ATOME Energy PLC (AIM:ATOM) said it is no longer pursuing a hydrogen mobility project in Paraguay and has terminated an agreement with Clean Power Hydrogen PLC (AIM:CPH2) for an electrolyser.
Instead, it is now prioritising the development of the Villeta project, which will produce green fertiliser, and advancing plans for the larger Yguazu project, both in Paraguay.
The mobility project would have been a “diversion” from the plans to become an industrial-scale green fertiliser producer, the company said.
Last month, the 145MW Villeta project received its environmental licence as well as Free-Trade Zone status by presidential decree.
Cancelling the electrolyser delivery order has been mutually agreed without penalty or other payout, and ATOME has been given its US$300,000 deposit back.
“With green fertiliser now firmly at the core of ATOME's strategy, the mutual termination of the arrangements with CPH2 allows ATOME to mobilise all its resources and energy on its world class green fertiliser business whilst permitting CPH2 to concentrate on its home markets,” said chief executive Olivier Mussat.
As part of the agreement, ATOME and CPH2 have agreed to a non-binding framework agreement with G-Mobility to explore a licensing agreement for the manufacture and sale of CPH2's MFEs in the Mercosur group of countries in South America.
G-Mobility is a subsidiary of Molecular Energies PLC (AIM:MEN, OTC:PPCGD), the South America-focused energy company. Molecular Energies is a 20% shareholder in ATOME.