ATOME PLC (AIM:ATOM) said it is still aiming to reach a final investment decision on its flagship fertiliser project in Paraguay by the end of the year, as talks with lenders and cornerstone investors move into what the company calls the “advanced” stages.
The Aim-quoted group is developing what it describes as the world’s first industrial-scale low-carbon fertiliser plant, a $630 million facility in Villeta designed to produce 260,000 tonnes a year.
The project is built around Paraguay’s abundant renewable power, which allows ATOME to make ammonia-based fertiliser with a far smaller carbon footprint than conventional alternatives.
Today, the company said lenders remain “actively supporting” the scheme, offering what it described as competitive terms. Loan documents are now being negotiated, although they remain contingent on finalising the equity package for the project.
ATOME added that a “motivated” consortium of equity partners is close to being fully assembled, with the remaining paperwork under way.
Olivier Mussat, the chief executive, said: “Structuring the financing for the world's first industrial-scale green fertiliser plant will be a pioneering achievement.
While coordinating top-tier global partners across three continents is complex, the time invested now ensures we are building the most robust financial foundation possible for the project's lifespan and sets the blueprint for future projects.”
He said an investment decision on Villeta would serve as a launchpad for the group’s wider pipeline, including its newly created ATOME Power division, which is developing renewable power and infrastructure projects.
“We are maintaining our challenge to our financing partners to achieve FID in or about the end of this year and working with them 24/7 to achieve this goal,” he added.
Villeta is already well developed. The company has a 145-megawatt renewable power contract in place, a 30-hectare tax-free site and an option over adjoining land.
Engineering studies have been completed and a ten-year offtake agreement for all production has been signed with Yara International, one of the world’s biggest fertiliser groups.
Earlier this year ATOME signed a $465 million fixed-price construction contract with Casale, an engineering specialist in ammonia and fertiliser plants. Hy24, a prominent clean hydrogen investment manager, has agreed to act as anchor investor.
The project matters because fertiliser production is typically carbon-intensive. Ammonia requires large volumes of hydrogen, which is usually made from natural gas.
By using renewable electricity to produce hydrogen instead, ATOME aims to cut emissions sharply. With Paraguay sitting next to the agricultural powerhouses of Brazil and Argentina, the company pitches its product as a way of reducing the region’s reliance on imported fossil-fuel-based fertiliser.
ATOME, which also has early-stage plans in Costa Rica, argues that decarbonising fertiliser can play a meaningful role in cutting the climate impact of food production. Its chosen nitrogen product, Calcium Ammonium Nitrate, is widely used and considered reliable for boosting crop yields.
The group says the strong progress in Paraguay leaves it confident of breaking ground on the project next year, assuming financing is locked down as planned.