ATOME Energy has finalized a decade-long offtake agreement with Yara International for the entire output of its planned low-carbon fertilizer facility in Villeta, Paraguay, marking the last commercial step before a final investment decision (FID) on the $630 million project.
Under the deal, Yara will purchase all 260,000 tonnes per year of calcium ammonium nitrate (CAN) fertilizer produced using renewable hydropower, providing ATOME with guaranteed demand and access to Yara’s established distribution channels across South America.
Positioned near key agricultural markets in Argentina and Brazil, the Villeta plant aims to replace imported, fossil-based fertilizers with a product manufactured from green ammonia, generated by electrolysis powered entirely by Paraguay’s baseload hydro resources.
Fertilizer production is a major source of greenhouse gas emissions, responsible for more than the combined footprint of shipping and aviation, according to UN data. ATOME’s process promises to reduce lifecycle emissions while maintaining crop yields, targeting food and beverage supply chains under pressure to decarbonize.
The offtake follows ATOME’s July 2024 heads of terms with Yara and complements recent milestones, including a $465 million EPC contract with Casale and Hy24’s entry as anchor equity investor. Project financing is progressing with an equity club and senior lending syndicate, with construction targeted to begin by Q4 2025. Yara, already marketing low-carbon fertilizers to major global agrifood companies, said the partnership will strengthen its regional portfolio while supporting farmers in shifting to cleaner nutrient inputs.
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