ATOME makes green energy history with $465M deal to build world’s first mega-scale eco-fertiliser plant

How is ATOME accelerating the green fertiliser transition with its Villeta project?

ATOME PLC has marked a pivotal moment in the decarbonisation of agriculture with the signing of a definitive US$465 million Engineering, Procurement and Construction (EPC) contract with Swiss-based Casale S.A., a global leader in fertiliser and ammonia plant technology. The agreement sets the stage for ATOME’s flagship green fertiliser project in Villeta, Paraguay, which is poised to become the world’s first industrial-scale facility dedicated exclusively to producing green fertiliser using 100% renewable power.

The Villeta facility will have a production capacity of 260,000 tonnes per annum and is expected to begin construction in the second half of 2025, subject to a Final Investment Decision (FID). Once operational, it will address a significant sustainability gap in fertiliser production—an industry currently responsible for 2.6 billion tonnes of CO₂ emissions annually, exceeding those of global shipping and aviation combined. ATOME’s model replaces fossil fuel-driven ammonia production with green hydrogen derived from renewable electricity, aiming to redefine supply chains across the Mercosur region.

Detailed engineering has already commenced under Casale’s oversight. The EPC contract is structured as a fixed-price, lump-sum turnkey agreement, reducing execution risk and providing clarity on costs and timelines. It includes a 38-month completion schedule post-FID. ATOME expects to begin commercial production in 2028.

Why is green fertiliser so important for climate-smart agriculture?

Traditional fertiliser production relies heavily on natural gas, particularly for the synthesis of ammonia, a core component in nitrogen-based fertilisers. The emissions-intensive Haber-Bosch process has long been a concern for climate advocates, prompting growing calls for a cleaner alternative. As agriculture continues to account for a large share of global emissions, reducing embedded carbon in fertiliser inputs becomes crucial.

ATOME’s Villeta project aims to directly decouple fertiliser production from fossil fuels. By relying solely on hydropower from Paraguay’s abundant renewable sources, the facility will deliver a sustainable solution to farmers and food producers seeking to lower their Scope 3 emissions. With Mercosur countries ranking among the world’s top exporters of soy, beef, sugar, and corn, the project’s regional relevance is clear.

The site benefits from strategic location advantages, including proximity to energy sources, water availability, and established trade logistics, making it ideally placed to serve both domestic and export markets.

What makes the EPC agreement with Casale a milestone for the energy transition?

The signing of the EPC contract with Casale S.A. is believed to be a global first for a green fertiliser project of this scale. Casale, with over 100 years of experience, has built a reputation for pioneering low-emission technologies in fertiliser production. The company has licensed more than 80 nitric acid and 50 ammonium nitrate plants globally, and over 300 ammonia reactors currently use Casale’s proprietary technology.

Casale was previously appointed to complete the Front-End Engineering and Design (FEED) study for Villeta, contributing nearly 100,000 engineering hours and producing over 600 technical reports. Its reappointment for EPC delivery underlines ATOME’s confidence in Casale’s capability to meet stringent environmental and operational standards.

The EPC contract is based on FIDIC’s Silver Book, a turnkey contract model which allocates design responsibility to the contractor, limits the scope for cost adjustments, and provides greater execution certainty. These features are critical for project lenders and institutional investors considering long-term capital commitments.

How is ATOME financing and de-risking the Villeta development?

The total estimated cost for the Villeta project is US$625 million. In February 2025, ATOME signed Heads of Terms with Hy24, the world’s largest low-carbon hydrogen infrastructure investor, for a proposed anchor equity investment of up to US$115 million. This funding commitment is expected to act as a catalyst for broader project finance discussions.

ATOME has appointed AECOM as technical advisor and White & Case as legal counsel to structure and negotiate project contracts. Natixis and IDB Invest are also supporting the financing strategy. These partnerships underscore the company’s structured and risk-managed approach to delivering capital-intensive green infrastructure.

Meanwhile, an offtake agreement has been signed with Yara International, a major player in global fertiliser markets, to purchase the full output of the Villeta plant once operational. This deal further enhances project bankability and highlights growing corporate demand for decarbonised fertiliser solutions.

What is ATOME’s broader strategy in Latin America?

While Villeta is ATOME’s flagship initiative, the company is simultaneously expanding its green fertiliser ambitions to Central America. In 2022, it formed the National Ammonia Corporation S.A. in Costa Rica with local partner Cavendish S.A., targeting green fertiliser opportunities across the region.

Costa Rica’s energy matrix is over 99% renewable, and the country is a global leader in pineapple and banana exports. This makes it an ideal candidate for low-carbon agricultural inputs. Together with its 445 megawatts of renewable energy projects in Paraguay and an additional 300 megawatts reserved for future use, ATOME is building a scalable platform for clean fertiliser across Latin America.

The company’s board includes experienced energy and sustainability executives and is backed by key institutional shareholders such as Peter Levine, Schroders, and Baker Hughes. Their support reflects confidence in ATOME’s model and its ability to execute green infrastructure at scale.

What does the market say about ATOME’s financial health and investment outlook?

Stock Sentiment and Performance

ATOME PLC trades on the London Stock Exchange under the symbol “ATOM.” As of April 11, 2025, the company’s shares were priced at 43.50 GBp, reflecting a 3.57% daily gain. Despite this uptick, the stock has experienced a 28.69% year-over-year decline, trading well below its 52-week high of 89.00 GBp. This volatility reflects broader market skepticism around early-stage infrastructure ventures and the inherent risks of project execution.

Financial Metrics and Valuation

ATOME remains pre-revenue, with net losses of approximately £5.2 million over the last twelve months and an EPS of -£0.13. The company’s market capitalization stands at just over £20 million, positioning it firmly in the speculative growth category. Its valuation hinges on future project milestones, such as FID and the commencement of commercial production.

Analyst Forecasts and Target Price

Despite the current volatility, analyst sentiment appears cautiously bullish. Consensus 12-month price targets are clustered around 129.53 GBp—implying an upside potential exceeding 200% from present levels. This optimism is largely conditional on the successful execution of the Villeta project, strong project financing closure, and timely completion.

Investment Considerations

Investors with long-term horizons and high-risk tolerance may find ATOME appealing for its pioneering role in green ammonia. However, those prioritising near-term earnings stability may view the stock as too speculative. For existing shareholders, holding the position and monitoring execution milestones through 2025 would be a prudent approach.

What could ATOME’s success mean for global fertiliser and energy markets?

If successfully delivered, the Villeta project could set a precedent for decarbonising one of the most carbon-intensive industrial processes in the global economy. It serves as a tangible example of how emerging hydrogen economies can support hard-to-abate sectors such as fertiliser, steel, and shipping. It also offers a replicable blueprint for integrating renewable power with scalable industrial solutions.

With mounting pressure on agribusiness to adopt sustainable practices, green fertiliser could become a key differentiator for food exporters. ATOME’s early mover advantage, strategic partnerships, and project-ready assets position it to capture this rising demand.

As investors, regulators, and corporates continue to align with climate goals, companies like ATOME—despite their small-cap status—may play an outsized role in shaping the future of global agriculture and energy transition.