(Petrobras, 25.Oct.2024) — Petrobras‘ Board of Directors decided to continue implementing the Nitrogen Fertilizer Unit (UFN-III), located in Três Lagoas (MS).
The decision is based on a careful re-evaluation of the project which, considering the premises of the Strategic Plan 2024-2028 (SP 2024-2028), had its economic attractiveness confirmed for this phase in the different scenarios provided for in Petrobras’ system for approving investment projects, including a positive NPV in the most challenging scenario.
The Unit had been mothballed since 2015 and the process of re-evaluating the project began last year, due to the approval of the company’s return to the fertilizer segment, in line with the strategic guidelines approved under the SP 2024-2028.
With the decision, the project is now part of the portfolio being implemented in the current Strategic Plan and Petrobras will begin the contracting process to restart construction of the Unit. The estimated investment for the completion of UFN-III is around R$3.5bn and it is expected to start operating in 2028.
The contracts will undergo all the necessary analysis, in compliance with governance practices and applicable internal procedures. The final authorization will still be submitted for approval by Petrobras’ appropriate authorities, which will allow the contracts to be signed for the work to be continued.
About the UFN-III Project
The UFN III project foresees the annual production of around 1.2 million tons of urea and 70,000 tons of ammonia. The plant is located close to the main consumer markets for these products and will mainly serve the states of Mato Grosso, Mato Grosso do Sul, Goiás, Paraná and São Paulo. Its strategic location makes it more reliable in terms of supply alternatives for this market, whose demand for urea fertilizer is on the rise.
In addition, the project features modern equipment and technologies in fertilizer production, resulting in high plant efficiency.
Ammonia is a raw material for the production of fertilizers and petrochemicals, as well as other agricultural products; and urea is the most widely used nitrogen fertilizer in Brazil, whose national demand is estimated at around 7 million tons by 2024 and is currently entirely imported. Corn is the main crop in demand for urea fertilizer in Brazil, but the product is also used to grow sugar cane, coffee, wheat and cotton, among others. Urea will also be destined for the livestock sector, used as a food supplement for ruminant animals.
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