UK-based ATOME Energy Plc has decided to use its planned green hydrogen/ammonia complex in Paraguay (GM May 12, p. 1) to produce 250,000 mt/y of green calcium ammonium nitrate (CAN), the company announced on May 22. ATOME hopes to make a final investment decision and begin construction by the end of the year at its 75-acre site in Villeta, with the project scheduled to start production in second-half 2025.
“Our Villeta project is increasingly recognized as one of the most advanced and cost-effective green hydrogen and ammonia projects in the world,” said Olivier Mussat, ATOME CEO. “As such, discussions are underway with numerous leading international offtakers who have expressed interest in purchasing the entire planned green fertilizer production from Villeta.
“Our new commercial division has seen significant incoming market demand, which has underpinned our shift in strategic direction to incorporate a downstream proposition,” he added. “There is a clear and compelling commercial rationale to harness our Villeta plant so that it produces green fertilizer. With the EU being the largest consumer of CAN in the world and the Mercosur region being the largest importer of CAN – all of which are currently derived from hydrocarbons – the market potential for 100% green CAN is vast.”
ATOME said the global market for CAN is forecast to grow to US$43 billion by 2030.
While the company expects to expend more funds to build the plant and is seeking to add an additional 300MW of immediately available renewable power to its Paraguay business, it is holding to the 2025 start-up date.
The Villeta project extension to fertilizer will be accomplished with the same industry professional teams already appointed and currently working on the front-end engineering design (FEED) study, including ATOME’s owner’s engineer, multi-national Fortune 500 consulting firm AECOM, international Spanish contractor Urbas, and Swiss ammonia and fertilizer contractor Casale.
ATOME said other green projects are currently in discussions in Costa Rica and Iceland.
In addition to the CAN news, ATOME announced that Houston and London-based Baker Hughes, the global energy technology company, has subscribed £2.4 million in cash for a total of 2,526,316 new ordinary shares of ATOME at a price of £0.95 per share, representing 6.6% of the enlarged issue share capital of the company. ATOME has granted Baker Hughes the right of first offer to supply ATOME with compressors. The proceeds of the subscription will be used for general working capital.