REG - ATOME Energy PLC - Distribution of IM, Carbon Credits Identified

AtomeAnnouncement

16/08/2023 07:00

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RNS Number : 4253J  ATOME Energy PLC  16 August 2023

16 August 2023

 

ATOME ENERGY PLC

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

 

Distribution of Information Memorandum for project financing

 

Generation of a significant amount of valuable carbon credits

 

New investor video and presentation released

 

Investor Meet Company Investor Presentation

 

ATOME (AIM: ATOM), the only international green hydrogen, ammonia, and
fertiliser project development company on the London Stock Exchange, with
current large-scale projects in Latin America and Europe, as well as hydrogen
mobility projects, announces an update on the financing of its Phase 1 Villeta
project ("the Project") as well as the emissions saving impact of the Project.

 

Highlights:

 

·   Information Memorandum ("IM") has been issued by Natixis Corporate &
Investment Banking, ATOME's international financial adviser, to potential
project financiers

·   Carbon footprint analysis indicates the availability of a significant
amount of carbon credit revenue generation, with some 500,000 credits
potential each year

·     Release of a new investor video and presentation on the Company's
website

·     Management to present to all shareholders via Investor Meet Company
on 6 September 2023

 

Distribution of Information Memorandum

 

ATOME is pleased to advise that Natixis Corporate & Investment Banking,
acting as international financial adviser to the Project, has issued an
Information Memorandum on the Company's behalf, and a virtual data-room has
been opened to provide access to numerous parties who have registered their
interest in the financing of the Project which will deliver 100% green
fertiliser to both South American and European markets. The IM contains key
information on all aspects of the Project and is a material step towards
securing project level funding in order to provide the Company with the
optimum funding solution, including with IDB Invest, the Washington DC based
multilateral for the Americas, already onboard with a signed mandate.

 

The IM is accompanied by a new investor video, a version of which is available
on the Company's website, along with a new corporate presentation, detailing
the history and rationale of the Project, together with interviews with the
CEO and other members of the executive team. The video also previews the
schematics of the world's first, 100% renewable energy powered, green calcium
ammonium nitrate ("CAN") production facility at Villeta.

 

https://www.atomeplc.com/media/ (https://www.atomeplc.com/media/)

 

The work towards Final Investment Decision ("FID") is progressing in line with
expectations, with engineering, procurement, and construction discussions with
contractors, the Environmental and Social Impact Assessment ("ESIA"), and
positive discussions with potential offtakers, all advancing well in parallel
with FID remaining on schedule for Q4 2023.

 

Carbon Credits

 

Initial carbon footprint analysis indicates a potential displacement of some
500,000 tons of carbon dioxide-equivalent ("CO(2)-eq") each year from the
production of green CAN fertiliser at Villeta when compared to the production
and use of "grey" CAN made from fossil-fuels. This analysis was performed
according to IPCC and GHG Protocol guidelines and is subject to verification
by an independent third-party.

 

As a result, the Company estimates that it has the potential to generate
approximately 500,000 valuable carbon credits each year. Over a 25-year
lifetime, this represents over 12 million credits generated, i.e., CO(2)-eq
displacement, being the equivalent of offsetting the annual emissions from 2.7
million passenger cars on the road.

 

The value of the credits will be verified subsequently by a third party as
this price is dependent on future market conditions, like any commodity. For
reference, carbon pricing under the European Union Emissions Trading System
("EU ETS") compliance market is regularly trading between €80 and €100 per
ton. From 2026, the introduction of the Carbon Border Adjustment Mechanism
("CBAM") in the EU will require importers of hydrocarbon-based ammonia and
fertiliser to buy certificates corresponding to such EU ETS pricing.

 

Investor Meet Company Presentation

 

ATOME is pleased to announce that Olivier Mussat, Chief Executive Officer of
ATOME, will provide a live presentation via the Investor Meet Company platform
on 6 September 2023 at 11:00am BST.

 

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9am the day before the meeting or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet
ATOME's senior management team via:
https://www.investormeetcompany.com/atome-energy-plc/register-investor
(https://www.investormeetcompany.com/atome-energy-plc/register-investor)

 

Investors who already follow ATOME Energy PLC on the Investor Meet Company
platform will automatically be invited.

 

Olivier Mussat, CEO, commented:

 

"Our Phase 1 Villeta project has clear sustainable development impacts,
creating local employment, value for Paraguay, and reducing greenhouse gas
emissions in the agricultural sector. With increasing climate pressure on the
fertiliser sector, the initial analysis of the potential carbon credits
generation suggests a potential significant stream of value-added revenue
creation.

 

"The issue of the IM to the interested funding parties is another major step
towards FID being delivered as projected in Q4 of this year.

 

"Our Project will, in the opinion of the directors, produce the world's most
affordable green fertiliser by the end of 2025. In this regard, our green CAN
will not only service the South American market but also much nearer home will
be able to service the farmers in the United Kingdom and Ireland, as well as
continental Europe, where our detailed research and discussions indicates
significant market demand for our product.

 

"We look forward to continuing the development of the project with our
stakeholders."

 

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

 Scott Mathieson, Kane Collings
 SP Angel (Joint Broker)                           +44 (0) 20 3490 0470

 Richard Hail, Harry Davies-Ball
 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 (mailto: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 hydrogen, ammonia,
and fertiliser production with over 600-megawatt of projects in Paraguay,
Iceland, and Central America.

 

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 145MW power purchase
agreement with ANDE, the state energy company in Paraguay for production of
green ammonia to produce industrial scale premium value green fertiliser in
2025. It has procured 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 the FEED study is
currently underway with the international companies Urbas and Casale.

 

In December 2022, ATOME entered into a 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, which is owned
equally by ATOME and Cavendish.

 

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 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 from May 2023,
Baker Hughes, a global energy technology company operating in the energy and
industry sectors.

 

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward looking statements.

 

-ends-

 

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