REG - ATOME PLC - EPC Contractor Nominated

AtomeAnnouncement

14/11/2024 07:00

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RNS Number : 1662M  ATOME PLC  14 November 2024

 

For immediate release

14 November 2024

 

ATOME PLC

("ATOME" or the "Company")

 

EPC Contractor Nominated as Project Financing Progresses

 

Appointment of Head of Engineering and Project Management

 

ATOME (AIM: ATOM), the leading developer of international green fertiliser
projects, announces its nomination for Engineering, Procurement and
Construction ("EPC") contractor for its 145MW Villeta Project ("Villeta" or
"the Project") in Paraguay, capable of producing approx. 260,000 tonnes per
year Calcium Ammonium Nitrate, and provides an update on continued progress on
project finance negotiations.

 

Pictured: ATOME and Casale at Casale's Lugano headquarters (credit: ATOME).

 

EPC Contractor

 

After lengthy consultations, ATOME has selected Casale S.A ("Casale"), a
specialised engineering and construction firm based in Switzerland, as its
sole EPC contractor for Villeta. As one of the world's most experienced
licensors of ammonia technologies in the market, Casale will leverage its
suite of cutting-edge technologies in fertiliser production and over 100 years
of history in sustainable ammonia and nitrates to deliver ATOME's
world-leading innovative facility.

 

Villeta is an important project for Casale, representing the world's largest
dedicated green fertiliser facility upon commencement of operations. Drawing
on the expertise and in country knowledge of ATOME's own team, Casale will
employ specialist sub-contractors with experience in Paraguay and South
America to support development of the facility.

 

Further information about Casale please visit: https://casale.ch/
(https://casale.ch/)

 

Appointment of Head of Engineering and Project Management

 

In conjunction with the nomination of EPC contractor and to strengthen the
management's core engineering expertise, the Company is pleased to announce
that it has appointed Sam Mackilligan BEng MBA to the non-board position of
Head of Engineering and Project Management at ATOME with immediate effect.

 

Sam has over 35 years of experience directing and delivering large-scale and
first of a kind infrastructure and energy projects. Prior to joining ATOME,
Sam was the Director of Hydrogen for Europe at AECOM, ATOME's current Owner's
Engineer, a Fortune 500 engineering consultancy, and acted as project director
for several major energy transition projects for clients such as Air Products
and BP. Sam was ATOME's relationship lead at AECOM.

 

Project Finance Update

 

Project finance for the Villeta Project continues to make good progress for
what is expected to be a world-first project of its kind, with care being
taken especially as the Company is determined that the eventual structure
delivers material upside for shareholders. In this regard, the Company
continues to have positive discussions with equity and debt providers for
inclusion in the second round of the negotiations which will lead to the final
selection of funding partners and completion of the project financing.

 

The Company is pleased to report that indicative project debt costs have come
in below original expectations due to the project's best-in-class development
approach, strong partnerships, and climate impact. This stands ATOME in good
stead in its continuing discussions with the equity providers. The Company
anticipates that a further announcement on this will be provided during the
course of the next month.

 

Unlike many other green oriented projects, the Project's laser focus on
low-cost delivery of an innovative product into existing demand centres places
Villeta at the forefront of the energy transition's leading projects.

 

Olivier Mussat, CEO of ATOME, commented:

 

"The positive feedback during our project finance discussions and favourable
project debt costs further validate the strength of our commercial proposition
for our green fertiliser offering.

 

"Nomination of our EPC contractor is one of the final key milestones for our
Villeta Project. With over a century of global experience in the sector,
Casale demonstrated its expertise, innovation and commitment to sustainability
and will be an important strategic partner to realise our flagship project.

 

"Developing  innovative solutions to decarbonise hard-to-abate industries can
be a complex and lengthy process. However, as ATOME works to deliver for its
shareholders by concentrating on a product for which there is existing demand,
reaching important milestones like this are important to delivering on our
stated targets.

 

"We are also pleased to welcome Sam into his capacity as our Head of
Engineering and Project Management as we progress to the next stages of the
project engineering."

 

Federico Zardi, Casale CEO, commented:

 

"Being appointed as the EPC contractor for the Villeta project is a
significant milestone for Casale. With over a century of expertise and an
unwavering commitment to safety, quality, and excellence, we don't just dream
of a greener planet; together with ATOME, we are shaping it.

 

"This nomination underscores Casale's position as a trusted partner, capable
of delivering turnkey solutions by combining our cutting-edge technologies
with comprehensive EPC capabilities.

 

"As the first project of its kind, Villeta will not only set a new standard in
green fertilizer production but also support sustainable development in Latin
America, creating local opportunities and fostering a resilient, low-carbon
economy. By working closely with ATOME and our local teams, we are proud to
contribute to sustainable local growth that addresses today's needs and
promotes a shift towards a greener future."

 

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
 SP Angel (Broker)                        +44 (0) 20 3490 0470
 Richard Hail, Caroline Rowe
 FTI Consulting (Communications Adviser)  +44 (0) 20 3727 1000

                                        atome@fticonsulting.com
 Elizabeth Adams, Ben Brewerton

 

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
a 445-megawatt of project in Paraguay and a further pipeline of potential
projects in Central America.

 

The first project is at Villeta in Paraguay. Villeta benefits from a 145MW
renewable power purchase agreement and 30 hectares of land in a tax free zone.
Front End Engineering Design studies have been completed and Heads of Terms
signed with Yara, the leading international fertiliser company for offtake of
all of Villeta's production. 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 sustainability-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.

 

About CASALE

 

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 fertilizer industries. With more than 450
professionals across Switzerland, the Czech Republic, China, India, the United
States, and Brazil, Casale is a global leader in sustainable fertilizer
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 fertilizer 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.

 

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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