Atome has embarked on a potentially transformative endeavor, signing a $465 million EPC contract with Swiss engineering firm Casale for a 145MW green hydrogen-based fertilizer project in Villeta, Paraguay.
At the core of this initiative lies the production of green hydrogen through hydropower-driven electrolysis. Unlike its grey hydrogen counterpart, which relies on fossil fuels, green hydrogen offers a sustainable alternative, reducing environmental impact. This project, when reaching full operational capacity, anticipates the production of 260,000 tonnes of green calcium ammonium nitrate (CAN) annually, a substantial contribution to cleaner agricultural inputs.
The partnership is contingent upon Atome finalizing its final investment decision (FID) by mid-2025, with an anticipated 38-month construction timeline post-FID. The high-stakes nature of this undertaking is underscored by the involvement of key players such as Hy24, positioned as a crucial equity investor with a prospective $115 million investment. This financial commitment is closely intertwined with the successful signing of offtake agreements and securing necessary lending arrangements.
Yara, a prominent name in the fertilizer industry, has already demonstrated confidence in this project by entering a non-binding agreement to purchase 100% of the plant’s output. This aligns with the broader trend among industry leaders to invest in green technology as a hedge against future regulatory constraints on carbon emissions and a pivot towards sustainability.
This development reflects a broader industry momentum towards integrating renewable energy sources in production processes, fostering a market where environmental sustainability can coexist with economic viability.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
