Macquarie Asset Management has made a significant investment of up to $325 million in Atlas Agro Holding AG (Atlas Agro) and its affiliated projects through the Macquarie GIG Energy Transition Solutions (MGETS) fund.
This substantial financial backing marks a vital step in the development of industrial-scale green nitrogen fertilizer plants that are set to revolutionize the agricultural sector in the United States and Latin America.
Atlas Agro’s innovative approach involves the use of green hydrogen in its fertilizer production processes, replacing the conventional method reliant on fossil fuels. This forward-thinking business model aims to produce carbon-free nitrate fertilizers locally in agricultural regions, challenging imported products with substantial carbon footprints resulting from both production and transportation.
William Demas, Americas Head of Macquarie Asset Management Green Investments, expressed the company’s commitment to this visionary project, stating that Atlas Agro boasts a highly experienced management team with a strong track record of reducing environmental impact in fertilizer plant operations. He emphasized the shared vision of driving the next phase of the energy transition.
Petter Østbø, CEO of Atlas Agro, welcomed the partnership with Macquarie Asset Management, noting the firm’s extensive experience in project development and infrastructure, its ability to provide diverse expertise, and its dedication to accelerating decarbonization in industries that are challenging to transition.
This substantial investment is poised to propel Atlas Agro’s expansion plans in the Americas and beyond, enabling the company to realize its vision of offering a sustainable alternative to conventional fossil-fuel-based fertilizer products. These conventional products are significant contributors to greenhouse gas emissions, making Atlas Agro’s approach a key player in reducing environmental impact.
One of the notable aspects of Atlas Agro’s strategy is the use of green hydrogen as a feedstock rather than merely an energy carrier, aligning well with Macquarie Asset Management’s energy transition thesis in the United States.
SpareBank 1 Markets AS acted as the financial advisor, while Homburger AG provided legal counsel to Atlas Agro. Meanwhile, Allen & Overy LLP served as legal counsel to Macquarie Asset Management. This investment represents a remarkable fusion of green innovation and sustainable agriculture, holding the potential to significantly reduce carbon emissions in a traditionally emissions-intensive sector.