REG - ATOME PLC - Significant progress on green fertiliser project

AtomeAnnouncement

14/02/2024 07:00

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RNS Number : 0253D  ATOME PLC  14 February 2024

14 February 2024

 

ATOME PLC

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

 

Significant progress on Costa Rica major green fertiliser project

 

Framework Collaboration Agreement signed with ICE, Costa Rica's state-owned
power company

 

Meeting with President of Costa Rica demonstrates Government endorsement for
the project

 

ATOME (AIM: ATOM), the only international green fertiliser project development
company on the London Stock Exchange, is pleased to announce material
progress made by its Central America company, National Ammonia Corporation
S.A. ("NAC"), relating to a green fertiliser project in Costa Rica.

 

Summary:

·   ATOME's Central America company, National Ammonia Corporation S.A.
("NAC") has entered into a Framework Collaboration Agreement ("the Agreement")
with Instituto Costarricense de Electricidad ("ICE"), the Costa Rican state
power company to evaluate feasibility for the power supply to a green ammonia
and fertiliser project ("the Project").

·   The Agreement is the necessary and significant first step in securing
100% renewable baseload electricity for the country's first industrial scale
green ammonia and fertiliser project.

·    The endorsement from the President of Costa Rica, Mr Rodrigo Chaves,
along with key members of his cabinet demonstrates the commitment to
attracting foreign direct investments and a recognition of ATOME's proven
strategy of developing fertiliser projects with significant local impact.

·   Costa Rica is an optimal location for green fertiliser production with
its existing renewable power, premium agricultural industry, and strategic
regional position combined with access to both Pacific and Atlantic Ocean
ports.

·   The Project will be of a similar size to ATOME's Villeta Project,
leveraging  the key learnings to date, further validating the Company's
strategy for replicating and deploying green fertiliser production at scale,
positioning ATOME as a leading developer of such projects in Latin America.

 

Framework Collaboration Agreement

NAC, a company whose shareholders comprise ATOME and Cavendish S.A, a local
green-focussed business, has entered into a Framework Collaboration Agreement
with ICE, the Costa Rican state power company.

 

The parties will work together on feasibility, design, and technical and
economic assessments for the Project, including the development of a roadmap
which both parties undertake to implement. An agreement for renewable power
for the Project is expected to be entered into following the conclusion of the
studies in H2 2024.

 

The significance of the Project and ATOME's participation was underlined in a
meeting in late January between Olivier Mussat, CEO of ATOME, and Rodrigo
Chaves, President of Costa Rica. Other participants in the meeting were the
President of ICE, the Minister of Energy and Environment, the Minister of
Foreign Trade, the Vice Minister of Agriculture and other key governmental
figures. Led by President Chaves, a clear expression of interest was shared to
bring this Project to Costa Rica, considering the location in a rural area and
sustainable development impact of the project including significant jobs
creation.

 

Costa Rica

Costa Rica is a stable democracy with an open economy and deep trade
relationships with the UK and the United States. Costa Rica's electricity grid
is 99% powered by renewable sources and managed by ICE, making it one of the
greenest countries in the world and thereby enabling the Project to comply
with existing rules and definitions on 'green' production (for example, EU RED
II).

 

Costa Rica is a major world food producer. The country is the world's largest
supplier of pineapples, in the top ten banana growers, and a premium coffee
producer, to name only a few of its products. Whilst exporting c.US$1.6
billion worth of agricultural products in 2023, Costa Rica is entirely
dependent on imported fertiliser to sustain its food industry with farmers
consuming 4.5 times the world average per hectare of arable land. The
country's strategic location between the Pacific and Atlantic Oceans with
ports in each ocean separated only by 240 kilometres, provides access not just
to Latin America but also North America, including California, as well as Asia
and Europe.

 

Strategy

Progress in Costa Rica further validates ATOME's strategy of project
development in geographies with available renewable power, access to existing
infrastructure and logistics, and significant domestic and export potential
for green ammonia-based fertiliser.

 

The Project is expected to leverage major advancements made at the 145MW
Villeta Project in Paraguay, benefitting from key learnings and therefore
optimising project development costs and timelines.

 

ATOME now has three industrial scale green ammonia and fertiliser projects in
development in Central and South America and has positioned itself as the
leading player in green hydrogen-based agriculture products in these
territories.

 

In Iceland, ATOME has decided to develop its projects through its wholly-owned
UK subsidiary, ATOME Iceland Limited. As a result, ATOME is conducting a
voluntary members (solvent) winding up of the Company's previously 75% and
subsequently wholly owned Icelandic subsidiary, Green Fuel ehf which is
expected to have an immaterial financial effect.

 

Olivier Mussat, ATOME's CEO, commented: "Within a year since the creation of
NAC, thanks to the significant progress on our Villeta project and our strong
local team led by Cavendish SA, we have been able to establish an excellent
working relationship with ICE with the aim of building Costa Rica's first
green fertiliser facility.

 

"There is a substantial local market for the fertiliser we intend to produce
as well as being strategically located to access global markets. Costa Rica is
viewed as a prime investment destination with significant existing foreign
investors such as Intel, Microsoft, and Amazon.

 

"Whilst the 145MW Villeta Phase 1 Project remains the near term priority of
the team, the progress made on Costa Rica is significant news for ATOME.
Beyond adding another flagship project to our pipeline, it is a demonstration
of ATOME's business plan and its growing reputation as a world leader in green
fertiliser. It also shows that ATOME's own developed technical and commercial
IP is able to be replicated on a cost-effective basis elsewhere giving us a
significant edge in speed of mobilisation, costs and efficacy."

 

For more information, please visit https://www.atomeplc.com
(https://www.atomeplc.com) or contact:

 

 ATOME 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
 SP Angel (Joint Broker)                          +44 (0) 20 3490 0470
 Richard Hail, Caroline Rowe, 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, Rebecca Hislaire, Saskia Sizen     atome@tavistock.co.uk

 

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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 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.

 

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, The National Ammonia Corporation S.A. was formed in 2022 with
Cavendish S.A., a local green-focused business, based in Costa Rica to develop
green fertiliser projects for the region. 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 fertiliser at an industrial scale
using electricity generated from 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, 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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