ATOME (ATOM) , a green hydrogen company with projects in Latin America and Europe, announced the completion of the FEED study for its 145MW green fertiliser facility in Villeta, Paraguay.
The milestone marks the first successful completion of a FEED study for a large-scale green dedicated fertiliser project worldwide. The study provides the foundational engineering for ATOME's 145MW Villeta facility, on track to commence construction by end of 2024.
Next, ATOME is advancing EPC discussions, aiming to appoint principal EPC contractors by end of June 2024, with the definitive contract expected to be signed at the time of FID later this year. ATOME also said it was "highly encouraged" by the status of offtake discussions, and hopes to announce a successful conclusion by end of Q2 2024.
Olivier Mussat, CEO, commenting: "ATOME continues to follow its strategy and systematically deliver major milestones on the road to starting construction at Villeta by the end of this year."
Jennifer Obertino, Global Energy Practice Lead, of AECOM, commenting: "We are pleased to confirm the completion of the Front End Engineering Design study for the 145MW green fertiliser project at Villeta, Paraguay, having worked alongside ATOME, Casale and Urbas Energy over the last 18 months."
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A major milestone for ATOME's 145MW Villeta Project in Paraguay, bringing it closer to construction. EPC discussions are already at an advanced stage, hence FID and construction are expected by year-end.
After listing on AIM in December 2021, ATOME signed the power purchase agreement with ANDE - the state energy company in Paraguay - for the acquisition of 30 hectares of land in Villeta for the 145MW facility. ANDE has allocated a further 300MW for ATOME's second project, subject to studies. In total, ATOME is targeting 445 MW of green fertiliser projects in Paraguay, with a further pipeline of potential projects in Central America.
As mentioned, the FEED study for the the Villeta Project is unprecedented in its scope, covering an industrial-scale, zero-carbon fertiliser facility. The study confirms the project's design, processes, timelines, and production capacity of 264,000 tonnes per year of green calcium ammonium nitrate fertiliser, which has the potential to displace 15 million tonnes of CO2e over the life of the project.
The study can also be applied to ATOME's other projects, consolidating its leading position in the hard-to-abate green fertiliser sector. It took 18 months to complete and clears the way for offtake discussions and EPC, to be followed by construction by end of 2024, and production start-up by 2027. Offtake is the last major hurdle before the final phases of project funding.
Fertiliser, agriculture, and food companies face mounting pressure to lower carbon emissions while satisfying the ever-increasing demands of the growing global middle class. Transforming nitrogen-based fertilisers into environmentally-friendly alternatives is seen as a rapid and effective approach for 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$2.2bn by 2030 at a CAGR of 4.5%.
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