TIDMATOM
RNS Number : 9019Z
ATOME Energy PLC
17 January 2024
17 January 2024
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Update on Paraguay Operations
Excellent progress on multiple workstreams coming to a head in
Q1 2024
ATOME Energy (AIM: ATOM), the only international green
fertiliser project development company on the London Stock
Exchange, provides an update on its Paraguay operations.
Summary:
-- Front-End Engineering Design ("FEED") study and Engineering,
Procurement and Construction ("EPC") progressing well and to be
concluded in this Q1
-- Multiple offtake proposals received from leading
international players with Company in advanced negotiations for
offtake of Villeta's full production volume of its green fertiliser
with concrete news expected this Q1
-- Company confident in finalising the Villeta Project financing
with interest in the debt financing component extending to over 2x
oversubscribed and interest from international heavyweight
investors in the equity component all at project level
-- Pre-PPA studies in respect of the 300MW Yguazu Project to be
completed this month to confirm best location for the project with
the 300MW PPA targeted for this H1
145MW Villeta Phase 1, Paraguay
Detailed FEED, EPC, and financing negotiations for this first of
a kind project are now in their final stages as management continue
to push to achieve the best possible expedient outcome for ATOME
shareholders. The Company is pleased to report solid progress
continuing across key development workstreams.
FEED and EPC in final stages
The FEED study for the Villeta Project will be completed this
Q1.
EPC contract discussions with the main and specialist
sub-contractors, led by AECOM, the international engineering
consultancy and ATOME's Owner's Engineer, will conclude in the
coming weeks. Discussions have been focussed on delivering a lump
sum fixed price turnkey contract in order to provide certainty on
costs and delivery timelines with AECOM contributing value
engineering. This contractual structure being negotiated will
create alignment between ATOME and its EPC contractor which has the
responsibility for delivering the plant in working order, on the
agreed timeline and budget, thereby lowering project risk and
increasing its bankability, all of which significantly contributes
to maximising project returns.
Offtake of CAN from Villeta
The Company is in advanced negotiations with leading
international players for the offtake of the full production of
green Calcium Ammonium Nitrate ("CAN") fertiliser from Villeta.
ATOME has now received multiple proposals from prospective
offtakers and management is actively considering a number of
proposals which satisfy the financial and strategic objectives set
out by the Board.
It has become clear to the Board that there is a significant and
growing market for CAN on the doorstep of Paraguay, in Brazil and
Argentina, particularly with the latter market becoming
significantly more open due to the change in government there.
Furthermore, ATOME's offering is particularly attractive to
European and UK markets where increasing emphasis is made
throughout the vertical supply chain for green fertiliser and
carbon tax penalties are now in place and will grow increasingly in
the next few years.
An agreement on offtake of ATOME's CAN is expected to be
announced before the end of Q1. Further details of the offtake
arrangements will be disclosed when terms with an offtaker are
settled.
Project financing gains momentum
The Company's financial advisor, Natixis Corporate &
Investment Banking, has received multiple formal expressions of
interest from Development Finance Institutions, international
lenders and export credit agencies leading to an indicative
oversubscription in respect of the debt financing component of the
project of some 2x. As such, the Board is confident that the debt
element of the financing can be achieved on terms acceptable and as
envisaged by the Company and we expect to mandate the lead
arrangers in Q1.
Discussions are ongoing with prospective international equity
and strategic investors at the project level who are continuing to
show ongoing interest in financing Villeta due to the project's
robust economic case and strategic importance given that it is
expected to be the world's first industrial scale green
ammonia-to-fertiliser facility and capable of exporting its product
economically worldwide.
300MW "Yguazu Project"
Following entry into a pre-PPA with ANDE, the state power
company of Paraguay, both parties continue to cooperate on
mechanical engineering and feasibility studies to establish the
best location for the Yguazu Project.
Yguazu will benefit from the blueprint created by the Villeta
project development for green fertiliser production both in terms
of timescale and costs. A further update on Yguazu along with an
expected roadmap toward a 300MW PPA will be made in this Q1 with a
formal 300MW PPA targeted to be entered into within H1.
Olivier Mussat, ATOME's CEO, commented: "The Board is confident
that 2024 will be a transformational year for ATOME and we are
grateful to the team and our strategic partners who have continued
to work throughout the end of the year in order to make rapid
progress on the engineering, financial and commercial fronts.
"Whilst taking slightly longer than we originally hoped, the
work and de-risking during this extended time has allowed for
significant benefit in enhancing the efficacy of our first 145MW
project in Paraguay as well as enabling beneficial impact on
design, offtake, and financing. We are confident that in this Q1,
further key project milestones will be achieved, and we look
forward to taking FID on the Villeta project once these workstreams
are completed.
"At the same time, work is continuing in parallel on other
projects and in particular Costa Rica which, combined with Yguazu
in Paraguay, provides a pipeline of projects extending to
world-scale in excess of half a gigawatt."
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)
Scott Mathieson, Kane Collings +44 (0) 20 3100 2000
SP Angel (Joint Broker)
Richard Hail, Harry Davies-Ball +44 (0) 20 3490 0470
Cavendish Capital Markets Limited
(Broker)
Simon Hicks, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Charles Baister, Saskia atome@tavistock.co.uk
Sizen
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.
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 Energy 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 and
Iceland.
Since its admission to AIM in December 2021 ATOME signed a 145MW
power purchase agreement with ANDE, the state energy company in
Paraguay for acquired 30 hectares of land in Villeta, Paraguay for
that facility, mandated Natixis Corporate & Investment Banking
and the multilateral IDB Invest to lead the project funding and
with Front End Engineering and Design studies currently underway
with the international companies Urbas and Casale. ANDE has also
allocated a further 300MW for ATOME's second project subject to
studies.
In Costa Rica, ATOME has a green fertiliser joint venture with
Cavendish, the renewable energy arm of the substantial and
well-established Purdy Group based in Costa Rica and formed The
National Ammonia Corporation S.A. 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.
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 produce
green ammonia at an industrial scale using electricity generated
from existing geothermal sources in Iceland and hydroelectric power
in Paraguay and Costa Rica. 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, and since May 2023, Baker Hughes, a global
energy technology company operating in the energy and industry
sectors.
-ends-
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