RCS - ATOME Energy PLC - ANDE Reports on London Visit

AtomeAnnouncement

13/02/2023 07:00

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RNS Number : 6488P  ATOME Energy PLC  13 February 2023

13 February 2023

 

ATOME ENERGY PLC

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

 

Paraguay National Electricity Administration (ANDE) Reports on London Visit

 

ATOME Energy (AIM: ATOM), the only pure international green hydrogen and
ammonia production company on the London Stock Exchange with current large
scale projects in Europe and South America as well as hydrogen mobility
projects, notes the announcement by Paraguay's National Electricity
Administration ("ANDE") concerning a top level visit to the UK which concluded
last week.  A translation of the announcement is set out below.

 

 

Paraguayan electricity opens doors for investments worldwide

 

The president of the National Electricity Administration, Eng. Félix Sosa,
accompanied by the Director of Planning and Studies, Eng. Tito Ocariz, and the
Financial Manager, Lic. Sonia Rojas, participated in round tables with
investors, bankers, engineers and representatives of the British government,
during a recent working visit to London.

 

The purpose of it was to deepen and promote the potential of green hydrogen in
Paraguay, as well as its value chain. Mr. Félix Sosa presented the state of
the Paraguayan electricity system, the level of investment that ANDE is
developing and the potential provided by clean and renewable electricity for
the development of the country.

 

The delegation headed by the head of ANDE held working meetings with the
investors of the ATOME Paraguay project, led by Mr. Peter Levine (President)
and Mr. Olivier Mussat (CEO) of that company, who were accompanied by the
Project Manager of Paraguay, Mr. Juan Pablo Nogués.

 

The ATOME project in Paraguay advances with the engineering design for the
green ammonia plant (derived from green hydrogen) in the city of Villeta,
where it will have the capacity to produce up to 100,000 tons of green ammonia
per year, with a projected start by 2025. This plant includes an investment of
approximately USD 200 million and the creation of approximately 4,000 jobs
directly and indirectly. The ATOME project in Villeta for its first phase aims
at about 120 MW of power, for the production of hydrogen and green ammonia.

 

In addition, representatives of the engineering companies AECOM, URBAS Energy
and CASALE participated in the meetings. These companies are assisting in the
design of the processes and construction engineering of the ATOME industrial
plant. The team of engineers gave the details of the potential of green
ammonia in Paraguay and mentioned that green ammonia can be used as a raw
material for the production of national green fertilizers at a lower cost and
with zero carbon footprint.

 

Currently, Paraguay, whose economy is highly dependent on the agricultural
sector, imports more than 1.4 million tons of fertilizers per year worth more
than USD 600 million. According to the engineers responsible for the project
in question, the green product will supply a large part of the country's
ammonia fertilizer market, thus creating a national product at a more
competitive price for the agricultural sector, thus promoting greater
agricultural productivity. Moreover, it was indicated that Paraguay could
become a net exporter of fertilizers.

 

The president of ANDE and delegation also visited the factory of Clean Power
Hydrogen (CPH2), a hydrogen technology company listed on the London Stock
Exchange, located in the city of Doncaster, accompanied by the Ambassador of
Paraguay in the United Kingdom, Genaro Pappalardo. During the visit they
observed the progress of the 1 MW electrolyzer that the company ATOME is
building for the project focused on the decarbonization of the transport
sector in Paraguay.

 

The ATOME electrolyzer is planned to arrive in Paraguay by the beginning of
the second half of this year and will initially be producing 450 kg of green
hydrogen per day, to supply light vehicles powered 100% hydrogen and
heavy-duty trucks that will be powered by a mixture of green hydrogen and
diesel, thus reducing dependence on imported fossil fuels and, therefore,
improving air quality.

 

In working meetings, President Félix Sosa explained to the bank Natixis about
the robustness of the Paraguayan electricity system, the competitive rate
offered by ANDE worldwide and the amount of investments indicated in the ANDE
Master Plan 2021 - 2030 for Transmission and Distribution, and 2021 - 2040 for
Generation Works. The head of ANDE also indicated that financing for
infrastructure works has been increased from an average of USD 50 million
during the first decade of the century to an average of USD 300 million during
the last three years, and for this year, the goal is to exceed that amount.
These investments will be key to providing reliability and robustness to the
system and also to be able to take advantage of 100% of ITAIPU's energy that
corresponds to Paraguay.

 

Finally, the president of ANDE held an audience with Minister Andrew Bowie,
from the Department of International Trade of the British government. Both
indicated their full intention to strengthen the exchange of knowledge between
countries to encourage investment in the green hydrogen sector to meet joint
goals of the countries, such as the decarbonization of the energy sector and
the use of national electricity for its sustainable development.

 

 

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)              +44 (0) 20 7628 3396
 Roland Cornish, Michael Cornish
 Liberum (Joint Broker)                            +44 (0) 20 3100 2000
 Cameron Duncan, Kate Bannatyne
 SP Angel (Joint Broker)                           +44 (0) 20 3490 0470
 Richard Hail, Caroline Rowe
 finnCap (Joint Broker)                            +44 (0) 20 7220 0500
 Christopher Raggett, George Dollemore
 Tavistock (Financial PR and IR)                   +44 (0) 20 7920 3150
 Simon Hudson, Rebecca Hislaire, Charles Baister   atome@tavistock.co.uk

 

About ATOME

ATOME Energy PLC is an AIM listed company targeting green hydrogen and
ammonia production with over 500-megawatt of projects
in Paraguay and Iceland, through its subsidiaries ATOME Paraguay, which is
wholly owned, and Green Fuel ehf, in which ATOME Energy holds a 75 per cent
interest, respectively.

 

Since its admission to AIM in December 2021 ATOME has signed its first
electrolyser purchase order for its hydrogen transport Mobility Division due
to start generating revenue in 2023 and signed a large scale 120MW power
purchase agreement with ANDE, the state energy company in Paraguay for
production of green hydrogen and ammonia targeted to start operations at or
around end 2024.

 

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 use electricity generated from existing geothermal
sources in Iceland and hydroelectric power in Paraguay. 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.

-ends-

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