Yara International ASA has signed a Heads of Terms agreement with UK-based ATOME PLC for all the offtake from ATOME’s renewable calcium ammonium nitrate (CAN) facility under development in Villeta, Paraguay. The facility is expected to make up to 264,000 mt/y of green CAN from 145MW of renewable baseload power starting in 2027.
The announcement comes after ATOME reported in January that it had multiple offtake proposals and was in advanced negotiations for the complete project offtake (GM Jan. 19, p. 25). Front-End Engineering and Design (FEED) study for the Paraguay project was later completed in June (GM June 7, p. 24). A Final Investment Decision (FID) is expected later this year after being postponed from 2023.
According to Yara, the CAN will be exported, marketed, and sold under the YaraBela product line as part of a portfolio called Yara Climate Choice.
“Many of the food companies active in South America have committed to decarbonization targets and our collaboration with them reveals that the decarbonization of the production of fertilizers combined with the use of agronomical best practices can significantly reduce the crops’ carbon footprint,” said Chrystel Monthean, Yara’s EVP Americas.
“Signing the Heads of Terms for the Villeta project is a first step to open the opportunity to further expand our portfolio with fertilizers produced with renewable energy in the Americas,” Monthean added. “The fertilizers from Villeta will become part of a new portfolio called Yara Climate Choice, including fertilizers based upon renewable energy and carbon, capture and storage.”
“The entry into this strategic relationship with global crop nutrition leader Yara is a significant milestone for ATOME on the path to realize our flagship Villeta Project which will be one of the largest renewable fertilizer production facilities in the Western Hemisphere,” said ATOME CEO Olivier Mussat. “Proving significant off-taker interest for our renewable product gives a clear path to the finalization of funding, FID, and the commencement of work onsite at Villeta.”
ATOME said the Heads of Terms agreement with Yara will also help it continue the development of its project pipeline, including a 300MW Yguazu project in Paraguay and a 120MW project in Costa Rica. Both projects are currently negotiating power supply agreements, and Yara will have first look at both projects as part of its relationship with ATOME.