of ore extraction and processing

The Company is developing key technical solutions for mining and processing diatomite with a view to producing its own vanadium sulphuric acid catalyst. In 2024, we developed as‑built documentation for the design and construction of the vanadium sulphuric acid catalyst plant.

In collaboration with the Kolsky Research Centre of the Russian Academy of Sciences, we continue to explore ore beneficiation and ways to increase production volumes. The Company is developing a roadmap for making products from low‑grade and off‑balance ores, tailings of ANBP‑1, 2 and 3, and slurry discharges. In 2024, we collected samples and transferred them to the Kolsky Research Centre so that it could develop the concentrate for further research into production options.

To enable the mining of a block pillar under the Saami pit, we continue to divert the Gakman and Loparskaya rivers.

The project to develop the reserves of the Rasvumchorr Plateau deposit through underground mining is now subject to design supervision and construction control, with the diversification of coolants at the main ventilation and hot‑air heating unit (use of liquefied natural gas at the Rasvumchorrsky mine) designed to improve energy efficiency and reduce pollutant and GHG emissions.

Production efficiency improvements and introduction of elements of circular economy

Improving the efficiency of using resources, including water, and increasing the energy efficiency of production processes are crucial tasks for the Company.

With the loads of process systems increased following the upgrade of wet‑process phosphoric acid production units in Cherepovets, Volkhov and Balakovo, we reduced our specific power consumption.

The NIUIF team completed a broad range of tasks related to increasing performance, including the development of draft technical specifications and the validation of measurement methods for food grade and technical grade purified phosphoric acid and feed phosphates, and state registration of the Company’s new fertilizer grades.

One of the standout projects involves the development of technical solutions to extend the maintenance intervals for sulphuric acid systems to three years. In 2024, we developed key technical solutions for the tail gas treatment unit designed to reduce sulphur dioxide content in emissions from sulphuric acid systems.

Another important strategic task completed in 2024 was the development of key technical solutions for the liquid sulphur dioxide production unit.

Implementation of a domestic automated enterprise management system and automated process control system

PhosAgro Group is a member of the Chemistry and Pharmaceuticals industrial competency centre (ICC). In this capacity, it acts as the anchor customer for the projects to introduce a domestic automated enterprise management system and automated process control system. These projects are co‑funded by the state through the Skolkovo Foundation and are being implemented at the Cherepovets production site.

In 2024, the development of the automated enterprise management system was completed, and now it is being piloted. The new enterprise management system offers comprehensive data collection tools and data visualisation across the entire range of processes, calculates technical and economic indicators, and generates production reports. The platform architecture is based exclusively on domestic solutions. The project involved the creation of more than 800 mnemonic diagrams and collection of over 60,000 indicators from 33 sources. To populate the system with data, experts from PhosAgro’s Engineering Centre developed special software solutions to automatically transfer calculations and mnemonic diagrams from the old system to the new one. The platform’s scaling to other production sites is slated for 2025–2026 following a test run and performance analysis.

The second project aims to develop an automated process control system and implement it at continuous chemical production sites. Launched in late 2022, the project focuses on replacing imported software and hardware with domestic products.

The automated enterprise management and process control systems are of crucial importance for chemical production, as they are indispensable for today’s management approaches and high level of process automation. Migration to domestic software ensures not only technological independence, but also the stability of production processes.

Import substitution project to replace PhosAgro’s robotisation platform

The Company presented a project on the import substitution of its business process robotisation platform, which covers all of the Group’s companies. The project to introduce a domestic platform was launched back in 2023. The application of robotics led to a 34% reduction in the time it takes to prepare corporate reports. Thanks to the project, the Company migrated some 50% of its business processes to the Russian platform. The development approach was standardised through the introduction of a coding agreement, best practices, version control systems and code compliance checks. This helps shorten implementation time, reduce maintenance costs, and improve business transparency.

Other import substitution projects completed in 2024:

PhosAgro’s electronic HR document management system

Apatit’s electronic HR document management system (EPDMS) powered by WSS Docs started operating in a pilot mode in April 2024. As a result, the key HR documents that are essential for employees’ daily work or are generated as part of other processes were fully digitised.

With the new system, employees can produce HR documents from a desktop, a shared workstation or a mobile app. The process was streamlined to just a few steps: all the employee has to do is fill out a few fields in WSS Docs, and then the required document will be generated automatically. WSS Docs also supports electronic signature keys, which are issued, renewed and revoked by PhosAgro’s Certification Authority.

PhosAgro Group’s product mix comprised over 58 grades of fertilizers of all types in 2024. The Company’s Strategy focuses on developing products that address the evolving challenges faced by farmers, including solutions mitigating the impact of climate change. PhosAgro Group is currently preparing an updated version of its Development Strategy to 2030, which will encompass the production of:

• micronutrient fertilizers and NP/NPK blends with micronutrients and mesoelements;
• water‑soluble fertilizers;
• feed additives and feed phosphates;
• biological and biologised fertilizers;
• biological crop protection agents;
• growth enhancers.

The primary focus of all of these solutions is biologisation of agriculture, improvements in the quality of agricultural products, reduction of the environmental impact of chemicals in intensive farming, and introduction of specialised niche products, which will bolster crop yields and improve product quality, while also mitigating the climatic and environment impact.

Development of new fertilizers

Development of biologised fertilizers

In 2024, PhosAgro Group continued its research into the impact of biologisation on GHG emissions from fertilizers. In partnership with the Russian State Agrarian University – Moscow Timiryazev Agricultural Academy, the Caspian Federal Agrarian Research Centre of the Russian Academy of Sciences (CFARC of RAS) and Ulyanovsk Research Institute of Agriculture (URIA, a branch of Samara Federal Research Centre of the RAS), the Company ran in‑depth trials to study nitrogen emissions resulting from the use of both traditional mineral fertilizers and their biologised alternatives. The trials took place in the Astrakhan Region on irrigated lands typical for arid areas of risky farming, which are especially vulnerable to climate change and associated stress factors for plants and soils. Additional trials were carried out in the Ulyanovsk Region on chernozem soils with average national crop yield levels and without irrigation. The trials clearly demonstrated that biologised fertilizers contributed to an overall increase in biomass and a notable boost in marketable crop yield.

The trials demonstrated that using the Company’s biologised products (compared to traditional fertilizers) led to higher crop yields at the same application rate. Notably, these products also stimulated greater straw biomass production. When incorporated into the soil, this additional biomass can contribute to soil carbon accumulation.

In 2025, the Company plans to conduct second‑year interregional trials on similar crops. These trials will help expand and enrich the data array, offering deeper insights into how environmental and climatic factors influence nitrogen emissions from fertilizers applied at fields. They will also support the development of a mathematical model to predict and assess N₂O emissions.

Currently, carbon footprint calculations rely on standardised emission factors and the IPCCIntergovernmental Panel on Climate Change. methodology, according to which the rate of fertilizer‑related nitrous oxide (N₂O) emissions is estimated at 1% of the calculated nitrogen content in a specific fertilizer grade. However, the Company’s field experiments suggest that actual emissions may be lower. The emission rate depends on factors such as the dosage of nitrogen‑based fertilizers, fertilizer form, composition of the nutrition system, crop type, soil characteristics and climate conditions (see the table N‑N₂O emission factor for different fertilizers).

An important task planned for 2025 will consist in integrating the results of biologised fertilizer trials and the data on nitrous oxide emissions into PhosAgro’s Agro Calculator. This metric will be synergised with other parameters to help calculate customised plant nutrition systems. With the Agro Calculator, users will be able to evaluate the carbon footprint of agricultural products and streamline relevant nutrition strategies to minimise emissions, which is of particular importance for products exported to markets with GHG border tariffs.

The Company plans to launch full‑scale production of biologised mineral fertilizers in 2025, with the first batch scheduled for release in 2026. The product line will include N, NP and NPK fertilizers, allowing for smooth integration of a biological component into the existing nutrition system through replacement of the traditional counterpart with a view to ensuring seamless transition to biologised farming. The technology enables the application of high concentrations of biologically active strains that are resilient to concentrated inorganic salts.

Manufacturing and sales of new products

In 2024, we supplied to agricultural producers 13.980 tonnes (vs 5.1 tonnes in 2023) of the ApaSil adaptogen, a product developed by PhosAgro's Innovation Centre.

Developed by PhosAgro’s Innovation Centre, ApaSil is designed for seed pre‑treatment and foliar application on a wide range of agricultural crops and ornamental plants. Field trials in different regions and on different crops have shown that this product helps plants cope with the stresses associated with drought and diseases.

Between 2019 and 2024, PhosAgro’s Innovation Centre conducted a comprehensive analysis to identify biological solutions suitable for Russian agriculture. Based on this research, the Group will expand its product range in 2025 with biological agents developed by partner companies such as Innopraktika, Bisolbi Plus, Biona Group, and Flora‑Si. The products will be sold through a network of 16 official regional distributors.

Development of feed additives

In 2024, PhosAgro Innovation Centre and the Mendeleyev University of Chemical Technology developed prototypes of protected feed grade urea, offering a safe and efficient source of non‑protein nitrogen for cattle. Jointly with the Skryabin Moscow State Academy of Veterinary Medicine and Biotechnology, we conducted production trials of the EnzymesporinWhen applied jointly with monocalcium phosphate. feed additive, which increased the live weight of calves by 8.7%. The products will be manufactured using our unique proprietary technology, and in 2025 we plan to patent and develop the technology to produce this additive.

In 2025, we plan to join efforts with the Skryabin Moscow State Academy of Veterinary Medicine and Biotechnology to test new feed additives that help reduce greenhouse gas emissions from milk production and address the prevention and treatment of cryptosporidiosis and parasitic infestations in farm animals. When used in conjunction with existing therapeutic products, the solutions we are developing will enable comprehensive animal care.

In 2023, at the livestock breeding complex, a branch of the Federal Williams Research Centre of Forage Production and Agroecology, we started trials of a biologised forage grass nutrition system with the Company’s fertilizer system, which will be completed in 2026. The data obtained will make it possible to develop a comprehensive forage growing programme and an animal nutrition system based on PhosAgro Group’s products.

Furthermore, NIUIF upgraded methods to control feed phosphate production and improve product quality. The project focused on enhancing the consumer properties (reducing the caking and dusting of the finished product) of feed‑grade MCP produced by the Balakovo branch of Apatit.

Pro Agro Lectorium training programme

Since 2021, PhosAgro Group has been running Pro Agro Lectorium, an new training programme for a broad audience, students, and university professors, reaching out to 47 agricultural universities across Russia. Most importantly, the platform is convenient and serves as a source of up‑to‑date information on innovations in the industry from leading scientists and experts for agricultural producers and employees of agricultural companies in Russia and BRICS.

Today, the platform features over 400 lectures, 18 additional professional education courses culminating in the awarding of official state qualifications. Pro Agro Lectorium offers lectures in Russian, English, and Portuguese.

In ProAgro Lectorium, university students can access modern expertise in agriculture and agricultural sciences and better understand the nature of their future profession, graduates can use lectures for a smoother onboarding at a new job, teachers can align their knowledge with the latest scientific developments and self‑study, and seasoned farmers can receive additional training.

Equal opportunities and unhampered access to knowledge make it easier to adapt university curricula to modern labour market requirements, providing students with relevant knowledge and practical skills.

Over 140 speakers from Russia, China, India, Brazil, South Africa, and other countries have already contributed lectures in 22 areas to the platform.

Research as part of PhosAgro’s carbon farm project in the Vologda region

As part of a long‑term climate action, the Company has set up a carbon farm to study CO₂ compensation, absorption of carbon emissions by various ecosystems, as well as to test hands‑on solutions for establishing large‑scale carbon farms in agriculture and forestry.

In 2025, PhosAgro Group and the Centre for Forest Ecology and Productivity of the Russian Academy of Sciences will conduct a comprehensive analysis of the two‑year dynamics of carbon accumulation.

Key results of the PhosAgro Innovation Centre in 2024:

Cutting‑edge biologised adaptive plant nutrition systems

In 2023–2024, experts from the Company and the Federal Williams Research Centre of Forage Production and Agroecology ran a production trial to cultivate Verko alfalfa using biologised adaptive plant nutrition systems and a biological preservative for forage conservation.

Two biofertilization options were tested during the trial. The first option involved additional use of the Extrasol biological agent and the ApaSil adaptogen (trial plot 1), while the second one relied on replacing ammonium nitrate with biologised urea and using the same nitrogen dose along with ApaSil (trial plot 2).

In trial plot 1, where the Extrasol biological agent and the ApaSil adaptogen were used, the green mass harvest per area unit for two years was 98.46 t/ha, which is 15% higher than in the ordinary practice.

The maximum yield was achieved in trial plot 2, in the variant where crops were fertilized with biologised urea and treated with the ApaSil adaptogen – 114.49 t/ha of green mass in two years (six cuts), which is 33.8% higher than initially.

Product quality for biologised nutrition systems was also higher, suggesting a high potential for biologised nutrition systems to intensify farming, reduce production costs, improve feed quality for dairy farming, and increase carbon sequestration by forage grass systems.

Thus, the new types of fertilizers developed by PhosAgro help agricultural producers increase crop yields despite the constraints of limited land resources while also improving forage quality, reducing carbon footprint, enhancing soil fertility, and increasing production margins.

An important project deliverable should be a model of carbon accumulation in soil and calculation of the product’s carbon footprint, which will be integrated into PhosAgro’s Agro Calculator. In addition, the Company plans to develop model methodologies for climate projects similar to RECSOIL, which farmers can use as a template for registering projects as climate projects without the costly step of developing a customised methodology. All this will contribute to building a pool of carbon units formed by nature‑based projects, and, on top of that, establish an effective mechanism for verifying the carbon footprint of premium low‑carbon agricultural products.