ATOME Energy PLC (AIM:ATOM) has reported material progress in its proposed green fertiliser project in Costa Rica, where it has now entered into a collaboration agreement to advance feasibility work.
The company, in a statement, told investors that it will work with the Instituto Costarricense de Electricidad (ICE) to evaluate the feasibility of supplying to the project power from 100% renewable sources.
It described the agreement as a “necessary and significant” first step in securing entirely renewable baseload electricity for the project, which will be Costa Rica’s first industrial scale green ammonia and fertiliser project.
ATOME also noted a meaningful endorsement of the project, with Costa Rica president Rodrigo Chaves, at a meeting with the company in late January, confirming a clear expression of interest and commitment to the proposed project.
The AIM-quoted firm described Costa Rica as optimal location for green fertiliser production – given its existing renewable power, premium agricultural industry, and strategic regional position for access to both Pacific and Atlantic Ocean ports.
It highlighted that the proposed project would be a similar size to the company’s Villeta project, in Paraguay.
“We have been able to establish an excellent working relationship with ICE with the aim of building Costa Rica's first green fertiliser facility,” chief executive Olivier Mussat said in a statement.
"There is a substantial local market for the fertiliser we intend to produce as well as being strategically located to access global markets. Costa Rica is viewed as a prime investment destination with significant existing foreign investors such as Intel, Microsoft, and Amazon.”
Mussat added: “Whilst the 145MW Villeta Phase 1 Project remains the near term priority of the team, the progress made on Costa Rica is significant news for ATOME.
“Beyond adding another flagship project to our pipeline, it is a demonstration of ATOME's business plan and its growing reputation as a world leader in green fertiliser.
“It also shows that ATOME's own developed technical and commercial IP is able to be replicated on a cost-effective basis elsewhere giving us a significant edge in speed of mobilisation, costs and efficacy."