ATOME Paraguay Update

Locally Funded Land acquisition completed

FEED and FID on track

ATOME Energy (AIM: ATOM), the only pure international green hydrogen and ammonia production company on the London Stock Exchange with current large scale projects in Europe and South America as well as hydrogen mobility projects announces further progress for its subsidiary, ATOME Paraguay.

Highlights

• The purchase of the 30 hectare site for the Villeta project now completed
• Purchase funded with market competitive commercial mortgage from a leading Paraguay bank
• Front End Engineering Design (“FEED”) study progressing with AECOM, ATOME’s project manager
• Final Investment Decision (“FID”) on track for Q2 2023: Natixis CIB has issued teaser for project funding of the Villeta facility with significant interest already shown
• As a step towards FID, global energy and chemicals advisory company NexantECA has been appointed as market consultant

Land acquisition completed

Following the announcement made by ATOME on 5 September 2022 regarding the procurement of the 30 hectares (75 acres) of land for the Company’s Villeta green hydrogen and ammonia project facility, ATOME is pleased to announce that it has completed the acquisition of the land for US$900,000 (Nine Hundred Thousand US dollars).

Sudameris Bank, a leading Paraguay bank, has provided a market competitive commercial mortgage to fund the acquisition with payment terms tailored to project flows. This is ATOME’s first borrowing facility which further demonstrates the rapid progress of the Villeta project and reflects the credibility of ATOME in Paraguay as well as showing the commitment of Sudameris to promote clean energy in Paraguay’s transition to a greener economy.

Villeta project FEED and FID process update

Further to ATOME’s announcement made on 1 December 2022 regarding entering into the FEED contract, the related study work led by international contractors Urbas and Casale underway with AECOM, the international engineering consultancy acting as ATOME’s Owners Engineer, project managing the process for the Company.

With a fast track schedule, FID remains projected to take place during Q2 2023. As part of the necessary prelude to this, in December Natixis CIB, ATOME’s international financial advisor, sent out a teaser on the world scale green hydrogen and ammonia Villeta project to substantial infrastructure and green funds, multi-laterals, industry players and relevant institutions.

On the back of the teaser, significant amount of interest has already been shown in Villeta including the important feature of utilising baseload 24/7 existing power to enabling ATOME to expeditiously progress to full production of 100,000 tonnes of green ammonia in 2025.

ATOME, which is fully funded to FID of the Villeta project, is therefore optimistic that it will be able to successfully fund the 120MW facility within the specific purpose Villeta project vehicle without the need of direct funding into the vehicle by ATOME. This will crystalise and unlock the significant value built up by ATOME in the Villeta project and minimise dilution in the public parent company allowing ATOME as a group to focus on other strategic opportunities in green hydrogen and ammonia production which are now actively being pursued.

Market consultant appointed

Another necessary step towards FID has also been taken by ATOME, with the appointment of NexantECA to provide an independent market view of global grey and green ammonia market. NexantECA is a leader in the provision of market dynamics and pricing data in both established and emerging energy transition markets such as green ammonia. Its data is used by energy, refining, and chemical industries and financiers. As well as being required by potential funders of Villeta, the study will provide key data for ATOME’s ammonia marketing strategy as it seeks to maximize the value for the production from Villeta.

Olivier Mussat, CEO of ATOME, commented:

“With the land aquisition now completed following the support of Sudameris Bank and the appointment of NexantECA to conduct a market study, ATOME continues to deliver on its milestones to FID. The Company looks forward to working with Sudameris Bank in the future on Paraguayan green energy projects and is appreciative of the Bank’s foresight in supporting the drive towards a green economy in the country. We are also advancing on the project funding process and seeing significant amount of interest from international financial sources on funding the green hydrogen and ammonia Villeta project led by our Financial Adviser Natixis CIB, one of the world leaders in hydrogen and energy infrastructure funding.”

Conor McEnroy, Chairman of Sudameris Bank commented:

“We are pleased to back this UK foreign direct investment project for green energy and green fertilizer in Paraguay.

Paraguay is a leader in green energy in the Americas with 100% of electricity generated from renewables. The installation of Atome’s large-scale green hydrogen and ammonia plant benefitting from the country’s baseload green hydro-power is perfectly aligned with Paraguay’s declared sustainable policies for industry, transportation and farming, together with its objective to be at the forefront of decarbonisation in South America.”

Mais Haddadin, Global Sustainbility Lead of NexantECA commented:

“It is our pleasure to support ATOME on their journey by providing a clear and independent outlook of how this market will likely evolve. Green ammonia will play a key role in the decarbonisation pathway of numerous industries assisting in meeting the climate neutrality commitments. NexantECA is committed to supporting ATOME and the industry transition towards carbon neutrality and more sustainable pathways with lower GHG emissions, clean energy and the circular economy.”

Below is an interview with ATOME’s CEO Olivier Mussat. Olivier highlight his aspirations for ATOME, the board’s growth strategy and the opportunity open to the group