Yara and ATOME PLC Sign Heads of Terms for Long-Term Offtake Agreement for Renewable Fertilizer Project in Paraguay

Yara and ATOME PLC Sign Heads of Terms for Long-Term Offtake Agreement for Renewable Fertilizer Project in Paraguay

(IN BRIEF) Yara and ATOME PLC have signed a Heads of Terms agreement for the long-term supply of Calcium Ammonium Nitrate from ATOME’s renewable fertilizer production facility in Villeta, Paraguay. This partnership will help decarbonize the fertilizer sector and support Yara’s Climate Choice portfolio. The Villeta project is set to produce up to 264,000 tons of fertilizer annually from 2027, utilizing renewable energy to significantly reduce emissions.

(PRESS RELEASE) OSLO, 24-Jul-2024 — /EuropaWire/ — Yara, a global leader in crop nutrition, and ATOME PLC, a prominent developer of international green fertilizer projects, have signed a Heads of Terms agreement for the long-term supply of Calcium Ammonium Nitrate (CAN) from ATOME’s renewable production facility in Villeta, Paraguay.

Strategic Partnership for Renewable Fertilizer

Under the agreement, Yara will market and sell the fertilizer produced at ATOME’s Villeta facility as part of the YaraBela product line. The 145 MW fertilizer project, which is set to commence production in 2027, will utilize baseload renewable power to produce up to 264,000 tons of Calcium Ammonium Nitrate annually, significantly reducing emissions in the sector.

Progress and Future Plans

The Front-End Engineering and Design (FEED) study for the project was completed in the first half of 2024, and ATOME PLC aims to reach the Final Investment Decision (FID) later this year. This strategic partnership marks a significant milestone for ATOME as it moves towards realizing its flagship Villeta Project, which will become one of the largest renewable fertilizer production facilities in the Western Hemisphere.

Olivier Mussat, CEO of ATOME, stated, “The entry into this strategic relationship with global crop nutrition leader Yara is a significant milestone for ATOME on the path to realize our flagship Villeta Project. Proving significant off-taker interest for our renewable product gives a clear path to the finalization of funding, FID, and the commencement of work onsite at Villeta.”

Expansion and Future Projects

This agreement also paves the way for ATOME to accelerate the development of its project pipeline, including the 300MW Yguazu project in Paraguay and the 120MW Costa Rica projects. Mussat added, “We are grateful for the work and the trust of the team at Yara, and we look forward to a long and mutually beneficial relationship.”

Yara’s Commitment to Decarbonization

Chrystel Monthean, EVP Americas at Yara, emphasized the importance of this collaboration in Yara’s decarbonization strategy. “Decarbonizing the food systems is at the forefront of our strategy. Many food companies in South America have committed to decarbonization targets. Our collaboration with them reveals that decarbonizing fertilizer production combined with agronomical best practices can significantly reduce crops’ carbon footprint.”

Monthean further noted, “Signing the Heads of Terms for the Villeta project is a first step to expanding our portfolio with fertilizers produced with renewable energy in the Americas. The fertilizers from Villeta will become part of a new portfolio called Yara Climate Choice, including fertilizers based upon renewable energy and carbon capture and storage. The project’s inland location could open logistical advantages for some of our growing markets in Mercosur. We are looking forward to developing a strategic long-term relationship with ATOME.”

About Yara International

Yara’s mission is to responsibly feed the world and protect the planet. We pursue a strategy of sustainable value growth through reducing emissions from crop nutrition production and developing low-emission energy solutions. Yara’s ambition is focused on growing a nature-positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.

To drive the green transition in fertilizer production, shipping, and other energy-intensive industries, Yara will produce ammonia with significantly lower emissions. We provide digital tools for precision farming and work closely with partners at all levels of the food value chain to share knowledge and promote more efficient and sustainable solutions.

Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. With 18,000 employees and operations in more than 60 countries, sustainability is an integral part of our business model. In 2023, Yara reported revenues of USD 15.5 billion.

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.

The first project is at Villeta in Paraguay. It 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. The Company is now negotiating the project finance with a view to closing that and declaring FID before end 2024. 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.

Media Contact:

ATOME PLC:
Nikita Levine
Investor Relations
+44 (0) 113 337 2210
info@atomeplc.com

Yara International:
Press Officer On duty:
+47 400 04 170
press@yara.com

SOURCE: Yara International ASA