Global Economic Times

Atome Energy Secures EPC Contract for Paraguay Green Fertilizer Plant; Final Investment Decision Expected Mid-2025: Pedro Espinola Special Correspondent / Updated : 2025-04-09 08:53:06

Villeta, Paraguay – Atome Energy, a green hydrogen development company, has announced the signing of an Engineering, Procurement, and Construction (EPC) contract worth US$465 million (approximately ₩628 billion) with Swiss engineering firm Casale for a 145MW hydropower-based green ammonia and fertilizer plant to be built in Villeta, Paraguay. The Final Investment Decision (FID) is anticipated in the first half of 2025.

Under this contract, Casale will be responsible for the full engineering, procurement, and construction of a plant capable of producing 260,000 tons of green ammonium nitrate (CAN) fertilizer annually. The process will utilize green hydrogen produced through hydropower-based electrolysis as feedstock for a low-carbon nitrogen production chain.

Casale CEO Federico Zardi stated, "This project will set a global precedent for cost-competitive and sustainable fertilizer production." He emphasized, "We are providing a highly optimized design for Villeta that will set a new benchmark for sustainable fertilizer production at a cost that is competitive with, or even lower than, existing 'grey' fertilizers." He also added that the facility aligns with the company's decade-long commitment to CO₂ reduction technologies in fertilizer manufacturing.

While the EPC contract is contingent upon Atome's final investment decision, the financial groundwork appears solid. Of the total project cost of US$625 million, US$200 million is expected to be financed through debt from the Dutch development bank FMO, and US$135 million from the European Investment Bank (EIB). Atome noted that the debt offers were oversubscribed, demonstrating strong market confidence.

In terms of equity investment, Paris-based hydrogen infrastructure investment firm Hy24 is a key partner, expected to invest between US$100 million and US$115 million after the FID, having already disbursed US$5 million for pre-FID development work.

Atome has faced several delays in reaching FID, but CEO Olivier Mussat emphasized that this EPC contract signing provides significant momentum. He stated, "The Villeta project will be the first step in the execution of our broader project pipeline to establish a leading green fertilizer development platform."

Yara, one of the world's largest fertilizer producers, is slated to purchase 100% of the plant's output under a non-binding agreement, providing another crucial signal to lenders and investors. A formal agreement is expected after the FID.

Upon final approval, construction is expected to take approximately 38 months, with the first production anticipated in 2028. If completed as planned, the Villeta plant is expected to contribute to the global green hydrogen industry and revolutionize the decarbonization of the agricultural sector by bringing zero-carbon nitrogen fertilizers to the market at a competitive cost.