City analysts were impressed by ATOME Energy PLC (AIM:ATOM)’s 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 told investors that it will work with the Instituto Costarricense de Electricidad (ICE) to evaluate the feasibility of supplying the project power from 100% renewable sources.
ATOME 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.
Today’s announcement shows that ATOME’s technical and commercial IP can be replicated on a cost-effective basis in geographies with similar advantages,” said SP Angel analysts on the news.
They continued: “The progress in Costa Rica potentially adds another flagship project to the development pipeline and confirms ATOME’s strategy and status as a world leader in green fertiliser.
“We expect activity to accelerate over the next few months in Paraguay, where the FEED study on the Phase 1 Villeta project is nearing completion, with the subsequent key valuation catalysts for investors following to secure financing in first-quarter 2024 and approve the development thereafter.
“With management focused on delivering the final investment decision for the Villeta project, we expect the company to deliver several near-term valuation catalysts that should drive the share towards our 200p share price target.”
ATOME is a buy, reckons SP Angel.
Shares were 11% higher at 58.32p in late Wednesday trades.