REG - ATOME Energy PLC - Update on Mobility Division

AtomeAnnouncement

28/11/2023 07:00

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RNS Number : 8230U  ATOME Energy PLC  28 November 2023

28 November 2023

 

ATOME ENERGY PLC

("ATOME", "the Company", or "the Group")

 

Update on Mobility Division

 

ATOME Energy (AIM: ATOM), the only international green fertiliser project
development company on the London Stock Exchange, notes the RNS announcement
made by Clean Power Hydrogen Plc ("CPH2") today in relation to the previous
production order made by the Company in March 2022. This order was for a 1MW
electrolyser from CPH2 slated at that time for a hydrogen mobility project of
ATOME.

 

Since that time in March 2022, ATOME's focus has transitioned to large scale
green fertiliser projects which now extend to some 650MW of 100% renewable
power across its portfolio, principally in Latin America. In particular, the
145MW Villeta project in Paraguay with its 24/7 baseload power from the grid
has now developed into a major project on its own with FEED study (Front End
Engineering Design) nearing completion, substantive discussions with EPC
contractors at an advanced stage and indicative offers for the debt funding of
such project pointing to substantial oversubscription.

 

The former mobility project is now seen as a diversion from ATOME's core focus
on delivering industrial scale green fertiliser, where the Company will be one
of the first in the marketplace to meet existing demand in both South America
and Europe from 2025. Accordingly, as the CPH2 electrolyser for the mobility
project has not yet been delivered, the Company has mutually agreed to cease
the order without penalty or other payout to CPH2. This allows CPH2 to
concentrate on near home markets and its current partner licences. The deposit
of US$300,000 has been returned to ATOME.

 

Relations with CPH2 remain good and ATOME is pleased to note the announcement
made today in relation to electrolysers of CPH2 by G-Mobility, a subsidiary of
Green House Capital, currently part of Molecular Energies PLC. The potential
for hydrogen mobility in Paraguay remains valid and ATOME looks forward to
seeing hydrogen fuelled trucks transporting its products in South and Central
America.

 

Olivier Mussat, CEO, commented:

 

"With green fertiliser now firmly at the core of ATOME's strategy, the mutual
termination of the arrangements with CPH2 allows ATOME to mobilise all its
resources and energy on its world class green fertiliser business whilst
permitting CPH2 to concentrate on its home markets."

 

 

For more information, please visit https://www.atomeplc.com
(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)          +44 (0) 20 7628 3396
 Roland Cornish, Michael Cornish
 Liberum (Joint Broker)                        +44 (0) 20 3100 2000
 Scott Mathieson, Kane Collings
 SP Angel (Joint Broker)                       +44 (0) 20 3490 0470
 Richard Hail, Harry Davies-Ball
 Cavendish Capital Markets Limited (Broker)    +44 (0) 20 7220 0500
 Simon Hicks, George Dollemore
 Tavistock (Financial PR and IR)               +44 (0) 20 7920 3150
 Simon Hudson, Charles Baister, Saskia Sizen   atome@tavistock.co.uk

 

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
acquired 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 Costa Rica, ATOME has a green fertiliser 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. As well as
straddling the Pacific and Atlantic Oceans, Costa Rica is a democratic Central
American country. In agriculture, Costa Rica is the second largest supplier of
pineapples in the world and is in the top ten banana growers.

 

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.

 

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