TIDMATOM
RNS Number : 7749R
ATOME Energy PLC
31 October 2023
31 October 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Update on Paraguay Operations
ATOME Energy (AIM: ATOM), the only international green
fertiliser project development company on the London Stock
Exchange, which is progressing large-scale projects of 445MW in
Paraguay provides an update on progress on its current major
projects.
Summary:
-- Front-end engineering design ("FEED") for the Villeta Project, Paraguay nearing completion with engineering,
procurement and construction ("EPC") discussions at advanced stage
-- Environmental licence granted - tax-free zone status expected shortly
-- The Board is increasingly confident that the debt financing component of the project can be achieved
-- Significant carbon credit potential from the Villeta Project following independent estimates of up to 550,000
tons of CO2eq displaced per year with new Paraguay law expected to support monetisation of carbon credits
-- 300MW Yguazu Project progresses
Villeta 145 MW Phase I Villeta Project
ATOME is pleased to report the continued progress is being made
in relation to this project:
FEED and EPC nearing completion
The FEED study is nearing completion, and advanced discussions
and negotiations are currently ongoing in relation to the EPC
contract with the main and specialist sub-contractors, led on
ATOME's behalf by the Owner's Engineer, AECOM, the international
engineering consultancy. Completion of the EPC contract is a
prerequisite for taking final investment decision ("FID").
Environmental license granted and tax-free zone approved
On the ground, following a thorough process, the Environmental
Licence has now been granted to ATOME by Paraguay's Ministry of
Environment and Sustainable Development. This is a key project
document which gives ATOME the rights to commence preparation and
clearance of the Villeta site and enables all necessary permitting
from construction to operation of the production facility.
In addition, the grant of the tax-free zone has passed through
all the necessary inter-governmental processes and awaits only
signing off by Presidential decree which is expected shortly. All
of this has been achieved with the support of the Government whose
backing for this project has been key. Tax free zone status will
provide significant financial benefits to the project and its
funders.
Phase I Villeta debt financing has seen a strong level of
interest
In respect of debt financing, significant expressions of
interest have already been received from both Development Finance
Institutions and international banks. Whilst work continues in
relation to this, the strong level of interest shown to date has
demonstrated the financeability of the Company's first industrial
scale green fertiliser project and the Board is increasingly
confident that the required debt financing component can be
achieved.
It is worth repeating that the debt financing discussed is at
the project level which would provide significant value to ATOME
shareholders. We will provide further updates to shareholders on
the timing of all aspects of the project financing.
Sustainability credentials bring significant Carbon Credits
opportunity
Further to the Company's August announcement of its preliminary
carbon footprint analysis of its CAN product, ATOME can confirm
that the Company's estimates have been independently reviewed by
the specialist sustainability division of its Owner's Engineer
AECOM, which has assessed that ATOME's green calcium ammonium
nitrate ("CAN") fertiliser is estimated to have a significantly
lower carbon footprint than current grey alternatives, potentially
displacing up to 550,000 tons of CO2eq per year versus an imported
and applied grey CAN fertiliser in the Paraguay market.
This provides ATOME with a potentially significant value-added
part of the business in respect of any sale of these credits. The
future value of any projected offsets has also now been potentially
significantly increased by the new carbon credit law in Paraguay
enacted this month under which there is a Government backed
verification and certification procedure for qualifying credits to
make them more acceptable in the global carbon market.
300MW project in Paraguay code named Yguazu
The Yguazu project is over twice the size of the world-scale
Villeta facility and, after discussions with state energy provider
ANDE, studies are being embarked upon to identify the best place to
locate the Yguazu facility.
With the FEED study on Villeta now available to the Company,
lessons learned from Phase I, together with ATOME's own
infrastructure and professional teams, means that the Company will
be in a position to expedite this major project and others when the
time comes. Both contractors and funders are aware that
participation in Phase I Villeta will confer early mover advantage
for the next major project.
Olivier Mussat, CEO, commented: "One by one, milestones continue
to be achieved by ATOME as our flagship world-scale green
fertiliser project at Villeta, Paraguay proceeds.
"The critical environmental licence has been obtained, a
mandatory step in the project development, opening the door to move
to site clearance as the first step of operations, with the
additional benefit of enabling the formal decree for tax-free zone
status to be granted in the near future.
"The level and nature of the significant interest in the debt
component of the Villeta project finance is very encouraging,
demonstrating international as well as local financing interest in
our project which has both strong economic viability as well as
clear development impact thanks to its green credentials.
"It is an increasingly busy time for ATOME and we will continue
to keep shareholders appraised of our progress."
Glossary
FEED means front-end engineering design
EPC means engineering, procurement, and construction
FID m eans final investment decision
Owner's Engineer meaning the independent technical and
engineering representative for the project owner
For more information, please visit https://www.atomeplc.com or
contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations info@atomeplc.com
Beaumont Cornish (Nominated Adviser)
Roland Cornish, Michael Cornish +44 (0) 20 7628 3396
Liberum (Joint Broker)
Scott Mathieson, Kane Collings +44 (0) 20 3100 2000
SP Angel (Joint Broker)
Richard Hail, Harry Davies-Ball +44 (0) 20 3490 0470
Cavendish Capital Markets Limited
(Broker)
Simon Hicks, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, Charles atome@tavistock.co.uk
Baister
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this announcement, this inside information is now
considered to be in the public domain. The person who arranged for
the release of this announcement on behalf of the Company was Peter
Levine, Chairman.
About ATOME
ATOME Energy PLC is an AIM listed company targeting green
fertiliser production with 445-megawatt of projects in Paraguay and
a further pipeline of potential projects in Central America and
Iceland.
Since its admission to AIM in December 2021 ATOME signed a 145MW
power purchase agreement with ANDE, the state energy company in
Paraguay for production of green ammonia to produce industrial
scale premium value green fertiliser in 2025. It has procured 30
hectares of land in Villeta, Paraguay for that facility, mandated
Natixis Corporate & Investment Banking and the multilateral IDB
Invest to lead the project funding and with Front End Engineering
and Design studies currently underway with the international
companies Urbas and Casale. ANDE has also allocated a further 300MW
for ATOME's second project subject to studies.
In December 2022, ATOME entered into a joint venture with
Cavendish, the renewable energy arm of the substantial and
well-established Purdy Group based in Costa Rica and formed The
National Ammonia Corporation S.A, which is owned equally by ATOME
and Cavendish.
ATOME is in the process of operational planning, sourcing and
negotiations with green electricity suppliers, equipment providers
and offtake partners, including signed memoranda of understanding
and cooperation agreements in place with key parties, to produce
green ammonia at an industrial scale using electricity generated
from existing geothermal sources in Iceland and hydroelectric power
in Paraguay and Costa Rica. All chosen sites are located close to
the power and water sources and export facilities to serve
significant domestic and then international demand.
The Company has a green-focused Board which is supported by
major shareholders including Peter Levine, Trafigura, one of the
world's leading commodity and logistics company, and Schroders, a
leading fund manager, and since May 2023, Baker Hughes, a global
energy technology company operating in the energy and industry
sectors.
-ends-
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