ATOME Energy PLC (AIM:ATOM), the only international green fertiliser project developer listed on the London Stock Exchange, has provided an encouraging update on its operations in Paraguay.
The Front-End Engineering Design (FEED) study and the Engineering, Procurement and Construction (EPC) of the Villeta Project are advancing well, with completion anticipated in the first quarter.
ATOME has received multiple offtake proposals from leading international players for its green Calcium Ammonium Nitrate (CAN) fertiliser from the Villeta Project.
These negotiations are in advanced stages, with the company expecting to announce a formal agreement before the end of this quarter.
“It has become clear to the board that there is a significant and growing market for CAN on the doorstep of Paraguay, in Brazil and Argentina, particularly with the latter market becoming significantly more open due to the change in government there,” said ATOME.
Financially speaking, the Villeta Project has garnered considerable interest, with the debt financing component being over two-times oversubscribed, while discussions with international heavyweight investors for the equity component are also ongoing.
The company is also making headway with its 300MW Yguazu Project.
Pre-PPA studies are nearing completion, which will help finalise the project's location. A formal 300MW Power Purchase Agreement (PPA) is targeted for the first half of 2024.
Chief executive Olivier Mussat commented on the progress, expressing confidence in 2024 being a transformational year for ATOME.
He stated: "Whilst taking slightly longer than we originally hoped, the work and de-risking during this extended time has allowed for significant benefit in enhancing the efficacy of our first 145MW project in Paraguay as well as enabling beneficial impact on design, offtake, and financing.
“We are confident that in this quarter, further key project milestones will be achieved, and we look forward to taking FID [final investment decision] on the Villeta project once these workstreams are completed.
"At the same time, work is continuing in parallel on other projects and in particular Costa Rica which, combined with Yguazu in Paraguay, provides a pipeline of projects extending to world-scale in excess of half a gigawatt."