EPC Contractor Nominated
For immediate release
14 November 2024
ATOME PLC
("ATOME" or the "Company")
EPC Contractor Nominated as Project Financing Progresses
Appointment of Head of Engineering and Project Management
ATOME (AIM: ATOM), the leading developer of international green fertiliser projects, announces its nomination for Engineering, Procurement and Construction ("EPC") contractor for its 145MW Villeta Project ("Villeta" or "the Project") in Paraguay, capable of producing approx. 260,000 tonnes per year Calcium Ammonium Nitrate, and provides an update on continued progress on project finance negotiations.
Pictured: ATOME and Casale at Casale's Lugano headquarters (credit: ATOME).
EPC Contractor
After lengthy consultations, ATOME has selected Casale S.A ("Casale"), a specialised engineering and construction firm based in Switzerland, as its sole EPC contractor for Villeta. As one of the world's most experienced licensors of ammonia technologies in the market, Casale will leverage its suite of cutting-edge technologies in fertiliser production and over 100 years of history in sustainable ammonia and nitrates to deliver ATOME's world-leading innovative facility.
Villeta is an important project for Casale, representing the world's largest dedicated green fertiliser facility upon commencement of operations. Drawing on the expertise and in country knowledge of ATOME's own team, Casale will employ specialist sub-contractors with experience in Paraguay and South America to support development of the facility.
Further information about Casale please visit: https://casale.ch/
Appointment of Head of Engineering and Project Management
In conjunction with the nomination of EPC contractor and to strengthen the management's core engineering expertise, the Company is pleased to announce that it has appointed Sam Mackilligan BEng MBA to the non-board position of Head of Engineering and Project Management at ATOME with immediate effect.
Sam has over 35 years of experience directing and delivering large-scale and first of a kind infrastructure and energy projects. Prior to joining ATOME, Sam was the Director of Hydrogen for Europe at AECOM, ATOME's current Owner's Engineer, a Fortune 500 engineering consultancy, and acted as project director for several major energy transition projects for clients such as Air Products and BP. Sam was ATOME's relationship lead at AECOM.
Project Finance Update
Project finance for the Villeta Project continues to make good progress for what is expected to be a world-first project of its kind, with care being taken especially as the Company is determined that the eventual structure delivers material upside for shareholders. In this regard, the Company continues to have positive discussions with equity and debt providers for inclusion in the second round of the negotiations which will lead to the final selection of funding partners and completion of the project financing.
The Company is pleased to report that indicative project debt costs have come in below original expectations due to the project's best-in-class development approach, strong partnerships, and climate impact. This stands ATOME in good stead in its continuing discussions with the equity providers. The Company anticipates that a further announcement on this will be provided during the course of the next month.
Unlike many other green oriented projects, the Project's laser focus on low-cost delivery of an innovative product into existing demand centres places Villeta at the forefront of the energy transition's leading projects.
Olivier Mussat, CEO of ATOME, commented:
"The positive feedback during our project finance discussions and favourable project debt costs further validate the strength of our commercial proposition for our green fertiliser offering.
"Nomination of our EPC contractor is one of the final key milestones for our Villeta Project. With over a century of global experience in the sector, Casale demonstrated its expertise, innovation and commitment to sustainability and will be an important strategic partner to realise our flagship project.
"Developing innovative solutions to decarbonise hard-to-abate industries can be a complex and lengthy process. However, as ATOME works to deliver for its shareholders by concentrating on a product for which there is existing demand, reaching important milestones like this are important to delivering on our stated targets.
"We are also pleased to welcome Sam into his capacity as our Head of Engineering and Project Management as we progress to the next stages of the project engineering."
Federico Zardi, Casale CEO, commented:
"Being appointed as the EPC contractor for the Villeta project is a significant milestone for Casale. With over a century of expertise and an unwavering commitment to safety, quality, and excellence, we don't just dream of a greener planet; together with ATOME, we are shaping it.
"This nomination underscores Casale's position as a trusted partner, capable of delivering turnkey solutions by combining our cutting-edge technologies with comprehensive EPC capabilities.
"As the first project of its kind, Villeta will not only set a new standard in green fertilizer production but also support sustainable development in Latin America, creating local opportunities and fostering a resilient, low-carbon economy. By working closely with ATOME and our local teams, we are proud to contribute to sustainable local growth that addresses today's needs and promotes a shift towards a greener future."
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 (Broker) |
+44 (0) 20 3490 0470 |
|
FTI Consulting (Communications Adviser) Elizabeth Adams, Ben Brewerton |
+44 (0) 20 3727 1000 |
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.
About ATOME
ATOME PLC is an AIM-listed company targeting green fertiliser production with a 445-megawatt of project in Paraguay and a further pipeline of potential projects in Central America.
The first project is at Villeta in Paraguay. Villeta 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. 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 sustainability-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.
About CASALE
Founded in 1921, Casale is a privately-owned Swiss company headquartered in Lugano, Switzerland, with over a century of expertise in engineering and technology for the chemical and fertilizer industries. With more than 450 professionals across Switzerland, the Czech Republic, China, India, the United States, and Brazil, Casale is a global leader in sustainable fertilizer production technologies.
Currently, over 300 ammonia reactors operate with Casale technology, and the company has provided licensing for around 80 nitric acid plants and 50 ammonium nitrate solution plants over the past 65 years.
Casale was one of two contractors selected to complete the Front End Engineering and Design (FEED) study for the Villeta project, the world's first fully green fertilizer facility on an industrial scale. This FEED study involved approximately 100,000 engineering hours and the production of 619 individual documents and reports, underscoring Casale's comprehensive expertise and commitment to innovation in sustainable technology.
Casale offers a full range of services, from revamping existing plants to constructing new ones, consistently prioritizing continuous innovation and operational excellence.
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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