REG - ATOME Energy PLC - ATOME Paraguay Update

AtomeAnnouncement

09/01/2023 07:00

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RNS Number : 0127M  ATOME Energy PLC  09 January 2023

9 January 2023

 

ATOME ENERGY PLC

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

 

ATOME Paraguay Update

Locally Funded Land acquisition completed

FEED and FID on track

 

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 announces further progress for its subsidiary, ATOME Paraguay.

 

Highlights

 * The purchase of the 30 hectare site for the Villeta project now completed

 * Purchase funded with market competitive commercial mortgage from a leading
Paraguay bank

 * Front End Engineering Design ("FEED") study progressing with AECOM, ATOME's
project manager

 * Final Investment Decision ("FID") on track for Q2 2023: Natixis CIB has issued
teaser for project funding of the Villeta facility with significant interest
already shown

 * As a step towards FID, global energy and chemicals advisory company NexantECA
has been appointed as market consultant

 

Land acquisition completed

 

Following the announcement made by ATOME on 5 September 2022 regarding the
procurement of the 30 hectares (75 acres) of land for the Company's Villeta
green hydrogen and ammonia project facility, ATOME is pleased to announce that
it has completed the acquisition of the land for US$900,000 (Nine Hundred
Thousand US dollars).

 

Sudameris Bank, a leading Paraguay bank, has provided a market competitive
commercial mortgage to fund the acquisition with payment terms tailored to
project flows. This is ATOME's first borrowing facility which further
demonstrates the rapid progress of the Villeta project and reflects the
credibility of ATOME in Paraguay as well as showing the commitment of
Sudameris to promote clean energy in Paraguay's transition to a greener
economy.

 

Villeta project FEED and FID process update

 

Further to ATOME's announcement made on 1 December 2022 regarding entering
into the FEED contract, the related study work led by international
contractors Urbas and Casale underway with AECOM, the international
engineering consultancy acting as ATOME's Owners Engineer, project managing
the process for the Company.

 

With a fast track schedule, FID remains projected to take place during Q2
2023. As part of the necessary prelude to this, in December Natixis CIB,
ATOME's international financial advisor, sent out a teaser on the world scale
green hydrogen and ammonia Villeta project to substantial infrastructure and
green funds, multi-laterals, industry players and relevant institutions.

 

On the back of the teaser, significant amount of interest has already been
shown in Villeta including the important feature of utilising baseload 24/7
existing power to enabling ATOME to expeditiously progress to full production
of 100,000 tonnes of green ammonia in 2025.

 

ATOME, which is fully funded to FID of the Villeta project, is therefore
optimistic that it will be able to successfully fund the 120MW facility within
the specific purpose Villeta project vehicle without the need of direct
funding into the vehicle by ATOME. This will crystalise and unlock the
significant value built up by ATOME in the Villeta project and minimise
dilution in the public parent company allowing ATOME as a group to focus on
other strategic opportunities in green hydrogen and ammonia production which
are now actively being pursued.

 

 

Market consultant appointed

 

Another necessary step towards FID has also been taken by ATOME, with the
appointment of NexantECA to provide an independent market view of global grey
and green ammonia market.  NexantECA is a leader in the provision of market
dynamics and pricing data in both established and emerging energy transition
markets such as green ammonia. Its data is used by energy, refining, and
chemical industries and financiers. As well as being required by potential
funders of Villeta, the study will provide key data for ATOME's ammonia
marketing strategy as it seeks to maximize the value for the production from
Villeta.

 

Olivier Mussat, CEO of ATOME, commented:

 

"With the land aquisition now completed following the support of Sudameris
Bank and the appointment of NexantECA to conduct a market study, ATOME
continues to deliver on its milestones to FID. The Company looks forward to
working with Sudameris Bank in the future on Paraguayan green energy projects
and is appreciative of the Bank's foresight in supporting the drive towards a
green economy in the country. We are also advancing on the project funding
process and seeing significant amount of interest from international financial
sources on funding the green hydrogen and ammonia Villeta project led by our
 Financial Adviser Natixis CIB, one of the world leaders in hydrogen and
energy infrastructure funding."

 

Conor McEnroy, Chairman of Sudameris Bank commented:

 

"We are pleased to back this UK foreign direct investment project for green
energy and green fertilizer in Paraguay.

 

Paraguay is a leader in green energy in the Americas with 100% of electricity
generated from renewables. The installation of Atome's large-scale green
hydrogen and ammonia plant benefitting from the country's baseload green
hydro-power is perfectly aligned with Paraguay's declared sustainable policies
for industry, transportation and farming, together with its objective to be at
the forefront of decarbonisation in South America."

 

Mais Haddadin, Global Sustainbility Lead of NexantECA commented:

 

"It is our pleasure to support ATOME on their journey by providing a clear and
independent outlook of how this market will likely evolve.  Green ammonia
will play a key role in the decarbonisation pathway of numerous industries
assisting in meeting the climate neutrality commitments. NexantECA is
committed to supporting ATOME and the industry transition towards carbon
neutrality and more sustainable pathways with lower GHG emissions, clean
energy and the circular economy."

 

 

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

 

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.. 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 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 in
 2025.

 

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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