Completion of Front End Engineering Design study
5 June 2024
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE EU REGULATION 596/2014 AS IT FORMS PART OF THE UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR")
ATOME PLC
("ATOME", "the Company", or "the Group")
Major milestone delivered at Villeta Project
Completion of Front End Engineering Design ("FEED") study
Final Investment Decision ("FID") and start of construction targeted by end year
ATOME (AIM: ATOM), the leading international developer of green fertiliser projects, is pleased to announce the completion of the FEED study for its 145MW green fertiliser facility at Villeta, Paraguay (the "Villeta Project"). This is a major milestone, providing the foundational engineering for the Villeta Project which keeps it on track to commence construction by the end of 2024.
Highlights
· Successful completion of FEED study for the Villeta Project representing the first known announced completion of FEED for a large-scale green dedicated fertiliser project worldwide
· Marks a major milestone in the delivery of the Villeta Project with offtake and Engineering, Procurement and Construction ("EPC") negotiations now at an advanced stage
· FID and start of construction expected by end of year
Olivier Mussat, CEO, commented: "ATOME continues to follow its strategy and systematically deliver major milestones on the road to starting construction at Villeta by the end of this year.
"Completion of this complex and detailed FEED study, which we believe is the first for an industrial scale, fully-green, fertiliser facility, provides the necessary foundational engineering not only for our first Villeta Project, but for ATOME to apply elsewhere, consolidating our position as an international leader in green fertiliser production. Our immediate attention now turns to offtake and EPC, both of which will allow us to move towards the delivery of FID this year.
"We would like to thank Casale and Urbas Energy, our FEED contractors, as well as AECOM, our Owner's Engineer, for their combined efforts over the past 18 months in bringing the FEED study to completion as we now focus on the next key deliverables of offtake and EPC in order to reach production start-up in 2027."
Jennifer Obertino, Global Energy Practice Lead, of AECOM, commented: "We are pleased to confirm the completion of the Front End Engineering Design study for the 145MW green fertiliser project at Villeta, Paraguay, having worked alongside ATOME, Casale and Urbas Energy over the last 18 months.
"The Villeta Project has grown into one of the most advanced of its kind in the world. We have worked with ATOME on its unique journey in delivering zero-carbon fertiliser from 2027, bringing in our expertise in accelerating the decarbonisation of hard-to-abate sectors and partnering with clients to bring innovative solutions to the market."
Next Steps
ATOME is now progressing EPC contract discussions and anticipates that these discussions will lead to the appointment of principal EPC contractors by the end of June 2024 with the definitive contract expected to be signed at the time of FID anticipated later this year.
ATOME is highly encouraged by the status of discussions on offtake and hopes to be able to announce a successful conclusion by the end of Q2 2024. Offtake is the last significant milestone before proceeding to the final phases of the ongoing project funding process.
Completion of FEED Study
ATOME announces the successful completion of the FEED study for the 145MW Villeta Project. The completion of FEED, which includes approximately 100,000 hours of engineering and comprises some 619 individual documents and reports, represents the first announced completion of FEED for any large-scale green fertiliser facility worldwide.
The FEED study confirms the Villeta Project's design, processes, timelines and production capacity of 264,000 tonnes per year of green Calcium Ammonium Nitrate ("CAN") fertiliser which has the potential to displace up to an estimated 15 million tonnes/CO2e over the life of the project.
The completion of FEED concludes the foundational engineering for the Villeta Project ahead of EPC. The study will now serve as a blueprint for ATOME's next projects as the Company leverages on the significant expertise, learnings and know-how accumulated from this process.
The FEED study was performed by Spanish engineering firm, Urbas Energy, in cooperation with world-renowned Casale, the Swiss-based OEM and licensor for ammonia and fertiliser technologies. AECOM, the multinational Fortune-500 engineering consulting company, Owner's Engineer for ATOME, advised and signed-off on the study together with the Company.
For more information, please visit https://www.atomeplc.com or contact:
|
ATOME PLC |
+44 (0) 113 337 2210 |
|
Beaumont Cornish (Nominated Adviser) |
+44 (0) 20 7628 3396 |
|
SP Angel (Joint Broker) |
+44 (0) 20 3490 0470 |
|
Cavendish Capital Markets Limited (Broker) |
+44 (0) 20 7220 0500 |
|
Tavistock (Financial PR and IR) |
+44 (0) 20 7920 3150 |
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.
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, 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.
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 fertiliser at an industrial scale using electricity generated from 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, Schroders, a leading fund manager, and since May 2023, Baker Hughes, a global energy technology company operating in the energy and industry sectors.
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