ATOME Energy PLC (AIM:ATOM) said it might be able to generate as many as 500,000 carbon credits a year from its Villeta green fertiliser project in Paraguay, generating a significant source of additional revenue.
Over a 25-year lifetime, Villeta potentially could thus generate 12 million credits or the equivalent of offsetting the annual emissions from 2.7 million passenger cars on the road.
Credits can be acquired by carbon-generating businesses such as oil and gas companies to offset their emissions and are already a big source of revenue for firms such as electric vehicle maker Tesla.
Carbon pricing under the European Union Emissions Trading System compliance market is regularly trading between €80 and €100 per ton.
ATOME’s financial adviser Natixis has issued an information memorandum and video highlighting the potential.
The memo also contains key information on all aspects of the project and is a material step towards securing project-level funding, said the statement.
ATOME added that work on a final investment decision (FID) for phase 1 at Villeta is progressing in line with expectations and remains on schedule for the final quarter of this year.
Olivier Mussat, ATOME’s chief executive, commented: "Our Phase 1 Villeta project has clear sustainable development impacts, creating local employment, value for Paraguay, and reducing greenhouse gas emissions in the agricultural sector.
“With increasing climate pressure on the fertiliser sector, the initial analysis of the potential carbon credits generation suggests a potential significant stream of value-added revenue creation.
"The issue of the IM to the interested funding parties is another major step towards FID [final investment decision] being delivered as projected in the fourth quarter of this year.
"Our project will, in the opinion of the directors, produce the world's most affordable green fertiliser by the end of 2025.”