ATOME Energy should more than double its underlying earnings, improve returns, and receive a faster payback after shifting its Villeta project in Paraguay from green hydrogen into green fertiliser production, according to analysts at finnCap.
“Refocusing Villeta into fertilisers widens the spectrum of potential funding institutions, capturing the food and agriculture sectors as well as energy and infrastructure,” the analysts said.
The decision to shift into green fertiliser was taken due to strong demand from potential off-takers, which were keen to secure 100% green fertiliser to reduce emissions, the finnCap analysts noted.
They pointed out that the additional costs associated with the project will be “more than offset” by the commercial benefits.
The analysts set a target price of 279p on the green hydrogen production company’s stock.
In late afternoon trading, ATOME shares were 1.9% higher at 106p.