ATOME PLC (AIM:ATOM) told investors it is launching ATOME Power, a new renewable energy division that will initially focus on Latin America.
The unit will develop and deploy "power as a service" projects, the company said.
ATOME Power's first project is a planned utility-scale solar plant with up to 400 megawatts of capacity and battery storage.
It will be located near ATOME's green fertiliser facility in Villeta, Paraguay, where the company has optioned 685 hectares of land for the development and has commenced feasibility studies.
The unit will be an 80:20 joint venture between ATOME and Fondo de Inversion en Innovacion de Paraguay, with funding expected to come from internal resources or external parties at the project level, with no equity funding from the group.
"We believe ATOME Power represents an excellent potential value-added income opportunity for our shareholders,” chief executive Olivier Mussat said in a statement.
“ATOME Power will seek to deliver substantial near-term, diversified revenue and capital growth without diverting critical resources from our core operations."
Mussat added: "Our new power business plans to capitalise on ATOME's established relationships to enable accelerated project deployment and unlock expansion opportunities within Paraguay and across the region."
At the same time, the company noted that substantial progress continues to be made at the Villeta project.
ATOME expects to give investors a Villeta project update "between now and FID", later this year.