Atome Plc Secures $465 Million EPC Contract for Green Fertilizer Project in Paraguay
Why we think this is very good
The signing of the definitive EPC contract with Casale for Atome's flagship green fertilizer project in Paraguay is a significant milestone for the company. The contract value of $465 million represents a substantial revenue opportunity, and the involvement of a leading industry partner like Casale provides strong validation for the project. Additionally, the secured equity investment from Hy24 reduces the funding risk, further strengthening the outlook for the project's successful execution.
Key Points
- Atome Plc has signed a $465 million EPC contract with Casale S.A. for the construction of its 260,000 tonnes per annum green fertilizer plant in Villeta, Paraguay
- The contract has a fixed price and a timeline of 38 months from Final Investment Decision (FID) to the start of production
- Casale, a leading international ammonia and fertilizer contractor, has been appointed as the EPC contractor
- Atome has secured an equity investment of up to $115 million from Hy24, the world's largest low-carbon hydrogen asset manager, as the anchor and lead investor for the Villeta project
Summary
Atome Plc has signed a definitive $465 million EPC contract with Casale S.A. for the construction of its 260,000 tonnes per annum green fertilizer plant in Villeta, Paraguay. The contract has a fixed price and a timeline of 38 months from Final Investment Decision (FID) to the start of production. This represents a significant revenue opportunity for the company, as the contract value is substantial compared to Atome's current market capitalization. The involvement of Casale, a leading international ammonia and fertilizer contractor, as the EPC contractor provides strong validation for the project. Additionally, Atome has recently secured an equity investment of up to $115 million from Hy24, the world's largest low-carbon hydrogen asset manager, as the anchor and lead investor for the Villeta project, reducing the funding risk.