ATOME PLC Advances Villeta Green Fertiliser Project with $100 Million Funding Agreement
ATOME PLC has secured a $100 million funding agreement with Hy24 for its Villeta green fertiliser project in Paraguay, reducing funding risks. This agreement is part of a larger $625 million funding strategy, with ATOME retaining operational control. The partnership is expected to support the project’s development and enhance food sovereignty in the region, with a final investment decision anticipated by mid-2025.
ATOME PLC (AIM:ATOM) has made significant progress in Paraguay by securing an agreement for at least $100 million in funding for its Villeta green fertiliser project. This arrangement, formalized with Hy24 and its Clean H2 Infra Fund, positions Hy24 as the primary equity investor in a broader funding effort aimed at raising $115 million. Importantly, Hy24’s commitment establishes ATOME’s net interest in the project at an estimated $60 million, allowing the company to manage daily operations and responsibilities.
The agreement outlines a comprehensive funding strategy for Villeta, with a total financial package projected at $625 million, supplemented by at least 60% derived from debt financing. Analysts from SP Angel view this collaboration positively, noting that the entry of a well-funded partner will facilitate funding processes while leveraging industry expertise to expedite project development. They characterize this development as a significant alleviation of near-term funding concerns.
As ATOME advances towards a Final Investment Decision (FID), the preliminary agreement with Hy24 is expected to evolve into a definitive contract, which will include additional equity investors. The timeline for this final investment decision, along with the debt financing commitments, is anticipated before the conclusion of the first half of 2025. Olivier Mussat, the Chief Executive of ATOME, expressed enthusiasm regarding the partnership, underscoring its potential to facilitate the project’s financial closure within the upcoming months.
Hy24’s Chief Executive Pierre-Etienne Franc articulated the company’s dedication to investing in projects that provide greener alternatives. He acknowledged the Villeta project as one of the foremost green fertiliser initiatives in South America. Franc emphasized that the project leverages Paraguay’s remarkable renewable resources and forecasts a notable enhancement in food sovereignty within the region, owing to its experienced management team and strong offtake potential.
In conclusion, ATOME PLC’s recent agreement with Hy24 marks a critical advancement for its Villeta green fertiliser project in Paraguay, securing substantial project funding and minimizing immediate financial risks. This partnership not only facilitates the necessary capital infusion but also aligns ATOME with a reputable investor, thus enhancing the project’s prospects for development. The anticipated FID and supportive funding structure position Villeta as a transformative initiative for food security in South America.
Original Source: www.proactiveinvestors.co.uk
