Yara has committed to offtake 100% of the green hydrogen-based fertilizers produced by ATOME’s 145MW project in Paraguay.
According to a Heads of Terms agreement, starting from 2027, Yara will receive a long-term supply of 264,000 tonnes per year of calcium ammonium nitrate (CAN) produced by ATOME’s project in Villeta.
The CAN supplied from this project will be integrated into Yara’s new product portfolio, ‘Yara Climate Choice’, which focuses on renewable energy and fertilizers produced through carbon capture and storage (CCS) technologies.
This agreement follows closely after the completion of a front-end engineering and design (FEED) study by the London-listed company, with plans for a final investment decision (FID) by the end of 2024.
ATOME plans to produce green hydrogen using hydropower from the 14GW Itaipu hydroelectric dam as feedstock. They anticipate that using their green CAN could mitigate up to 15 million tonnes of carbon dioxide equivalent (CO2e) emissions over the project’s lifetime.
Olivier Mussat, CEO of ATOME, described the agreement with Yara as a “significant milestone” for advancing the project.
“Securing substantial interest from buyers for our renewable product paves the way for finalizing funding, making the FID, and beginning work at the Villeta site,” Mussat stated.
Chrystel Monthean, Executive Vice-President Americas at Yara, highlighted that signing the agreement marks a step toward expanding Yara’s portfolio of renewable-produced fertilizers into the Americas.
For ATOME, the impact of this agreement extends beyond Villeta. With plans for another 300MW project in Yguazu, Paraguay, and a 120MW site in Costa Rica, Mussat expressed confidence in accelerating these additional developments.
