ATOME Energy (AIM: ATOM), the company focused on green hydrogen and ammonia production globally with projects in both Europe and South America is pleased to announce the expansion of its flagship green ammonia production project in Villeta, Paraguay from 60MW to 120MW. This doubling of capacity will enable the facility to produce up to 100,000 metric tonnes (MT) of green ammonia per year once operational within 30 months from now.
The Company also announces the appointment of internationally recognised engineering firms as Front-End Engineering Design (“FEED”) contractors for the newly world-scale Villeta Project. The consortium will, on a fast-track basis, complete their study by early Q2 2023 with Final Investment Decision (“FID”) to follow thereafter.
Highlights
- ATOME’s green hydrogen and ammonia Villeta Project expanded to a world-scale 120MW capacity capable of producing up to 100,000 MT of ammonia per year
- Villeta with first production within 30 months from now is the largest announced green hydrogen and ammonia project in Latin America based on 100% renewable power available today
- ATOME appoints global leader in ammonia Casale with internationally recognised engineers Urbas Energy-Ingeser and TSK working in cooperation as its FEED Consultant for Villeta Project
Villeta Project doubled to 120MW renewable 24/7 baseload power capacity
Further to the May 2022 60MW Power Purchase Agreement (“PPA”) signed with ANDE, the Paraguayan National Power Company, post the Company’s December 2021 IPO, the PPA has by agreement with ANDE now doubled in capacity to 120MW of available 24/7 baseload 100% renewable power for its Villeta Project. This is the largest PPA ever signed between ANDE and an industrial user and will enable the facility to produce up to 100,000 MT of green ammonia per year.
As the world population has reached 8 billion people, the demand for fertiliser keeps increasing and driven by this and increased industrial demand, the current global ammonia market of 178 million tonnes is expected to grow nearly 40% by 20501. With exponential need to reduce carbon emissions, the demand for green ammonia, currently a small part of ammonia produced, is set to grow at a compound annual growth rate of 72% between 2023 and 20322.
(1) Export Market Research Report for 2022 – 2027
(2) Future Market Insights Report August 2022
ATOME remains on track to commence full production in the first part of 2025 with the available renewable power meaning that ATOME has no need to build its own power generative capability thereby saving material time and resources and in turn placing ATOME at the forefront in terms of production and trading of green hydrogen and ammonia in Latin America. In planning the project, ATOME will use established and well proven production technologies, including alkaline electrolysers, to mitigate operational risks, costs, and delays, with such technology being chosen for the Villeta Project inter alia for consistency and reliability against yet proven technologies at scale.
The Villeta Project is the first phase of the Company’s total planned 420MW pipeline in Paraguay. The 120MW Villeta Project is expected to be the largest dedicated green ammonia facility in Latin America by the time it is operational in 2025 and is the largest announced in that region to date based on currently available renewable power.
The 120MW green ammonia facility will be hosted on the 75-acre Villeta site acquired earlier this year being adjacent from ANDE’s newly built and commissioned substation. The site itself is situated within several kilometres of the navigable Paraguay-Parana Waterway with major port, industrial and agricultural centres nearby.
Appointment of the international FEED Consultant Urbas Energy-Ingeser, in cooperation with Casale and TSK
ATOME has, after a highly competitive international tender, appointed its FEED contractor for the 120MW green hydrogen and ammonia facility at Villeta, Paraguay, placing ATOME firmly on the road leading to commencement of production in the first part of 2025.
FEED is a recognised and necessary engineering design approach used to control project expenses and thoroughly plan a project with the intent of avoiding significant changes to the build-out phase and reflecting the project-specific requirements. The FEED results are used as a necessary basis of proceeding to the execution of construction to completion.
The Consultant for the FEED is the Spanish engineering firm Urbas Energy-Ingeser, with wide experience delivering projects in Latin America, in cooperation with TSK, who have an extensive track record of integrating and delivering international infrastructure energy projects on a world scale, and Swiss company, Casale. Casale was established over a century ago and is among the few licensors that can provide integrated engineering and technology solutions for the full production chain of nitrogenous and phosphate fertilisers including ammonia.
It is scheduled that the full FEED study for the now enlarged 120MW facility will be completed in Q2 2023 enabling ATOME to move expeditiously in that quarter to FID with the facility on track to be fully operational within 30 months from now.
Olivier Mussat, CEO at ATOME, commented: “We are grateful for the confidence that ANDE is showing in ATOME by increasing our power supply to 120MW, enabling Paraguay to become the leader on the continent in the fast-growing green hydrogen economy.
“In parallel, we are announcing that, after a competitive tender process including some of the leading engineers in the field, we have appointed as FEED contractor, a very strong consortium of engineering and industrial companies with a track record of delivering ground-breaking energy projects across Latin America and the world, combined with unparalleled expertise in the ammonia sector. In choosing UrbasEnergy-Ingeser, TSK and Casale, we have the confidence that they can deliver on time and on budget as they have real expertise along the entire project value chain and on the ground.
“The enlarged 120MW project with its early date to commence full production will benefit from significant economies of scale, making our production of green ammonia even more attractive in the global markets looking to source green energy and green fertilisers.”
Juan Antonio Acedo, President and CEO at URBAS, commented: “We are honoured to have been selected by ATOME to carry out the front-end engineering design for this landmark project in Paraguay and in Latin America, and proud to participate and to contribute to one of the most reliable green ammonia projects in the world. It is strategic for URBAS and INGESER to give priority to pioneer projects based on decarbonization and sustainable energy, bringing competitive alternatives to fossil fuels today.”
Mr Federico Zardi, CEO of Casale, added: “Our passion and the driving force behind our business has always been to make a mark in providing viable and workable solutions to help protect our environment while producing the chemicals that are at the root of our lives.
“We are therefore honoured and excited to be on board of this ambitious and landmark project for South America which, capitalizing on our long-term experience and leveraging our newest green technologies, aims at establishing a world-scale ammonia and hydrogen production plant in a fully sustainable way, leading the path towards further developments in the region”.
Investor Meet Company Presentation
ATOME Energy PLC is pleased to announce that Olivier Mussat, Chief Executive Officer of ATOME, will provide a live presentation via the Investor Meet Company platform on 6 December 2022 at 11:00am GMT.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet ATOME’s senior management team via: https://www.investormeetcompany.com/atome-energy-plc/register-investor
Investors who already follow ATOME Energy PLC on the Investor Meet Company platform will automatically be invited.
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About ATOME
ATOME Energy PLC is an AIM listed company targeting green hydrogen and ammonia production with 500-megawatt of projects in Paraguay and Iceland, through its subsidiaries ATOME Paraguay, which is wholly owned, and Green Fuel ehf, in which ATOME Energy holds a 75 per cent interest, respectively.
Since its admission to AIM in December 2021 ATOME has signed its first electrolyser purchase order for its hydrogen transport Mobility Division due to start generating revenue in 2023 and signed a large-scale 120MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.
ATOME is in the process of operational planning, sourcing and negotiations with green electricity suppliers, equipment providers and offtake partners, including signed memoranda of understanding and cooperation agreements in place with key parties, to use electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay. All chosen sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.
The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Trafigura, one of the world’s leading commodity and logistics company, and Schroders, a leading fund manager.
