ATOME PLC (AIM:ATOM), the green fertiliser developer, has said negotiations over a power purchase agreement for its Villeta project in Paraguay are continuing.
The company added that the Paraguayan government has expressly indicated it wants the scheme to succeed.
A power purchase agreement fixes the price and terms under which the project will buy electricity, a critical component for the energy-intensive plant.
Discussions remain ongoing with the relevant counterparties on the specific terms of the deal.
ATOME said its international commercial partners and lenders continue to support both the company and the project.
Those lenders include IDB Invest, the private sector arm of the Inter-American Development Bank Group, and IFC, the private sector arm of the World Bank Group.
The European Investment Bank, FMO, the Dutch development bank, and the Global Climate Fund, which is managed by the World Bank, are also backing the venture.
The Villeta low-carbon fertiliser project is widely regarded as strategically important to Paraguay.
It is expected to establish the country as a fertiliser producer, create thousands of jobs and support domestic food supply as its agricultural sector expands.
ATOME expects to update the market in the first part of August, unless material developments occur before then.
