REG - ATOME PLC - Creation of ATOME POWER

AtomeAnnouncement

20/05/2025 07:00

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RNS Number : 2953J  ATOME PLC  20 May 2025

 

 

For immediate release

20 May 2025

 

ATOME PLC

("ATOME" or the "Company")

 

Creation of ATOME POWER

 

New renewable power generation and infrastructure business

 

New potential income stream with tangible growth prospects

 

Villeta Update

 

ATOME (AIM: ATOM), the leading developer of international green fertiliser
projects is pleased to announce the establishment of ATOME POWER, a new
renewable power generation and infrastructure division which is intended to be
developed as a separate but complementary business within the ATOME Group, and
provides a business update on its Villeta Project in Paraguay ("Villeta" or
"Project").

 

Highlights

 

·      ATOME POWER, a new standalone, market-led renewable power and
infrastructure division with initial focus to deliver power as a service in
Latin America

 

·      Objective to provide ATOME Group with the potential for a stable,
significant and independent income stream with tangible growth prospects
targeted to commence in the relative near term

 

·      First project under consideration is an up to 400MW capacity,
utility scale solar plant with battery storage infrastructure located near
ATOME's green fertiliser facility in Villeta, Paraguay ("Villeta")

 

·      Option to acquire 685 hectares (1,680 acres) of land with
feasibility study underway

 

·      Objective to provide long-term power solutions for potential
third-party users as a step towards ATOME POWER becoming a significant
independent power supplier in Paraguay

 

·      Anticipated to be funded separately from internal resources
and/or at project level

 

·      Progress at Villeta with signing of definitive offtake agreement
and formation of equity club expected at or around end June

 

Relating to this update, Olivier Mussat, CEO of ATOME, and Nikita Levine,
Director of Business Development, will be presenting at the AJ Bell Shares
Spotlight investor evening event in London today (20(th) May) from 6.00pm,
details of which can be found below.

 

ATOME is establishing a market-led, large-scale renewable power generation and
infrastructure business with initial focus on Latin America. ATOME POWER is
intended to serve as a standalone business leveraging the Group's regional
exposure and management expertise. Through ATOME's  proven business-model,
experience and strategic partnerships with technology suppliers and financial
institutions, ATOME Power plans to provide long-term energy solutions to
third-party users.

 

The first project is planned to be situated close to ATOME's green fertiliser
project in Villeta, Paraguay which has its own 145MW supply of baseload 24/7
renewable electricity from the grid. The site is located within 400 metres of
the Buey Rodeo substation, with fibre-optic connections already in place, and
access to plentiful water supply from the adjacent Paraguay River.

 

ATOME POWER is intended to be an 80:20 joint venture between ATOME and Fondo
de Inversion en Innovacion de Paraguay S.A. ("FIIP"), respectively, further
details of which are set out below.

 

Power Generation

 

ATOME POWER plans to develop a utility-scale solar plant of up to 400MW
installed capacity incrementally, alongside battery storage. The completion of
the renewable power project will be a first step in placing ATOME as a
significant independent power producer in Paraguay. As a precursor, ATOME
POWER has optioned a sizeable plot of 685 hectares (1,680 acres) near Buey
Rodeo and has commenced discussions with certain key stakeholders.

 

By comparison, the UK's largest currently planned solar project at Cleve Hill,
Kent has a capacity of 375MW on an area of 360 hectares (900 acres). Based on
preliminary independent reports, the estimated average solar irradiation of
the area in ATOME's proposed site is 4.85kwh/m2 per day (compared with the
average for the South of England of 3.5kwh/m2).

 

Paraguay, despite currently having adbundant hydroelectric generation from its
world-scale Itaipu Bi-National facility, is beginning the process of
diversifying its renewable power due to increasing power demand from existing
and emerging sectors, including IT and data. As such, despite its favourable
irradiation levels, solar power generation is in its infancy in Paraguay and
the need to diversify its energy supply is recognised at a Government level.

 

ATOME POWER's initial project at Buoy Rodeo will help stimulate sustainable
multi-sector growth in Paraguay whilst potentially providing a near term
diversified, significant and independent income stream for the ATOME Group.

 

The Business Case

 

Advancements over the past decade have extended the operational life of solar
panels to over 25 years, while battery storage providers now offer comparable
long-term warranties at increasingly cost-competitive rates. The Board
believes this enables ATOME POWER to develop attractive, high-value projects
that should draw top-tier offtakers.

 

 ATOME POWER intends to offer "power as a service" facilitating long-term
contracts. These agreements provide the stability required for large power
consumers, such as AI operations, to secure reliable, high-volume offtake
agreements for consistent energy supply.

 

ATOME POWER will target potential long-term third-party income streams,
subject to appropriate regulatory permissions and consents, from various
services, including the:

 

i.     provision outside of the grid of direct power and infrastructure
for third-party service providers within the wider Villeta industrial cluster;

ii.    provision of power solutions through the grid network, subject to
new legislation, to major end users in Paraguay;

iii.   ability to supply ATOME's own future business or its partners;

iv.   potential to sell power to the grid network during peak times; and

v.    future potential to cooperate with ANDE, the national power provider.

 

Paraguay is a particularly suitable location for new technology businesses
given its significant fiscal attractiveness of 10% corporate tax, freedom of
movement, ability for profit repatriation, stable investment grade democracy
and equal opportunities for foreign investment, being a member of the
important Mercosur trading bloc and having a young workforce.

 

Next Steps

 

ATOME is already in discussions with potential EPC contractors and within the
next months will perform technical and commercial due diligence and necessary
feasibility studies before approving the next steps. Initial discussions with
technical advisers have commenced, at least one of which has commonality with
the Villeta Project.

 

It is anticipated that these early stage studies and preparations will be
funded through internal resources and/or external parties at a project level
without any equity funding at Group.

 

Following completion of the necessary steps, the project development will be
encapsulated within a special purpose vehicle which will be funded on an
independent project finance level so as to provide attractive income and
capital returns to ATOME's shareholders. The Company may consider a spin out
of ATOME POWER in the future to promote private equity funding.

 

ATOME intends to recruit separate management with local as well as
international experience for the new business leveraging its local and
institutional project finance contacts and experience gained through the
Villeta Project.

 

The Company has an understanding with its proposed project partner, FIIP, who
originated this non-core opportunity, as to co-operation on the project with
costs funded pro rata to their respective shareholding. As FIIP is a Levine
family company in which Peter Levine, the Chair of ATOME, although not
beneficially interested therein, is an advisor, any formal arrangements or
agreements between FIIP and the Company will be a related party transaction
pursuant to the AIM Rules and will be dealt with at such time as applicable
under AIM Rule 13.

 

Villeta Update

 

Since the last update issued on 7 April 2025, steady progress continues to be
made towards Final Investment Decision ("FID") on the Villeta 145MW green
fertiliser project and full financial close:

 

i.    After the signing of the Engineering, Procurement and Construction
("EPC") contract, Casale and the Company are working closely, together with
suppliers of long lead items, with off site engineering work continuing in
order to ensure construction timelines are met;

 

ii.    The definitive offtake contract with the leading international
fertiliser company, Yara International, is in the final stages of discussion
with signing now targeted by the end of June;

 

iii.   In depth positive discussions are taking place between the Company,
Hy24, Villeta's anchor equity investor, and a select number of co-investors to
form the equity club component of the financing;

 

iv.   In April, a positive and constructive site visit to Paraguay took
place with a total of some 35 people in the delegation comprising
representatives from five of the multi-lateral funding institutions as well as
equity providers. Meetings took place with representatives of Government, ANDE
(the national power supplier), the communities, as well as key project
partners including Casale. The visits generated very positive results amongst
all those who attended and was a key item in the necessary due diligence
process for the project finance; and

 

v.   As a result of ATOME's clear industry leadership in green fertliser,
the Company has seen a step up in the number of projects being presented to
ATOME to consider. This is reflective of ATOME's reputation and is of note
when ATOME considers its growing pipeline of potential projects, supplemented
by the exciting new power division and its prospects.

 

The nature of project finance means that logistics and timing are of the
essence and whilst target for FID remains first part of mid-summer, taking
into account the wide-spread of holidays in the various continents and the
numbers of parties involved, an end September close would be a more prudent
target.

 

The overarching element is that ATOME's Board confidence is high for a closing
and start of construction soon with a significant step up in developments.

 

The Company is pleased to remind shareholders that the latest investor
presentation dated May 2025, which includes the new power division, can be
found on the Company's website at www.atomeplc.com (http://www.atomeplc.com) .

 

Olivier Mussat, CEO, commented:

 

"We believe ATOME POWER represents an excellent potential value-added income
opportunity for our shareholders. ATOME POWER will seek to deliver substantial
near-term, diversified revenue and capital growth without diverting critical
resources from our core operations."

 

"Our new power business plans to capitalise on ATOME's established
relationships to enable accelerated project deployment and unlock expansion
opportunities within Paraguay and across the region."

 

"In the meantime, we continue to make substantial progress alongside our
world-class partners at Villeta and we look forward to providing shareholders
with further updates between now and FID expected later this year."

 

Shareholders should note that the development of ATOME POWER is still at early
formative stage with no commitment of funding from ATOME and there is no
assurance therefore at this time that the project will ultimately proceed
after completion of the technical and commercial due diligence and necessary
feasibility studies, or develop as planned in the timescales and manner
envisaged.

 

Investor Presentation

 

ATOME is pleased to announce that the Company will be presenting at the Shares
Spotlight investor evening event in London today (20(th) May) from 6.00pm,
sponsored by AJ Bell.

 

The event is open to all existing and potential shareholders. The Shares
Spotlight Event will feature a presentation from ATOME about the Company,
followed by a live Q&A with senior management over complimentary drinks.

 

Shareholders and potential investors can register to join at The Novotel
Hotel, Pepys Street, London, EC3N 2NR for free at:

https://www.sharesmagazine.co.uk/events/event/shares-spotlight-event-200525
(https://www.sharesmagazine.co.uk/events/event/shares-spotlight-event-200525)

 

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.

 

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 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. 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 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.

 

 

Forward Looking Statements

The proposed new power generation and infrastructure business is at an early
stage of initial development and 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, 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.

 

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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