Atome, (ATOM), an international green hydrogen and ammonia project development company, is expanding its Villeta project in Paraguay to include green fertiliser production, specifically Calcium Ammonium Nitrate. The company aims to be the first to produce an industrial-scale premium value green fertiliser, while still meeting the original start-up date of 2025.
This strategic move is expected to enhance Atome's industrial value, capture premium prices, and achieve profitability. With an annual production capacity of up to 250,000 tonnes of Calcium Ammonium Nitrate from 2025, the granulated green fertiliser will be sold in major importing markets across South America, Europe, and Asia, leveraging Paraguay's existing infrastructure.
In the same statement, Atome announced that Baker Hughes, a $29bn global energy technology company, is subscribing £2.4m in cash at a 3.2% premium for a 6.6% shareholding in the company. In return, Baker Hughes has been granted a right of first offer to supply its leading hydrogen compressors to Atome’s planned projects.
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Atome’s exciting move downstream offers strong commercial benefits, with potential gains in income, volume, and shareholder returns, which are predicted to offset any additional costs associated with the project.
Fertiliser, agriculture, and food companies face mounting pressure to lower their carbon emissions while satisfying the ever-increasing demands of a growing global population. In 2021 alone, the ammonia industry contributed more than 450 million tons of CO2 equivalent to global emissions. Transforming nitrogen-based fertilisers into environmentally friendly alternatives is seen as a rapid and effective approach for these companies to achieve their climate targets and ensure supply stability.
As a result, the green fertiliser sector is anticipated to emerge as one of the fastest-growing industry segments of the decade, with the market projected to reach a value of US$ 2,145.73 million by 2030, and rise at a CAGR of 4.5%. The global market demand in part explains investor's strong reaction to the news this morning, pushing shares up 13% this morning.
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