Creation of ATOME POWER
For immediate release
20 May 2025
ATOME PLC
("ATOME" or the "Company")
Creation of ATOME POWER
New renewable power generation and infrastructure business
New potential income stream with tangible growth prospects
Villeta Update
ATOME (AIM: ATOM), the leading developer of international green fertiliser projects is pleased to announce the establishment of ATOME POWER, a new renewable power generation and infrastructure division which is intended to be developed as a separate but complementary business within the ATOME Group, and provides a business update on its Villeta Project in Paraguay ("Villeta" or "Project").
Highlights
· ATOME POWER, a new standalone, market-led renewable power and infrastructure division with initial focus to deliver power as a service in Latin America
· Objective to provide ATOME Group with the potential for a stable, significant and independent income stream with tangible growth prospects targeted to commence in the relative near term
· First project under consideration is an up to 400MW capacity, utility scale solar plant with battery storage infrastructure located near ATOME's green fertiliser facility in Villeta, Paraguay ("Villeta")
· Option to acquire 685 hectares (1,680 acres) of land with feasibility study underway
· Objective to provide long-term power solutions for potential third-party users as a step towards ATOME POWER becoming a significant independent power supplier in Paraguay
· Anticipated to be funded separately from internal resources and/or at project level
· Progress at Villeta with signing of definitive offtake agreement and formation of equity club expected at or around end June
Relating to this update, Olivier Mussat, CEO of ATOME, and Nikita Levine, Director of Business Development, will be presenting at the AJ Bell Shares Spotlight investor evening event in London today (20th May) from 6.00pm, details of which can be found below.
ATOME is establishing a market-led, large-scale renewable power generation and infrastructure business with initial focus on Latin America. ATOME POWER is intended to serve as a standalone business leveraging the Group's regional exposure and management expertise. Through ATOME's proven business-model, experience and strategic partnerships with technology suppliers and financial institutions, ATOME Power plans to provide long-term energy solutions to third-party users.
The first project is planned to be situated close to ATOME's green fertiliser project in Villeta, Paraguay which has its own 145MW supply of baseload 24/7 renewable electricity from the grid. The site is located within 400 metres of the Buey Rodeo substation, with fibre-optic connections already in place, and access to plentiful water supply from the adjacent Paraguay River.
ATOME POWER is intended to be an 80:20 joint venture between ATOME and Fondo de Inversion en Innovacion de Paraguay S.A. ("FIIP"), respectively, further details of which are set out below.
Power Generation
ATOME POWER plans to develop a utility-scale solar plant of up to 400MW installed capacity incrementally, alongside battery storage. The completion of the renewable power project will be a first step in placing ATOME as a significant independent power producer in Paraguay. As a precursor, ATOME POWER has optioned a sizeable plot of 685 hectares (1,680 acres) near Buey Rodeo and has commenced discussions with certain key stakeholders.
By comparison, the UK's largest currently planned solar project at Cleve Hill, Kent has a capacity of 375MW on an area of 360 hectares (900 acres). Based on preliminary independent reports, the estimated average solar irradiation of the area in ATOME's proposed site is 4.85kwh/m2 per day (compared with the average for the South of England of 3.5kwh/m2).
Paraguay, despite currently having adbundant hydroelectric generation from its world-scale Itaipu Bi-National facility, is beginning the process of diversifying its renewable power due to increasing power demand from existing and emerging sectors, including IT and data. As such, despite its favourable irradiation levels, solar power generation is in its infancy in Paraguay and the need to diversify its energy supply is recognised at a Government level.
ATOME POWER's initial project at Buoy Rodeo will help stimulate sustainable multi-sector growth in Paraguay whilst potentially providing a near term diversified, significant and independent income stream for the ATOME Group.
The Business Case
Advancements over the past decade have extended the operational life of solar panels to over 25 years, while battery storage providers now offer comparable long-term warranties at increasingly cost-competitive rates. The Board believes this enables ATOME POWER to develop attractive, high-value projects that should draw top-tier offtakers.
ATOME POWER intends to offer "power as a service" facilitating long-term contracts. These agreements provide the stability required for large power consumers, such as AI operations, to secure reliable, high-volume offtake agreements for consistent energy supply.
ATOME POWER will target potential long-term third-party income streams, subject to appropriate regulatory permissions and consents, from various services, including the:
i. provision outside of the grid of direct power and infrastructure for third-party service providers within the wider Villeta industrial cluster;
ii. provision of power solutions through the grid network, subject to new legislation, to major end users in Paraguay;
iii. ability to supply ATOME's own future business or its partners;
iv. potential to sell power to the grid network during peak times; and
v. future potential to cooperate with ANDE, the national power provider.
Paraguay is a particularly suitable location for new technology businesses given its significant fiscal attractiveness of 10% corporate tax, freedom of movement, ability for profit repatriation, stable investment grade democracy and equal opportunities for foreign investment, being a member of the important Mercosur trading bloc and having a young workforce.
Next Steps
ATOME is already in discussions with potential EPC contractors and within the next months will perform technical and commercial due diligence and necessary feasibility studies before approving the next steps. Initial discussions with technical advisers have commenced, at least one of which has commonality with the Villeta Project.
It is anticipated that these early stage studies and preparations will be funded through internal resources and/or external parties at a project level without any equity funding at Group.
Following completion of the necessary steps, the project development will be encapsulated within a special purpose vehicle which will be funded on an independent project finance level so as to provide attractive income and capital returns to ATOME's shareholders. The Company may consider a spin out of ATOME POWER in the future to promote private equity funding.
ATOME intends to recruit separate management with local as well as international experience for the new business leveraging its local and institutional project finance contacts and experience gained through the Villeta Project.
The Company has an understanding with its proposed project partner, FIIP, who originated this non-core opportunity, as to co-operation on the project with costs funded pro rata to their respective shareholding. As FIIP is a Levine family company in which Peter Levine, the Chair of ATOME, although not beneficially interested therein, is an advisor, any formal arrangements or agreements between FIIP and the Company will be a related party transaction pursuant to the AIM Rules and will be dealt with at such time as applicable under AIM Rule 13.
Villeta Update
Since the last update issued on 7 April 2025, steady progress continues to be made towards Final Investment Decision ("FID") on the Villeta 145MW green fertiliser project and full financial close:
i. After the signing of the Engineering, Procurement and Construction ("EPC") contract, Casale and the Company are working closely, together with suppliers of long lead items, with off site engineering work continuing in order to ensure construction timelines are met;
ii. The definitive offtake contract with the leading international fertiliser company, Yara International, is in the final stages of discussion with signing now targeted by the end of June;
iii. In depth positive discussions are taking place between the Company, Hy24, Villeta's anchor equity investor, and a select number of co-investors to form the equity club component of the financing;
iv. In April, a positive and constructive site visit to Paraguay took place with a total of some 35 people in the delegation comprising representatives from five of the multi-lateral funding institutions as well as equity providers. Meetings took place with representatives of Government, ANDE (the national power supplier), the communities, as well as key project partners including Casale. The visits generated very positive results amongst all those who attended and was a key item in the necessary due diligence process for the project finance; and
v. As a result of ATOME's clear industry leadership in green fertliser, the Company has seen a step up in the number of projects being presented to ATOME to consider. This is reflective of ATOME's reputation and is of note when ATOME considers its growing pipeline of potential projects, supplemented by the exciting new power division and its prospects.
The nature of project finance means that logistics and timing are of the essence and whilst target for FID remains first part of mid-summer, taking into account the wide-spread of holidays in the various continents and the numbers of parties involved, an end September close would be a more prudent target.
The overarching element is that ATOME's Board confidence is high for a closing and start of construction soon with a significant step up in developments.
The Company is pleased to remind shareholders that the latest investor presentation dated May 2025, which includes the new power division, can be found on the Company's website at www.atomeplc.com.
Olivier Mussat, CEO, commented:
"We believe ATOME POWER represents an excellent potential value-added income opportunity for our shareholders. ATOME POWER will seek to deliver substantial near-term, diversified revenue and capital growth without diverting critical resources from our core operations."
"Our new power business plans to capitalise on ATOME's established relationships to enable accelerated project deployment and unlock expansion opportunities within Paraguay and across the region."
"In the meantime, we continue to make substantial progress alongside our world-class partners at Villeta and we look forward to providing shareholders with further updates between now and FID expected later this year."
Shareholders should note that the development of ATOME POWER is still at early formative stage with no commitment of funding from ATOME and there is no assurance therefore at this time that the project will ultimately proceed after completion of the technical and commercial due diligence and necessary feasibility studies, or develop as planned in the timescales and manner envisaged.
Investor Presentation
ATOME is pleased to announce that the Company will be presenting at the Shares Spotlight investor evening event in London today (20th May) from 6.00pm, sponsored by AJ Bell.
The event is open to all existing and potential shareholders. The Shares Spotlight Event will feature a presentation from ATOME about the Company, followed by a live Q&A with senior management over complimentary drinks.
Shareholders and potential investors can register to join at The Novotel Hotel, Pepys Street, London, EC3N 2NR for free at:
https://www.sharesmagazine.co.uk/events/event/shares-spotlight-event-200525
MAR
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.
For more information, please visit https://www.atomeplc.com or contact:
|
ATOME PLC Nikita Levine, Investor Relations |
+44 (0) 113 337 2210 |
|
Beaumont Cornish (Nominated Adviser) Roland Cornish, Michael Cornish |
+44 (0) 20 7628 3396 |
|
Stifel (Joint Broker) Jason Grossman, Ashton Clanfield |
+44 (0) 20 7710 7600 |
|
SP Angel (Joint Broker) Richard Hail, Jen Clarke |
+44 (0) 20 3490 0470 |
|
FTI Consulting (Communications Adviser) Elizabeth Adams, Ben Brewerton |
+44 (0) 20 3727 1000 |
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. ATOME is in the early stages of developing a significant green power generation and infrastructure business.
ATOME's first project in Villeta, Paraguay, benefits from a 145MW renewable power purchase agreement and 43 hectares of land in a tax-free zone. Front End Engineering Design studies have been completed and Heads of Terms signed with Yara International, the leading international fertiliser company, for offtake of all of Villeta's green fertiliser production. In early 2025, ATOME announced Hy24, the leading clean hydrogen asset manager, as anchor and lead equity investor in the project, and confirmed the signing of the US$465 million fixed-price EPC contract with leading ammonia and fertilizer engineering specialist Casale S.A. The Company is now negotiating the project finance with a view to commencing work in 2025. 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.
The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Schroders, a leading fund manager, and Baker Hughes, a global technology company operating in the energy and industry sectors.
Forward Looking Statements
The proposed new power generation and infrastructure business is at an early stage of initial development and certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.
Other information
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.
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