ATOME PLC (AIM:ATOM) has inked an agreement with Hy24 that tees up at least $100 million of investment in its Villeta green fertiliser project in Paraguay.
Hy24, through its Clean H2 Infra Fund, will be the anchor and lead equity investor in a funding round targeting $115 million. And, the clean hydrocarbon infrastructure fund itself commits to fund a minimum of $100 million.
The equity investment is at the asset level, and the deal effectively values ATOME’s net interest in the project at $60 million.
ATOME will maintain the day-to-day management and operational responsibility of the Villeta Project.
The agreement also envisages that Villeta receive a total funding package of $625 million, with at least 60% coming via debt financing.
Today’s preliminary agreement with Hy24 is expected to progress to definitive documentation, alongside other equity investors in Villeta, during the second quarter – with a final investment decision, including debt financing commitments, before the end of the first half of 2025.
“We welcome Hy24, a worldwide leader in hydrogen private equity finance, as an anchor equity investor and are excited to bring the project to full financial close in the first half of this year,” chief executive Olivier Mussat said in a statement.
“The Hy24 team has demonstrated deep industry expertise that will accelerate our project development.
“This demonstrates the substantial value in ATOME's business model of developing shovel-ready projects that combine market offtake and strong financial returns with significant development impact, backed by our proven management expertise."
Hy24 chief executive Pierre-Etienne Franc, meanwhile, added: “This marks Hy24's first step toward a potential direct investment in the region through our Clean H2 Infra Fund.
“We are committed to supporting the most promising project developers who contribute to providing cleaner alternatives.
“ATOME's Villeta project stands as one of South America's most advanced green fertiliser initiatives, driven by Paraguay's exceptional renewable resources, a highly experienced team that has effectively advanced the project's development, and strong offtake potential within the Mercosur region.
“Villeta has the capacity to significantly enhance the region's food sovereignty."