ATOME Energy PLC (AIM:ATOM) said it has formed a new division dedicated to providing clean energy solutions for heavy road transport and shipping.
The new arm, ATOME Mobility, is initially focusing on supplying hydrogen energy to the road transport sector in Paraguay.
These plans will run parallel with the planning for the company’s large scale green hydrogen and ammonia businesses in Paraguay and Iceland, it said, adding that these remain on track and on schedule.
"ATOME Mobility's initial objective is to provide an integrated heavy goods transport offering bringing together vehicle manufacturers, haulage companies, financial solutions and end users in a closed loop all benefiting from ATOME's green hydrogen,” said Olivier Mussat, the group’s chief executive.
Negotiations are proceeding with a number of potential equipment suppliers, ATOME said, with the objective of this part of the business starting by the end of June 2023.
The company said it anticipates that the funding for ATOME Mobility in Paraguay will be sourced through the group's existing resources, with part of the business plan being to co-invest and/or co-venture in the end market with operators “in order to educate and promote the use of ATOME's clean energy in Paraguay first”.
Talks are progressing, it said, with agreements expected to follow.
Mussat pointed out that both Paraguay and Iceland have identified decarbonising of transport as a priority in their national climate strategies to achieve net zero.
“Companies are also under increasingly under pressure from stakeholders and funders alike to minimise the emissions involved in distributing their products globally. This is particularly the case where the parent companies are from Europe or America,” he said.
“Recognising that the production of green energy is only part of the matrix, ATOME Mobility aims to provide an integrated solution to accelerate the path for transition to zero emission green energy for all stakeholders whilst embedding ATOME as the fulcrum of change."
ATOME floated in London in December, after being split out of President Energy, with a £9mln fundraise at 80p per share.