RCS - ATOME Energy PLC - ATOME Mobility Update

AtomeAnnouncement

24/10/2022 07:00

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RNS Number : 7926D  ATOME Energy PLC  24 October 2022

24 October 2022

 

ATOME ENERGY PLC

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

 

ATOME MOBILITY PROGRESSES - INCOME TO START NEXT YEAR

 

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 a hydrogen
mobility division, is pleased to announce further progress on its mobility
project in Paraguay.

 

CPH2 1MW Electrolyser

Clean Power Hydrogen PLC ("CPH") has informed ATOME that it expects to ship
the ordered 1MW electrolyser by the end of Q1 2023.

 

Apart from the deposit already paid of US$300,000, no further payments in
respect of the electrolyser are due until Q1 2024 at which time CPH has agreed
to upgrade the electrolyser at its own cost with the latest technology now
being planned for its series 2023 models.

 

The electrolyser will be located at the industrial premises of Yguazu Cementos
in the Villa Hayes district, being one of the largest cement works in Paraguay
with appropriate access to water and electricity, located just outside of
Paraguay's capital Asuncion, the largest hub for hydrogen mobility in the
country.

 

As stated by CPH in their half year results announcement on 23 September 2022,
ATOME has signed with CPH a Letter of Intent relating to discussing a
potential joint venture assembling electrolysers in South America using the
technology of CPH. If such venture comes to fruition, ATOME would leverage on
the engineering expertise of its partners in the region to whom financial as
well as operational responsibility would be assigned leaving ATOME to deploy
its resources on its core business of production and sales of green hydrogen
and ammonia.

 

Passenger Vehicles

In 2023, ATOME intends to bring in zero emission hydrogen passenger vehicles
on a progressive basis. Particularly ideal for the Paraguay transport
environment with long distance passenger and commercial travel and virtually
non-existent roadside electric charging points outside urban areas, these zero
emissions passenger vehicles have a range of approximately 700km on one tank
of some 6-7kg of hydrogen which can be fully filled in under 5 minutes.

 

According to the IEA, in South America, the transport sector is responsible
for 35% of total yearly CO2 emissions and is a potential market for over
200,000 tons of hydrogen per year. ATOME recognises that the market for
hydrogen vehicles requires careful education and whilst it is not in its
medium-term business model to own or operate fleets of any types of hydrogen
vehicles itself it recognises the initial acquisitions are a necessary step to
accelerate the creation of the hydrogen mobility market.

 

The mode of shipping of the vehicles to Paraguay has been identified with a
mobilisation length from purchase of approximately 2-3 months with delivery
timed to be with the commissioning of the new electrolyser. The Company will
start with a first batch of four vehicles and have already identified primary
users for the vehicles thereby laying off their purchase cost and operating
responsibility, such vehicles using ATOME's hydrogen fuel thereby generating
first hydrogen sales for ATOME in 2023.

 
Commercial Vehicles

Hydrogen commercial long-range vehicles are now being built by an increasing
number of major international manufacturers recognising that hydrogen is the
only practical solution for zero emission heavy transport. However, the
current costs of such turnkey vehicles remain high, even for areas such as
Europe which benefit from significant grants, allowances, and subsidies.

 

Accordingly, the Company is currently working with partners on innovative
solutions as to a step-by-step introduction of hydrogen fuel in heavy
transport on a cost effective and efficient basis. The geography and logistic
position of Paraguay combined with renewable 24/7 available low energy costs
are important factors in the country being a fertile place for zero emission
hydrogen-powered long-distance transport.

 

In a similar manner, another potential high growth market is the conversion of
existing forklift trucks to run on hydrogen thereby cutting out the need for
each forklift to have three batteries (one used, and two on standby) as well
as safe storage facilities and disposal issues for such. Hydrogen forklift
technology has been at the forefront of hydrogen mobility for several years
and such powered forklifts are now widely used by leading international
companies including Amazon and Walmart globally.

 

Olivier Mussat, CEO, commented: "Whilst our flagship industrial scale hydrogen and ammonia project in Villeta in Paraguay progresses rapidly, generating significant interest both domestically and internationally with a constant flow of positive news, our more modest Mobility division, servicing the unique zero emission transport needs of the country is leading the way for the first ever green hydrogen sales in Paraguay and making significant progress on many levels with limited capital exposure and a beneficial financial and income generative structure commencing next year.

 

"With ATOME Mobility, we are at the forefront of a US$2+ billion per year
zero-emission hydrogen mobility market potential in South America. Our
expertise as a developer of green hydrogen generation is fundamental and we
believe our unique cost-efficient model will provide us with a blueprint model
to roll out in other appropriate countries that meet our investment criteria."

 

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

 

 ATOME Energy PLC                                  +44 (0) 113 337 2210

 Nikita Levine, Investor Relations                 info@atomeplc.com (mailto: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, Kane Collings
 SP Angel (Joint Broker)                           +44 (0) 20 3490 0470

 Richard Hail, Caroline Rowe
 finnCap (Joint Broker)                            +44 (0) 20 7220 0500

 Christopher Raggett, Tim Harper
 Tavistock (Financial PR and IR)                   +44 (0) 20 7920 3150

 Simon Hudson, Rebecca Hislaire, Charles Baister   atome@tavistock.co.uk (mailto:atome@tavistock.co.uk)

 

About ATOME

ATOME Energy PLC is an AIM listed company targeting green hydrogen and ammonia
production with over 400-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 60MW 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.

 

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