TIDMATOM
RNS Number : 0127M
ATOME Energy PLC
09 January 2023
9 January 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
ATOME Paraguay Update
Locally Funded Land acquisition completed
FEED and FID on track
ATOME Energy (AIM: ATOM), the only pure international green
hydrogen and ammonia production company on the London Stock
Exchange with current large scale projects in Europe and South
America as well as hydrogen mobility projects announces further
progress for its subsidiary, ATOME Paraguay.
Highlights
-- The purchase of the 30 hectare site for the Villeta project now completed
-- Purchase funded with market competitive commercial mortgage from a leading Paraguay bank
-- Front End Engineering Design ("FEED") study progressing with AECOM, ATOME's project manager
-- Final Investment Decision ("FID") on track for Q2 2023: Natixis CIB has issued teaser for project funding of the
Villeta facility with significant interest already shown
-- As a step towards FID, global energy and chemicals advisory company NexantECA has been appointed as market
consultant
Land acquisition completed
Following the announcement made by ATOME on 5 September 2022
regarding the procurement of the 30 hectares (75 acres) of land for
the Company's Villeta green hydrogen and ammonia project facility,
ATOME is pleased to announce that it has completed the acquisition
of the land for US$900,000 (Nine Hundred Thousand US dollars).
Sudameris Bank, a leading Paraguay bank, has provided a market
competitive commercial mortgage to fund the acquisition with
payment terms tailored to project flows. This is ATOME's first
borrowing facility which further demonstrates the rapid progress of
the Villeta project and reflects the credibility of ATOME in
Paraguay as well as showing the commitment of Sudameris to promote
clean energy in Paraguay's transition to a greener economy.
Villeta project FEED and FID process update
Further to ATOME's announcement made on 1 December 2022
regarding entering into the FEED contract, the related study work
led by international contractors Urbas and Casale underway with
AECOM, the international engineering consultancy acting as ATOME's
Owners Engineer, project managing the process for the Company.
With a fast track schedule, FID remains projected to take place
during Q2 2023. As part of the necessary prelude to this, in
December Natixis CIB, ATOME's international financial advisor, sent
out a teaser on the world scale green hydrogen and ammonia Villeta
project to substantial infrastructure and green funds,
multi-laterals, industry players and relevant institutions.
On the back of the teaser, significant amount of interest has
already been shown in Villeta including the important feature of
utilising baseload 24/7 existing power to enabling ATOME to
expeditiously progress to full production of 100,000 tonnes of
green ammonia in 2025.
ATOME, which is fully funded to FID of the Villeta project, is
therefore optimistic that it will be able to successfully fund the
120MW facility within the specific purpose Villeta project vehicle
without the need of direct funding into the vehicle by ATOME. This
will crystalise and unlock the significant value built up by ATOME
in the Villeta project and minimise dilution in the public parent
company allowing ATOME as a group to focus on other strategic
opportunities in green hydrogen and ammonia production which are
now actively being pursued.
Market consultant appointed
Another necessary step towards FID has also been taken by ATOME,
with the appointment of NexantECA to provide an independent market
view of global grey and green ammonia market. NexantECA is a leader
in the provision of market dynamics and pricing data in both
established and emerging energy transition markets such as green
ammonia. Its data is used by energy, refining, and chemical
industries and financiers. As well as being required by potential
funders of Villeta, the study will provide key data for ATOME's
ammonia marketing strategy as it seeks to maximize the value for
the production from Villeta.
Olivier Mussat, CEO of ATOME, commented:
"With the land aquisition now completed following the support of
Sudameris Bank and the appointment of NexantECA to conduct a market
study, ATOME continues to deliver on its milestones to FID. The
Company looks forward to working with Sudameris Bank in the future
on Paraguayan green energy projects and is appreciative of the
Bank's foresight in supporting the drive towards a green economy in
the country. We are also advancing on the project funding process
and seeing significant amount of interest from international
financial sources on funding the green hydrogen and ammonia Villeta
project led by our Financial Adviser Natixis CIB, one of the world
leaders in hydrogen and energy infrastructure funding."
Conor McEnroy, Chairman of Sudameris Bank commented:
"We are pleased to back this UK foreign direct investment
project for green energy and green fertilizer in Paraguay.
Paraguay is a leader in green energy in the Americas with 100%
of electricity generated from renewables. The installation of
Atome's large-scale green hydrogen and ammonia plant benefitting
from the country's baseload green hydro-power is perfectly aligned
with Paraguay's declared sustainable policies for industry,
transportation and farming, together with its objective to be at
the forefront of decarbonisation in South America."
Mais Haddadin, Global Sustainbility Lead of NexantECA
commented:
"It is our pleasure to support ATOME on their journey by
providing a clear and independent outlook of how this market will
likely evolve. Green ammonia will play a key role in the
decarbonisation pathway of numerous industries assisting in meeting
the climate neutrality commitments. NexantECA is committed to
supporting ATOME and the industry transition towards carbon
neutrality and more sustainable pathways with lower GHG emissions,
clean energy and the circular economy."
For more information, please visit https://www.atomeplc.com or
contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations info@atomeplc.com
Beaumont Cornish (Nominated Adviser)
Roland Cornish, Michael Cornish +44 (0) 20 7628 3396
Liberum (Joint Broker)
Cameron Duncan, Kate Bannatyne +44 (0) 20 3100 2000
SP Angel (Joint Broker)
Richard Hail, Caroline Rowe +44 (0) 20 3490 0470
finnCap (Joint Broker)
Christopher Raggett, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, atome@tavistock.co.uk
Charles Baister
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.. 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 over 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 in 2025.
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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