Atome Energy Awards FEED Work on the Hydrogen Project in Paraguay

By July 28, 2022 3   min read  (458 words)

July 28, 2022 |

Fuel Cells Works, Atome Energy Awards FEED Work on the Hydrogen Project in Paraguay

ATOME Energy (AIM: ATOM), the only pure international green hydrogen and ammonia production company on the London Stock Exchange with current large scale projects in Europe and South America and mobility projects, announces another step on the road to delivering its 400MW green hydrogen and ammonia projects in Paraguay.

FEED contract for the Villeta substation

ATOME is pleased to announce that it has entered into its first FEED (Front End Engineering Design) contract in relation to its first phase 60MW Villeta project facility. The FEED is in relation to the Civil and Electromechanical works for the adaptation of the ANDE substation and will define the design and technical package which will be used as a basis of procurement and detailed engineering by the chosen Engineering Procurement Construction (“EPC”) contractor. ANDE is the state owned national electricity company.

The FEED contract has been signed with Concret-Mix, a local Paraguayan company with extensive experience in this type of engineering work, including the construction of the Villeta substation operated by ANDE. AECOM, the international engineering consultancy retained by ATOME for the Villeta project, advised on the contract. The contract includes soil studies, topography and selection of electrical/electromechanical equipment with cost estimation and timetable for work.

This workstream is expected to be delivered by the end of September 2022, after which ATOME will move to procurement and nomination of the EPC contractor in order to prepare the site to receive power.

This process is in addition to the full facility FEED study for which AECOM has sent requests for Expressions of Interest and Information to selected contractors on 22 July 2022, on ATOME’s behalf. To date, the response to such requests from leading FEED and EPC contractors has been very encouraging and demonstrates the high amount of interest shown in ATOME’s advanced projects.

Olivier Mussat, CEO, commented:

“The entry into the FEED contract is the next step in what will in due course culminate in an aggregate of 400MW of green hydrogen and ammonia production in Paraguay, the first phase of which at Villeta is expected to commence production by Q1 2025.”

“The progress underlines ATOME’s commitment to be at the forefront of our industry in turning plans into reality, seizing the commercial initiative and recognising the increasingly urgent need to supply fertlisers and energy, as well as decarbonise and move towards net zero emissions.”

“We are, as well as other local partners and stakeholders, particularly pleased to ensure local content and jobs in our project and look forward to a long and mutually beneficial relationship with Concret-Mix who we are also working with us in our Mobility Division.”

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