FEED contract for Engineering work in Paraguay

RNS Number : 9824T

ATOME Energy PLC

28 July 2022

 

For immediate release

28 July 2022

ATOME ENERGY PLC

("ATOME", the "Company", or the "Group")

FEED contract for Electrical Engineering work in Paraguay

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 and mobility projects, announces another step on the road to delivering its 400MW green hydrogen and ammonia projects in Paraguay.

FEED contract for the Villeta substation

ATOME is pleased to announce that it has entered into its first FEED (Front End Engineering Design) contract in relation to its first phase 60MW Villeta project facility. The FEED is in relation to the Civil and Electromechanical works for the adaptation of the ANDE substation and will define the design and technical package which will be used as a basis of procurement and detailed engineering by the chosen Engineering Procurement Construction ("EPC") contractor. ANDE is the state owned national electricity company.

The FEED contract has been signed with Concret-Mix, a local Paraguayan company with extensive experience in this type of engineering work, including the construction of the Villeta substation operated by ANDE. AECOM, the international engineering consultancy retained by ATOME for the Villeta project, advised on the contract. The contract includes soil studies, topography and selection of electrical/electromechanical equipment with cost estimation and timetable for work.

This workstream is expected to be delivered by the end of September 2022, after which ATOME will move to procurement and nomination of the EPC contractor in order to prepare the site to receive power.

This process is in addition to the full facility FEED study for which AECOM has sent requests for Expressions of Interest and Information to selected contractors on 22 July 2022, on ATOME's behalf. To date, the response to such requests from leading FEED and EPC contractors has been very encouraging and demonstrates the high amount of interest shown in ATOME's advanced projects.

Olivier Mussat, CEO, commented:

"The entry into the FEED contract is the next step in what will in due course culminate in an aggregate of 400MW of green hydrogen and ammonia production in Paraguay, the first phase of which at Villeta is expected to commence production by Q1 2025."

"The progress underlines ATOME's commitment to be at the forefront of our industry in turning plans into reality, seizing the commercial initiative and recognising the increasingly urgent need to supply fertlisers and energy, as well as decarbonise and move towards net zero emissions."

"We are, as well as other local partners and stakeholders, particularly pleased to ensure local content and jobs in our project and look forward to a long and mutually beneficial relationship with Concret-Mix who we are also working with us in our Mobility Division."

For more information, please visit https://www.atomeplc.com or contact:

ATOME Energy PLC Nikita Levine, Investor Relations	[phone] [e-mail]
Beaumont Cornish (Nominated Adviser) Roland Cornish, Michael Cornish	[phone]
Liberum (Joint Broker) Cameron Duncan, Kane Collings	[phone]
SP Angel (Joint Broker) Richard Hail, Caroline Rowe	[phone]
finnCap (Joint Broker) Christopher Raggett, Tim Harper	[phone]
Tavistock (Financial PR and IR) Simon Hudson, Rebecca Hislaire, Charles Baister	[phone] [e-mail]

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.

Notes to Editors

ATOME

ATOME Energy PLC is an AIM listed company targeting green hydrogen and ammonia production with over 400-megawatt of projects in Paraguay and a potential of up to 100MW in 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 60MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.

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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