REG - ATOME PLC - Definitive EPC Contract signed with Casale

AtomeAnnouncement

07/04/2025 07:00

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RNS Number : 8531D  ATOME PLC  07 April 2025

 

For immediate release

7 April 2025

 

ATOME PLC

("ATOME" or the "Company")

 

US$465 million Definitive EPC Contract signed with Casale

 

Flagship green fertiliser project on track for Final Investment Decision
("FID") and start of construction

 

·      Definitive EPC Contract signed with Casale S.A., the leading
specialist fertiliser and ammonia licensing,   engineering and construction
firm, for ATOME's Villeta Project in Paraguay

·      Signed contract follows Casale's appointment as EPC Contractor in
November 2024, demonstrating  ATOME's ability to deliver final agreements

·      Fixed-price, lump-sum contract value of US$465 million with
contracted time to start of production of 38   months from FID

·      Detailed engineering has already commenced, with teams being
mobilised in the lead-up to FID

·      Follows recent announcement on anchor and lead equity investment
for Villeta

·      Marks another major step towards Villeta FID targeted for end H1
2025

 

ATOME (AIM: ATOM), the leading developer of international green fertiliser
projects, is pleased to announce the signing of the US$465 million
fixed-price, lump-sum Engineering, Procurement and Construction ("EPC")
Contract ("Contract") with Casale for its 260,000 tonnes p.a. flagship green
fertiliser plant at Villeta, Paraguay ("Villeta" or the "Project"). The
Contract is believed to be the first entered into globally for a dedicated
green fertiliser facility of this scale and confirms ATOME's position as the
world's leader and frontrunner in specialist green fertiliser production.

 

Due to traditional fossil-fuel production methods, the fertiliser industry
emits 2.6 billion tonnes of CO₂ per year - more than the shipping and
aviation sectors combined. ATOME's flagship project in Paraguay will produce
260,000 tonnes of low-carbon fertiliser per year using 100% renewable baseload
power, significantly advancing decarbonisation of agriculture and food value
chains in the Mercosur region. Once constructed, the Villeta Project will
service a developed and ready market in the heart of the largest
food-producing region in the world, meeting critical demand for low-carbon
fertilisers from the agriculture and food sectors.

 

Olivier Mussat, CEO of ATOME, commented:

 

"ATOME is delighted to announce the signing of our EPC Contract with Casale,
on time and on track to our project schedule. This underscores our ability to
deliver final agreements and marks another milestone achieved as we advance to
reach FID for the Villeta Project towards the end of H1 2025. Casale is a
world leader in ammonia and fertiliser engineering, and I have every
confidence in the team as the right partners to deliver our flagship project
in Paraguay, the first green fertiliser facility of its kind."

 

"ATOME is addressing significant existing and projected demand for greener
alternatives to fossil-fuel-produced fertiliser. Our Villeta Project will be
our pathfinder as we continue executing on our wider pipeline of projects to
build the leading green fertiliser development platform."

 

Federico Zardi, CEO of Casale, commented:

 

"We at Casale are immensely proud to be an integral part of ATOME's
world-first green fertiliser Villeta project in Paraguay. For over a decade,
Casale has been advancing the development of CO₂ emissions-reduction
technologies in fertiliser production. Through these technological
advancements, we are delivering an extremely optimized design at Villeta,
setting a precedent for sustainable fertiliser production at costs that are
competitive with, or even lower than, conventional 'grey' fertilisers, paving
the way to a sustainable agricultural future."

 

"This partnership reaffirms our role as pioneers in the industry, consistent
with our historical trajectory and DNA. It is an honour to work alongside a
company that is as committed to innovation and sustainability as we are, and
we are confident in ATOME's ability to execute on this project, successfully
scaling and leading this first green fertiliser platform."

 

 

The EPC Contract

 

ATOME has entered into a definitive EPC contract with the leading
international ammonia and fertiliser contractor and technology owner, Casale
S.A, for the construction of the 260,000 tonnes p.a. flagship Villeta facility
in Paraguay.

 

The EPC Contract, which is conditional upon FID, has a fixed price lump sum
contract value of US$465 million with a contracted time to start of production
of 38 months from FID. In parallel, advanced engineering work has now started.
This is consistent with ATOME's timeline for Project start-up and first sales
of green fertiliser during 2028. The Contract is lump sum turnkey on the
standard of the Silver Book of the International Federation of Consulting
Engineers ("FIDIC"). This internationally recognised form of contract provides
the maximum degree of certainty in terms of costs and times, with the
contractor responsible for delivery of the Villeta facility ready to be used.

 

The main features of the Silver Book are:

 

(i)         The Contractor take responsibility for design

(ii)         The Contract is on a lump sum basis

(iii)        The possibilities for Contractors to request and obtain
adjustments are limited

 

ATOME was advised by AECOM, the multi-national engineering consulting
engineering group, and White and Case, the leading international law firm.

 

As a key gating item, ATOME's delivery of the signed definitive EPC contract
is a precursor to FID and start of construction. This marks the completion of
consecutive milestones following the recent signing of equity Heads of Terms
with Hy24 (announced 27 February 2025), the world's largest low-carbon
hydrogen asset manager, for up to $115 million as anchor and lead equity
investor into the project. The project finance discussions continue on track
for FID and start of construction in the summer.

 

The appointment of Casale, the Swiss-based international leader in ammonia and
fertiliser technologies and specialist in engineering and construction, is
consistent with ATOME's commitment to collaborate with outstanding technical
partners to deliver this first-of-a-kind project. Casale joins existing
industry leaders including Yara, Hy24, AECOM, Natixis, IDB Invest and ANDE as
partners to the Project.

 

The EPC contract value forms a part of the total estimated US$625 million
project cost as previously announced.

 

 

Casale S.A

 

Founded in 1921, Casale is a privately-owned Swiss company headquartered in
Lugano, Switzerland, with over a century of expertise in engineering and
technology for the chemical and fertiliser industries. With more than 450
professionals across Switzerland, the Czech Republic, China, India, the
United States, the United Arab Emirates and Brazil, Casale is a global leader
in sustainable fertiliser production technologies.

 

Currently, over 300 ammonia reactors operate with Casale technology, and the
company has provided licensing for around 80 nitric acid plants and 50
ammonium nitrate solution plants over the past 65 years.

 

Casale was one of two contractors selected to complete the Front End
Engineering and Design (FEED) study for the Villeta project, the world's first
fully green fertiliser facility on an industrial scale. This FEED study
involved approximately 100,000 engineering hours and the production of 619
individual documents and reports, underscoring Casale's comprehensive
expertise and commitment to innovation in sustainable technology.

 

Casale offers a full range of services, from revamping existing plants to
constructing new ones, consistently prioritizing continuous innovation and
operational excellence. Casale's ability to weave its deep commitment to the
research and development of clean technologies into every aspect of its
design, construction and renovation projects underlines its leadership in
energy transition and sustainability.

 

 

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

 

 ATOME 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

 Stifel (Joint Broker)                                     +44 (0) 20 7710 7600

 Jason Grossman, Ashton Clanfield
 SP Angel (Joint Broker)                                   +44 (0) 20 3490 0470
 Richard Hail, Jen Clarke
 FTI Consulting (Communications Adviser)                   +44 (0) 20 3727 1000

                                                         atome@fticonsulting.com (mailto:atome@fticonsulting.com)
 Elizabeth Adams, Ben Brewerton

                                                         +41 79 1782170
 Casale

                                                         press@casale.ch (mailto:press@casale.ch)
 Maria San Antonio Alonso, Marketing & Communication

                                                         marketing@casale.ch

 

 

MAR

 

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 PLC is an AIM-listed company targeting green fertiliser production with
445-megawatt of projects in Paraguay and a further pipeline of potential
projects in Central America. ATOME is in the early stages of developing a
significant green power generation and infrastructure business.

 

ATOME's first project in Villeta, Paraguay, benefits from a 145MW renewable
power purchase agreement and 43 hectares of land in a tax-free zone. Front End
Engineering Design studies have been completed and Heads of Terms signed with
Yara International, the leading international fertiliser company, for offtake
of all of Villeta's green fertiliser production. The Company is now
negotiating the project finance with a view to commencing work in 2025. There
is a further 300MW of renewable power reserved for ATOME in Paraguay.

 

In Costa Rica, The National Ammonia Corporation S.A. was formed in 2022 with
local partner Cavendish S.A. based in Costa Rica to develop green fertiliser
projects for the region. As well as straddling the Pacific and Atlantic
Oceans, Costa Rica is a democratic Central American country. In agriculture,
Costa Rica is the second largest supplier of pineapples in the world and is in
the top ten banana growers.

 

All power for ATOME is from 100% renewable sources and 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, Schroders, a leading fund manager, and Baker Hughes, a
global technology company operating in the energy and industry sectors.

 

Other information

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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