ATOME Energy PLC (AIM:ATOM) said the environmental licence has been granted and a tax-free zone approved for the Villeta project in Paraguay, while plans on its larger Yguazu project are advancing.
Front-end engineering design (FEED) for the Villeta green hydrogen and ammonia project is almost complete, the company said in a statement, while discussions with contractors on engineering, procurement and construction (EPC) are at an “advanced” stage, being led by AECOM in its role as owner's engineer.
An EPC contract needs to be agreed upon before the company makes its final investment decision on the green hydrogen and ammonia project.
The environmental licence was granted to ATOME by Paraguay's Ministry of Environment and Sustainable Development, allowing site clearance to begin as the first step towards building the 145-megawatt (MW) facility, as well as including all necessary permits from the construction stage through to operation of the production facility once it is built.
This licence also has enabled the tax-free zone status to move to its final stage before receiving a Presidential decree, which the company said is expected “shortly” and to provide “significant financial benefits to the project and its funders”.
Further on funding for the Villeta project, “significant expressions of interest” to provide debt funding were reported, from both banks and development finance institutions.
Looking forward to the operational future of Villeta, AECOM’s analysis suggests that the project’s green calcium ammonium nitrate (CAN) fertiliser is estimated to have a significantly lower carbon footprint than current ‘grey’ alternatives, while a new carbon credit law enacted in Paraguay this month is also expected to add value to any credits produced locally.
Chief executive said Olivier Mussat said: “The level and nature of the significant interest in the debt component of the Villeta project finance is very encouraging, demonstrating international as well as local financing interest in our project which has both strong economic viability as well as clear development impact thanks to its green credentials.”
On the Yguazu project, which at 300MW is more than double the size of Villeta Phase I, the company said studies are underway to identify the optimal location for the facility, following discussions with state energy provider ANDE.