ATOME PLC (AIM:ATOM) shares soared on Friday after announcing a definitive 10-year offtake agreement with Yara International, for the entire annual production of 260,000 tonnes from its Villeta low-carbon fertiliser project in Paraguay.
The deal is the last commercial milestone ahead of a final investment decision later this year.
It's anticipated that construction of the US$630 million project will begin in the fourth quarter of 2025, the company added.
Today's agreement builds on terms first announced in July, and includes an option to extend beyond the initial 10 years.
“Our partnership with Yara, now in final and definitive form, is a landmark milestone in the delivery of our Villeta Project in Paraguay," said ATOME chief executive Olivier Mussat.
"We are immensely proud to be a part of this first-of-its-kind agreement, the largest low-carbon fertiliser supply agreement globally."
"As we progress on our broader pipeline of projects alongside Villeta, ATOME continues to collaborate with world-leading project partners and offtakers to facilitate the distribution of our green molecules, disrupt traditional commodity markets and pave the way for a cleaner, more sustainable future."
Chrystel Monthean, Yara EVP for Americas, added: "Yara's ambition is to contribute to 'growing a nature-positive food future', profitably ... with this local supply of fertilisers based on renewable energy, we will strengthen our portfolio which, in combination with our agronomical knowledge, will allow us to respond competitively to market demand."
"We are looking forward to continuing this strategic, long-term relationship with Atome."
In London, ATOME shares were up around 25%, changing hands at 61.7p.