REG - ATOME PLC - Definitive Offtake Agreement signed with Yara

AtomeAnnouncement

12/09/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250912:nRSL0448Za&default-theme=true

RNS Number : 0448Z  ATOME PLC  12 September 2025

 

For immediate release
 
12 September 2025

 

ATOME PLC

("ATOME" or the "Company")

 

Definitive Offtake Agreement signed with Yara to purchase entire production
from the Villeta Project

 

Completes final commercial step prior to finalising funding expected later
this year

 

Construction for US$630 million Villeta project targeted to commence in Q4
2025

 

 

ATOME (AIM: ATOM), the world-leading low-carbon fertiliser developer and the
UK's only dedicated international industrial scale low-carbon fertiliser
company, announces the signing of the definitive minimum 10-year offtake
agreement ("the Agreement") with Yara International ASA ("Yara") for the sale
by ATOME and purchase by Yara of the entire 260,000 tonne-per-year low-carbon
fertiliser production, based on 100% renewable power, at the Villeta
Project in Paraguay ("Offtake").

 

Highlights

 

 •    Definitive Offtake Agreement signed with Yara for the committed purchase of
      the entire 260,000 tonne-per-year low-carbon fertiliser production, based on
      100% renewable baseload power, from the Villeta Project ("Villeta" or
      "Project")
 •    Yara, headquartered in Oslo, Norway, is the world's leading crop nutrition,
      production and distribution company of fertiliser and ammonia products and is
      at the forefront of decarbonisation in its industry
 •    The Agreement is for 10-years with an option to extend
 •    ATOME to benefit from Yara's market-leading distribution network in South
      America
 •    The entry into the Definitive Offtake Agreement marks the completion of the
      last commercial milestone before declaring FID later in the year
 •    ATOME continues to advance progress on finalising the project finance for the
      US$630 million Villeta Project, with start of construction targeted to
      commence in Q4 2025 and further announcements expected in due course

 

The Agreement

The Agreement reflects the Heads of Terms entered into with Yara, as announced
on 24 July 2024, to which investors are referred. The term of the Agreement is
10 years with an option to extend. The term as well as the committed purchase
nature for all of ATOME's production underpins the long-term success and
profitability of the Project, aligning all parties, underscoring the
bankability of the project for lenders and validating ATOME's business model.

Yara and ATOME will work together to maximise market potential and the premium
value proposition of ATOME's low-carbon product, benefitting from Yara's
extensive sales, marketing and distribution network, combined with decades of
experience in relevant markets.

 

Ready and willing market for low-carbon fertilisers

Villeta is expected to produce low-carbon Calcium Ammonium Nitrate ("CAN")
fertiliser, made from green ammonia produced from 100% renewable baseload
hydropower, at industrial scale, without reliance on subsidies or grants, and
close to major demand centres, providing global food producers with much
needed cost-effective solutions to decarbonise their supply chains. Situated
at the heart of Mercosur, the world's largest fertiliser import market, with
the Argentinian and Brazilian market on its doorstep, Villeta, as the
first-of-its-kind project in the region, will disrupt the world's largest net
food-exporting region's heavy reliance on imported, fossil-fuel-based
fertilisers - much of it still coming from Russia and China - helping to
advance both regional climate and food security goals.

Approximately one-third of human-caused greenhouse gas (GHG) emissions are
linked to food production according to United Nations' data
(https://www.nature.com/articles/s43016-021-00225-9) . Today, fertiliser use
and production is the source of more emissions than the shipping and aviation
industries combined. ATOME's low-carbon Calcium Ammonium Nitrate product will
contribute to decarbonising the food sector from the bottom up, getting to the
root of the food value chain's emissions. ATOME's fertiliser is both clean and
promotes high crop yields - unlike conventional nitrogen fertilisers, such as
urea, which have a heavy carbon footprint.

As a first-mover in marketing low-carbon fertiliser alternatives, Yara sells
low-carbon fertiliser directly into the agricultural supply chains of the
world's largest food and beverage companies. The offtake agreement will see
ATOME benefit from Yara's expanding commercialisation of low-carbon products.

 

Next step to Final Investment Decision ("FID")

The achievement in signing of the Agreement represents the last commercial
milestone in ATOME's path to FID. This comes after the successful completion
of a succession of other key commercial gating items, including the signing of
the US$465 million fixed-price, lump-sum Engineering, Procurement and
Construction contract with Casale. Following the announcement of Hy24 as the
anchor equity investor, we are now progressing the constitution of the equity
club in parallel with the constitution of the senior lenders' syndicate. FID
and start of construction remains targeted for before the end of the year and
it is anticipated that further announcements in this regard will be made in
due course.

 

Terje Bakken, Director for Ammonia and Fertiliser Markets, commented:

"ATOME is pleased to sign this definitive and final offtake agreement with
Yara, the global leader in crop nutrition. We know that making the switch to
low-carbon fertiliser is one of the most effective ways to reduce food
production emissions. The agreement with Yara is an important validation of
our commercial model, underpinned by the market case for the world's biggest
food and beverage producers to urgently address agricultural emissions in
their supply chains.

ATOME is pleased to have established a strong and mutually beneficial
relationship with Yara. We look forward to fostering our partnership and
remain grateful for the hard work and trust of the Yara team."

 

Olivier Mussat, CEO, commented:

"Our partnership with Yara, now in final and definitive form, is a landmark
milestone in the delivery of our Villeta Project in Paraguay. We are immensely
proud to be a part of this first-of-its-kind agreement, the largest low-carbon
fertiliser supply agreement globally, which clearly demonstrates the
commercial demand for ATOME's low-carbon fertiliser.

As we progress on our broader pipeline of projects alongside Villeta, ATOME
continues to collaborate with world-leading project partners and offtakers to
facilitate the distribution of our green molecules, disrupt traditional
commodity markets and pave the way for a cleaner, more sustainable future."

 

Chrystel Monthean, EVP Americas at Yara, commented:

"Yara's ambition is to contribute to 'growing a nature-positive food future',
profitably. Yara has for many years been working on this challenge with
farmers, cooperatives, and distributors in our South American markets. With
this local supply of fertilisers based on renewable energy, we will strengthen
our portfolio which, in combination with our agronomical knowledge, will allow
us to respond competitively to market demand.

We are looking forward to continuing this strategic, long-term relationship
with Atome."

 

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

 

 ATOME 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
 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

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

 

 

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 has now created its ATOME POWER division
which is in the early stages of developing a significant green power
generation and infrastructure business. ATOME's projects are situated at the
heart of one of the world's largest food export hubs - the Mercosur region in
the Southern Cone of South America with the Argentinian and Brazilian markets
next door. ATOME's production will disrupt the region's heavy dependence on
imported fossil fuel generated fertilizer, contributing to regional food
security goals.

ATOME's first project in Villeta, Paraguay, benefits from a 145MW renewable
power purchase agreement and a 30-hectare site in a tax-free zone, with an
option already secured to purchase an additional 13 hectares of adjacent land.
Front End Engineering Design studies have been completed and the Definitive
Offtake Agreement signed with Yara International, the leading international
fertiliser company, for offtake of all of Villeta's green fertiliser
production. In early 2025, ATOME announced Hy24, the leading clean hydrogen
asset manager, as anchor and lead equity investor in the project, and
confirmed the signing of the US$465 million fixed-price EPC contract with
leading ammonia and fertilizer engineering specialist Casale S.A. The Company
is now negotiating the project finance with a view to commencing work in 2025.
There is a further up to 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. Approximately a third of
human-caused GHG emissions is linked to food production according to UN data,
and fertiliser use and production is the source of more emissions than the
shipping and aviation industries combined. ATOME's green Calcium Ammonium
Nitrate product will contribute to decarbonising the food sector from the
bottom up, getting to the root of the food value chain's emissions. ATOME's
renewably-generated fertiliser is both clean and promotes high crop yields,
unlike conventional nitrogen fertiliser which has a heavy carbon footprint.

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.

 

-ends-

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRDFLFFEKLEBBQ