TIDMATOM
RNS Number : 4269G
ATOME Energy PLC
19 July 2023
19 July 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Significant further progress
Extension of Villeta PPA to 145MW
300MW pre-PPA signed for Yguazu Project
ATOME (AIM: ATOM), the only international green hydrogen,
ammonia, and fertiliser project development company on the London
Stock Exchange, with current large-scale projects in Latin America
and Europe, as well as hydrogen mobility projects, announces an
update on its Paraguay operations.
Highlights:
-- Increase of 120-megawatt ("MW") power purchase agreement
("PPA") at Phase I Villeta Project to 145MW
-- Entry into 300MW pre-PPA agreement for Phase II Yguazu
Project with commencement of necessary studies
-- Approval of ATOME's application for tax-free zone status at
Villeta Project conditional on completion of environmental
studies
-- Multiple expressions of interest from leading international
players for offtake of Phase I Villeta production
-- Final Investment Decision ("FID") for Phase I Villeta expected in Q4 2023
Extension of Phase I Villeta PPA to 145MW
The existing 120MW PPA entered into between ATOME and ANDE, the
Paraguayan National Power Company, has now been increased to a
total of 145MW.
The enlarged PPA enables ATOME to have ample headroom to be able
to deliver the 120MW Phase I Project on a 24/7 constant baseload
basis as well as providing upside flexibility. The power is
immediately available from the recently built Buey Rodeo
substation, less than 300 metres from ATOME's site in Villeta,
Paraguay.
The 145MW PPA for ATOME's totally green project is the single
largest PPA granted to any industrial user in the history of
Paraguay and demonstrates the ambition of Paraguay, soon to be led
by its new President, Santiago Pena, to become a global leader in
green industries.
300MW Pre-PPA signed for Phase II Yguazu, Paraguay
ATOME and ANDE have entered into a pre-PPA agreement for 300MW
of power for ATOME's Phase II Paraguay Project to be based at
Yguazu where there is a newly built landmark 1-gigawatt substation
going through initial testing.
As with the Villeta PPA, the 24/7 power is generated by the 14GW
Itaipu Binacional hydroelectric dam, the second largest by output
in the world which Paraguay shares with Brazil.
The pre-PPA sets out certain studies required by ANDE to be
completed to its satisfaction prior to entry into the formal PPA.
ATOME is now commencing procurement work for such studies with the
objective of completing these before the end of this year.
Tax-free zone Villeta
In relation to its Phase I Villeta Project, ATOME has applied to
the Government of Paraguay to be granted a tax-free zone at
Villeta.
The Company can now report that the Inter-Governmental National
Council of Tax-Free Zones has unanimously approved ATOME's
application for tax-free zone status for its Project at Villeta,
conditional only on the Environmental and Social Impact Assessment
Study ("ESIA"), currently being completed, being satisfactory to
the Ministry of Environment.
The ESIA has been conducted by the well known independent
environmental consultant JGP, following Paraguay and International
standards. It has been part funded by IDB Invest, part of the
Inter-American Development Bank ("IDB"), being the largest
multilateral source of funding projects in Latin America and the
Caribbean with whom ATOME has signed a mandate with the intent of
IDB Invest becoming a key funding partner in the Project.
All factors being equal, and subject always to Government and
Presidential approval, ATOME is targeting to receive certified
tax-free zone status by the end of 2023. Such status brings inter
alia the following benefits which will materially enhance the
economics of the Villeta Project:
-- Tax-free importation of goods and equipment
-- Exemption of VAT on goods and services
-- Only 0.5% tax on invoice value of exports outside of Paraguay with no other profits tax
-- 3% tax on domestic sales of production within Paraguay
Offtake of Phase I Villeta production
ATOME has received several written expressions of interest from
international players to take all of the Company's Phase I
production on a long-term basis.
Whilst it is too early to comment further on this with
discussions ongoing, it demonstrates the presence of long-term
demand for ATOME's production, targeted to start by the end of
2025. The Company is confident that interest in and demand for
ATOME's totally green fertiliser marketed under the ATOME "Green-N"
label will grow both domestically in Paraguay and worldwide during
the time of the build-out process to 2025.
Final Investment Decision
The work towards FID is progressing as with engineering,
procurement, and construction discussions with contractors.
The team of Urbas, Casale, and ATOME's Owner's Engineer AECOM,
together with the Company are all working towards the goal of being
ready for FID in Q4 2023. It is the intention that AECOM, the
multi-national engineering consulting and technology company with a
US$13.1 billion turnover in 2022 will become ATOME's project
manager for the Villeta Project, managing on ATOME's behalf the EPC
contractors.
Further announcements will be made in due course.
Olivier Mussat, CEO, commented:
"Major progress continues to be made on all levels of the
Company with significant milestones being achieved. Whilst we
recognise that we have set ourselves a challenging target for FID
at the Villeta Project at or around the end of the year, we are
progressing with our technical and funding partners in a systematic
manner in order to achieve that goal.
"We look forward to keeping the market informed on a regular
basis between now and then."
For more information, please visit https:// www.atomeplc.com or
contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations info@atomeplc.com
Beaumont Cornish (Nominated Adviser)
Roland Cornish, Michael Cornish +44 (0) 20 7628 3396
Liberum (Joint Broker)
Scott Mathieson, Kane Collings +44 (0) 20 3100 2000
SP Angel (Joint Broker)
Richard Hail, Harry Davies-Ball +44 (0) 20 3490 0470
finnCap (Joint Broker)
Christopher Raggett, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, Charles atome@tavistock.co.uk
Baister
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this announcement, this inside information is now
considered to be in the public domain. The person who arranged for
the release of this announcement on behalf of the Company was Peter
Levine, Chairman.
About ATOME
ATOME Energy PLC is an AIM listed company targeting green
hydrogen, ammonia, and fertiliser production with over 500-megawatt
of projects in Paraguay, Iceland, and Central America.
Since its admission to AIM in December 2021 ATOME has signed its
first electrolyser purchase order for its hydrogen transport
Mobility Division due to start generating revenue in 2023 and
signed a 120MW power purchase agreement with ANDE, the state energy
company in Paraguay for production of green ammonia to produce
industrial scale premium value green fertiliser in 2025. It has
procured 30 hectares of land in Villeta, Paraguay for that
facility, mandated Natixis Corporate Investment Bank and the
multilateral IDB Invest to lead the project funding and the FEED
study is currently underway with the international companies Urbas
and Casale.
In December 2022, ATOME entered into a joint venture with
Cavendish, the renewable energy arm of the substantial and
well-established Purdy Group based in Costa Rica and formed The
National Ammonia Corporation S.A, which is owned equally by ATOME
and Cavendish.
ATOME is in the process of operational planning, sourcing and
negotiations with green electricity suppliers, equipment providers
and offtake partners, including signed memoranda of understanding
and cooperation agreements in place with key parties, to use
electricity generated from existing geothermal sources in Iceland
and hydroelectric power in Paraguay and Costa Rica. All chosen
sites are located close to the power and water sources and export
facilities to serve significant domestic and then international
demand.
The Company has a green-focused Board which is supported by
major shareholders including Peter Levine, Trafigura, one of the
world's leading commodity and logistics company, and Schroders, a
leading fund manager, and from May 2023, Baker Hughes, a global
energy technology company operating in the energy and industry
sectors.
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