Brazil’s Prumo announces BRL 15 bn investments for Açu Port

Brazil’s Prumo, the owner of the Açu Port, is gearing up to invest a whopping BRL 15 billion (approximately $2.8 billion) through ten-year partnerships. The company’s president, Rogério Zampronha, revealed plans for more than five projects aimed at facilitating the transition towards cleaner energy courses, with hopes of possibly shortening the timeline to eight years.

The allocation of funds for these projects is as follows:

HBI Project: An impressive R$5 billion has been set aside for the HBI (Hot Briquetted Iron) project called Green Briquette. With its high iron content, this product meets steel mills’ demands by boosting productivity and reducing carbon dioxide emissions in steel production.

Biogas Plant: Roughly R$300 million is earmarked for a biogas plant, with potential for additional phases in the future.

Gas Pipelines: A significant R$4 billion will go toward constructing gas pipelines to connect the Cabiúnas terminal in Macaé (RJ) to Porto do Açu. The final route is yet to be determined, but it has secured the necessary licensing approvals.

Liquid Storage: An allocation of R$300 million is designated for the Liquid Storage at Açu (TLA) project.

Spot Project: An investment of R$2 billion is planned for the Spot project, which aims to transport crude oil via pipelines to selected refineries.

Offshore Wind Logistics: An additional R$2 billion will be used for logistics bases dedicated to offshore wind energy in collaboration with companies such as Total. The remaining funding will come from undisclosed projects.

Prumo has confirmed that each of these projects will be financed through their respective partnerships.

During the Prumo Day event, a strategic partnership agreement was formalized between the logistics company and Geo Bio Gás&Carbon. This agreement initiates feasibility studies for a potential biogas generation plant in Açu, Rio de Janeiro, and its environs. The study will encompass evaluations of the plant’s installation feasibility and the utilization of the port’s logistical infrastructure, including purification facilities, biofuel production, liquefaction, and low-carbon hydrogen production units.

Rogério Nogueira, Director of Product Development and Business at Vale, emphasized the necessity for Brazil to enhance conditions conducive to establishing a green steel industry. Speaking at the Prumo Day event, Nogueira cited Vale’s efforts to facilitate these enhancements for its customers. He highlighted the country’s challenges, including high capital costs, fiscal complexities, and licensing obstacles, which impede the swift establishment of an HBI (Hot Briquetted Iron) hub. Such hubs play a pivotal role in assisting steel mills to reduce carbon dioxide emissions. Nogueira stressed the urgency of keeping pace with global advancements in decarbonization, asserting that Brazil cannot afford to lag behind.

He estimated that roughly $2 trillion in investments is required to steer the steel industry toward carbon neutrality. He concluded, “There are currently no private-sector entities worldwide equipped to invest in pathways leading to this transformative change. Many regions with pioneering nations in this transformation rely on government subsidies.”

Source: Valor Econômico

To read the original text, check: https://valor.globo.com/empresas/noticia/2023/08/31/prumo-preve-investimentos-de-r-15-bi-em-projetos-no-porto-do-acu.ghtml

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