ATOME PLC (AIM:ATOM) CEO Olivier Mussat discusses a heads-of-terms off-take agreement with Yara International for fertiliser produced at the Villeta project in Paraguay. This significant milestone involves one of the world's largest fertiliser producers committing to purchasing 100% of the output from Villeta.
Mussat highlighted that this agreement de-risks the project, making it more attractive to project finance investors and marking a global first for industrial-scale green fertiliser production. Yara, partially owned by the Norwegian government, trades over 20 million tons of fertiliser annually, with a substantial market presence in Latin America.
Mussat also discussed the steps ATOME has taken to de-risk the Villeta project, including securing power purchase agreements, land acquisition, and obtaining necessary environmental and operational authorizations. With front-end engineering and design completed, ATOME aims to achieve final investment decision (FID) by the end of Q4, with production targeted for the end of 2027.
Looking forward, Mussat mentioned that while the company is currently focused on Villeta, there are plans to accelerate projects in Paraguay and Costa Rica, leveraging the strategic relationship with Yara to maintain their leadership in green fertiliser.
