ATOME Energy PLC (AIM:ATOM) said its industrial-scale green hydrogen and ammonia production plant in Villeta, Paraguay has been selected for potential investment by the private sector arm of the Inter-American Development Bank (IDB).
With the land purchase completed earlier this week and an eligibility test for funding successfully completed, IDB Invest has signed an agreement to carry out due diligence into prospective project financing, the AIM-listed company said in a statement on Wednesday.
IDB Invest will provide certain grant funding towards the costs of the Environmental and Social Impact Assessment (EISA), it added, which is a necessary step to receive funding.
To get a positive final investment decision, the planned 120MW facility will need to conform to high standards set by IDB Invest's policies on matters including environmental and social sustainability, ATOME noted, and then be approved by IDB Invest’s board of directors.
A final decision is expected in the second quarter of the year, ahead of full production in 2025.
Olivier Mussat, ATOME’s chief executive, said with IDB and IDB Invest having provided more than US$26bn in climate financing for Latin America and the Caribbean between 2016 and 2021, the company welcomed interest in the project and were grateful for the immediate support in the project by providing grant funding for the ESIA.
“IDB Invest's mandate is an important step in the matrix of our funding strategy, complementary to the ongoing work with our financial advisor Natixis and reflective of the increasing incoming interest shown by credible substantial parties in funding Villeta at the project level,” he said.