Atome nominates EPC Contractor as Project Financing Progresses

Atome release

ATOME (AIM: ATOM), the leading developer of international green fertiliser projects, announces its nomination for Engineering, Procurement and Construction ("EPC") contractor for its 145MW Villeta Project ("Villeta" or "the Project") in Paraguay, capable of producing approx. 260,000 tonnes per year Calcium Ammonium Nitrate, and provides an update on continued progress on project finance negotiations.

EPC Contractor

After lengthy consultations, ATOME has selected Casale S.A ("Casale"), a specialised engineering and construction firm based in Switzerland, as its sole EPC contractor for Villeta. As one of the world's most experienced licensors of ammonia technologies in the market, Casale will leverage its suite of cutting-edge technologies in fertiliser production and over 100 years of history in sustainable ammonia and nitrates to deliver ATOME's world-leading innovative facility.

Villeta is an important project for Casale, representing the world's largest dedicated green fertiliser facility upon commencement of operations. Drawing on the expertise and in country knowledge of ATOME's own team, Casale will employ specialist sub-contractors with experience in Paraguay and South America to support development of the facility. 

Further information about Casale please visit: https://casale.ch/

Appointment of Head of Engineering and Project Management

In conjunction with the nomination of EPC contractor and to strengthen the management's core engineering expertise, the Company is pleased to announce that it has appointed Sam Mackilligan BEng MBA to the non-board position of Head of Engineering and Project Management at ATOME with immediate effect.

Sam has over 35 years of experience directing and delivering large-scale and first of a kind infrastructure and energy projects. Prior to joining ATOME, Sam was the Director of Hydrogen for Europe at AECOM, ATOME's current Owner's Engineer, a Fortune 500 engineering consultancy, and acted as project director for several major energy transition projects for clients such as Air Products and BP. Sam was ATOME's relationship lead at AECOM.

Project Finance Update

Project finance for the Villeta Project continues to make good progress for what is expected to be a world-first project of its kind, with care being taken especially as the Company is determined that the eventual structure delivers material upside for shareholders. In this regard, the Company continues to have positive discussions with equity and debt providers for inclusion in the second round of the negotiations which will lead to the final selection of funding partners and completion of the project financing.

The Company is pleased to report that indicative project debt costs have come in below original expectations due to the project's best-in-class development approach, strong partnerships, and climate impact. This stands ATOME in good stead in its continuing discussions with the equity providers. The Company anticipates that a further announcement on this will be provided during the course of the next month.

Unlike many other green oriented projects, the Project's laser focus on low-cost delivery of an innovative product into existing demand centres places Villeta at the forefront of the energy transition's leading projects.

Olivier Mussat, CEO of ATOME, commented:

"The positive feedback during our project finance discussions and favourable project debt costs further validate the strength of our commercial proposition for our green fertiliser offering.

"Nomination of our EPC contractor is one of the final key milestones for our Villeta Project. With over a century of global experience in the sector, Casale demonstrated its expertise, innovation and commitment to sustainability and will be an important strategic partner to realise our flagship project. 

"Developing  innovative solutions to decarbonise hard-to-abate industries can be a complex and lengthy process. However, as ATOME works to deliver for its shareholders by concentrating on a product for which there is existing demand, reaching important milestones like this are important to delivering on our stated targets. 

"We are also pleased to welcome Sam into his capacity as our Head of Engineering and Project Management as we progress to the next stages of the project engineering." 

Federico Zardi, Casale CEO, commented:

"Being appointed as the EPC contractor for the Villeta project is a significant milestone for Casale. With over a century of expertise and an unwavering commitment to safety, quality, and excellence, we don't just dream of a greener planet; together with ATOME, we are shaping it.

"This nomination underscores Casale's position as a trusted partner, capable of delivering turnkey solutions by combining our cutting-edge technologies with comprehensive EPC capabilities.

"As the first project of its kind, Villeta will not only set a new standard in green fertilizer production but also support sustainable development in Latin America, creating local opportunities and fostering a resilient, low-carbon economy. By working closely with ATOME and our local teams, we are proud to contribute to sustainable local growth that addresses today's needs and promotes a shift towards a greener future."