REG - ATOME Energy PLC - Villeta Project Update - FEED and 120MW

AtomeAnnouncement

01/12/2022 07:00

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RNS Number : 1743I  ATOME Energy PLC  01 December 2022

1 December 2022

 

ATOME ENERGY PLC

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

 

Significant progress achieved at the Villeta Project, Paraguay

ATOME at the forefront of green hydrogen and ammonia production in Latin
America

Investor Meet Company Presentation

 

ATOME Energy (AIM: ATOM), the company focused on green hydrogen and ammonia
production globally with projects in both Europe and South America is pleased
to announce the expansion of its flagship green ammonia production project in
Villeta, Paraguay from 60MW to 120MW. This doubling of capacity will enable
the facility to produce up to 100,000 metric tonnes (MT) of green ammonia per
year once operational within 30 months from now.

 

The Company also announces the appointment of internationally recognised
engineering firms as Front-End Engineering Design ("FEED") contractors for the
newly world-scale Villeta Project. The consortium will, on a fast-track basis,
complete their study by early Q2 2023 with Final Investment Decision ("FID")
to follow thereafter.

 

Highlights

 * ATOME's green hydrogen and ammonia Villeta Project expanded to a world-scale
120MW capacity capable of producing up to 100,000 MT of ammonia per year

 * Villeta with first production within 30 months from now is the largest
announced green hydrogen and ammonia project in Latin America based on 100%
renewable power available today

 * ATOME appoints global leader in ammonia Casale with internationally recognised
engineers Urbas Energy-Ingeser and TSK working in cooperation as its FEED
Consultant for Villeta Project

 

Villeta Project doubled to 120MW renewable 24/7 baseload power capacity

Further to the May 2022 60MW Power Purchase Agreement ("PPA") signed with
ANDE, the Paraguayan National Power Company, post the Company's December 2021
IPO, the PPA has by agreement with ANDE now doubled in capacity to 120MW of
available 24/7 baseload 100% renewable power for its Villeta Project. This is
the largest PPA ever signed between ANDE and an industrial user and will
enable the facility to produce up to 100,000 MT of green ammonia per year.

 

As the world population has reached 8 billion people, the demand for
fertiliser keeps increasing and driven by this and increased industrial
demand, the current global ammonia market of 178 million tonnes is expected to
grow nearly 40% by 2050(1). With exponential need to reduce carbon emissions,
the demand for green ammonia, currently a small part of ammonia produced, is
set to grow at a compound annual growth rate of 72% between 2023 and 2032(2).

(1) Export Market Research Report for 2022 - 2027

(2) Future Market Insights Report August 2022

 

ATOME remains on track to commence full production in the first part of 2025
with the available renewable power meaning that ATOME has no need to build its
own power generative capability thereby saving material time and resources and
in turn placing ATOME at the forefront in terms of production and trading of
green hydrogen and ammonia in Latin America. In planning the project, ATOME
will use established and well proven production technologies, including
alkaline electrolysers, to mitigate operational risks, costs, and delays, with
such technology being chosen for the Villeta Project inter alia for
consistency and reliability against yet proven technologies at scale.

 

The Villeta Project is the first phase of the Company's total planned 420MW
pipeline in Paraguay. The 120MW Villeta Project is expected to be the largest
dedicated green ammonia facility in Latin America by the time it is
operational in 2025 and is the largest announced in that region to date based
on currently available renewable power.

 

The 120MW green ammonia facility will be hosted on the 75-acre Villeta site
acquired earlier this year being adjacent from ANDE's newly built and
commissioned substation. The site itself is situated within several kilometres
of the navigable Paraguay-Parana Waterway with major port, industrial and
agricultural centres nearby.

 

Appointment of the international FEED Consultant Urbas Energy-Ingeser, in
cooperation with Casale and TSK

 

ATOME has, after a highly competitive international tender, appointed its FEED
contractor for the 120MW green hydrogen and ammonia facility at Villeta,
Paraguay, placing ATOME firmly on the road leading to commencement of
production in the first part of 2025.

 

FEED is a recognised and necessary engineering design approach used to control
project expenses and thoroughly plan a project with the intent of avoiding
significant changes to the build-out phase and reflecting the project-specific
requirements. The FEED results are used as a necessary basis of proceeding to
the execution of construction to completion.

 

The Consultant for the FEED is the Spanish engineering firm Urbas
Energy-Ingeser, with wide experience delivering projects in Latin America, in
cooperation with TSK, who have an extensive track record of integrating and
delivering international infrastructure energy projects on a world scale, and
Swiss company, Casale. Casale was established over a century ago and is among
the few licensors that can provide integrated engineering and technology
solutions for the full production chain of nitrogenous and phosphate
fertilisers including ammonia.

 

It is scheduled that the full FEED study for the now enlarged 120MW facility
will be completed in Q2 2023 enabling ATOME to move expeditiously in that
quarter to FID with the facility on track to be fully operational within 30
months from now.

 

Olivier Mussat, CEO at ATOME, commented: "We are grateful for the confidence
that ANDE is showing in ATOME by increasing our power supply to 120MW,
enabling Paraguay to become the leader on the continent in the fast-growing
green hydrogen economy.

 

"In parallel, we are announcing that, after a competitive tender process
including some of the leading engineers in the field, we have appointed as
FEED contractor, a very strong consortium of engineering and industrial
companies with a track record of delivering ground-breaking energy projects
across Latin America and the world, combined with unparalleled expertise in
the ammonia sector. In choosing UrbasEnergy-Ingeser, TSK and Casale, we have
the confidence that they can deliver on time and on budget as they have real
expertise along the entire project value chain and on the ground.

 

"The enlarged 120MW project with its early date to commence full production
will benefit from significant economies of scale, making our production of
green ammonia even more attractive in the global markets looking to source
green energy and green fertilisers."

 

Juan Antonio Acedo, President and CEO at URBAS, commented: "We are honoured to
have been selected by ATOME to carry out the front-end engineering design for
this landmark project in Paraguay and in Latin America, and proud to
participate and to contribute to one of the most reliable green ammonia
projects in the world. It is strategic for URBAS and INGESER to give priority
to pioneer projects based on decarbonization and sustainable energy, bringing
competitive alternatives to fossil fuels today."

 

Mr Federico Zardi, CEO of Casale, added: "Our passion and the driving force
behind our business has always been to make a mark in providing viable and
workable solutions to help protect our environment while producing the
chemicals that are at the root of our lives.

 

"We are therefore honoured and excited to be on board of this ambitious and
landmark project for South America which, capitalizing on our long-term
experience and leveraging our newest green technologies, aims at establishing
a world-scale ammonia and hydrogen production plant in a fully sustainable
way, leading the path towards further developments in the region".

 

Investor Meet Company Presentation

ATOME Energy PLC 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 December 2022 at 11:00am GMT.

 

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.

 

 

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, 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 Dollomore
 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 and ammonia
production with 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.

 

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