News and Articles

• ATOME reached final investment decision on the Villeta Project, a USD 665 million low-carbon fertilizer plant in Paraguay. 
• The Villeta Project will produce 260,000 tonnes per year of calcium ammonium nitrate using 100% renewable hydropower. 
• The project is designed to make nitrogen fertilizer without fossil fuel-based production, helping reduce exposure to energy price volatility. 
• Yara International has agreed to buy the full output from the Villeta Project under a 10-year binding offtake agreement. 
• The plant is expected to cut about 500,000 tonnes of CO2e emissions each year and support fertilizer supply across the Mercosur region. 

ATOME PLC has approved the final investment decision for its Villeta fertilizer project in Paraguay, clearing a major financing and development hurdle for a 260,000 tonne-per-year low-carbon calcium ammonium nitrate plant. The company expects construction to begin after the decision, with full production targeted by or before October 2029.

The USD 665 million project is being developed in Villeta, near Paraguay’s main industrial and logistics corridor. ATOME has described the plant as the first industrial-scale low-carbon fertilizer facility of its kind to reach final investment decision, giving the project significance beyond Paraguay’s domestic market.

The plant will use 100% renewable baseload hydropower to produce low-carbon calcium ammonium nitrate, known as CAN, a nitrogen fertilizer widely used in agriculture. Most nitrogen fertilizer production today depends on fossil fuels, particularly natural gas, leaving food supply chains exposed to swings in energy prices and trade disruptions. ATOME’s project is intended to reduce that exposure by producing fertilizer from renewable power in a region with strong agricultural demand.

The project has secured USD 420 million in debt financing from international development finance institutions. IDB Invest, the private sector arm of the IDB Group, coordinated the debt package, with participation from the International Finance Corp., the European Investment Bank, FMO and the Green Climate Fund. The remaining USD 245 million in equity is led by Hy24 through its Clean Hydrogen Infrastructure Fund, with further investment from IFC, KfW DEG, Impact Fund Denmark, Sudameris and ATOME.

ATOME said the project has been developed without reliance on UK government grants or aid, despite being originated by a British company. Natixis Corporate & Investment Banking and GKA Advisors advised ATOME on the financing. The funding package gives the company a route into construction and moves it closer to becoming an operating industrial producer rather than solely a project developer.The Villeta plant also has a defined commercial outlet. Yara International has signed a 10-year binding agreement to take the full production from the project, giving ATOME a long-term customer before operations begin. CASALE, the Swiss engineering group, is involved in the project’s engineering and delivery work.

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ATOME expects the facility to avoid about 500,000 tonnes of carbon dioxide equivalent emissions each year, or up to 12.5 million tonnes across the project’s life. The company is positioning Villeta as proof that large clean hydrogen-linked industrial projects can attract private and development finance when they are tied to low-cost renewable power, bankable customers and strong regional demand. Paraguay’s hydropower resources are central to the project’s economics. The country has abundant renewable electricity, while Latin America remains heavily dependent on imported fertilizer. By placing production in Paraguay, ATOME aims to supply farmers in the Mercosur region with fertilizer made closer to end markets and less tied to fossil fuel price volatility.

The project is also expected to support Paraguay’s industrial base by creating jobs, adding value to local renewable power and expanding the country’s role in regional agricultural supply chains. Development finance backers have presented the investment as a way to strengthen manufacturing capacity while reducing dependence on imported fossil fuel-based inputs. For Hy24 and the wider investor group, Villeta offers a large-scale test of low-carbon hydrogen use in fertilizer manufacturing. For ATOME, the final investment decision marks the start of a new phase in which the company must move from financing and development into construction, commissioning and long-term plant operations.