Atome has inked a definitive $465m EPC contract with Swiss engineering firm Casale for its 145MW green hydrogen-based fertiliser project in Paraguay, ahead of an expected final investment decision (FID) by mid-2025
The fixed-price, lump-sum contract sets Casale up to construct the facility in Villeta. Once at full capacity, it will produce 260,000 tonnes of green calcium ammonium nitrate (CAN).
Green hydrogen, produced via electrolysis using hydropower, will be one of the main feedstocks for the nitrogen-based fertiliser.
The deal is conditional on Atome taking FID on the plant, which is expected by the end of H1 2025 – with a construction timeline of around 38 months to first production.
Frederico Zardi, CEO of Casale, said the company would deliver a design for the project that would set “a precedent” for sustainable fertiliser production “costs that are competitive with, or even lower than, conventional grey fertilisers.”
It comes after the developer secured Hy24 as an anchor and lead equity investor in the project with a potential $115m investment – dependent on signing offtake and EPC contracts and finalising lending agreements.
Yara previously signed a non-binding agreement to offtake 100% of the plant’s output.
Atome CEO, Olivier Mussat, said the EPC contract marked another milestone in reaching FID.
“Our Villeta project will be our pathfinder as we continue executing on our wider pipeline of projects to build the leading green fertiliser development platform,” he stressed.
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