Petrobras launches $5 bn UFN‑III fertilizer plant project in Três Lagoas, Brazil

President Luiz Inácio Lula signed contracts to complete the Unidade de Fertilizantes Nitrogenados III (UFN‑III) in Três Lagoas, Mato Grosso do Sul. The project, part of the New Growth Acceleration Program, will receive more than R$ 5 billion in investment and is slated to start operations in 2029.

When fully operational, the plant will produce about 3.6 thousand tonnes of urea and 2.2 thousand tonnes of ammonia each day – roughly 1.3 million tonnes of urea per year, covering around 16 % of Brazil’s domestic demand. The capacity is expected to raise Brazil’s share of the urea market from the current 20 % to about 35 %, lessening the country’s reliance on imports that now exceed 85 % and come mainly from Russia, Qatar, Oman, Trinidad & Tobago and the United States. The project is deemed strategic for food‑security, aims to generate about 8 000 jobs, and includes a programme of vocational training for local residents.