ATOME Energy doubles size of first Paraguay green ammonia plant, with FID in second quarter of 2023.
ATOME Energy PLC (AIM:ATOM) intends to double the size of its flagship green ammonia production project in Villeta, Paraguay from 60MW to 120MW and has appointed a consortium of specialist firms to begin front-end engineering design (FEED) work with the intention of making a final investment decision (FID) in the second quarter of next year.
The 120MW facility will be hosted on the 75-acre Villeta site acquired earlier this year, adjacent to a newly built and commissioned substation owned by state energy company ANDE and a few kilometres away from of the navigable Paraguay-Parana Waterway that connects to major port, industrial and agricultural centres in the region.
Since signing a 60MW power purchase agreement (PPA) with ANDE in May, the AIM-listed company said it has agreed with the power company to double the capacity of the ammonia plant.
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The newly enlarged PPA of 120MW of available 24/7 baseload 100% renewable power for the Villeta project is the largest ever signed between ANDE and an industrial user, it said.
It will enable the facility to produce up to 100,000 metric tonnes of green ammonia per year, into a global market where current ammonia production of 178mln tonnes is expected to grow nearly 40% by 2050.
The full FEED study for the enlarged project is now expected to be complete in the second quarter of 2023, and the aim is to make a final investment decision in that same quarter.
ATOME said this keeps it on track to begin full production in the first part of 2025 with the available renewable power meaning that it has no need to build its own power generative capability, thereby saving material time and resources.
Spanish engineering firm Urbas Energy-Ingeser, where South America accounts for two thirds of its international work, has today been appointed as FEED contractor.
Urbas has been appointed to work in cooperation with infrastructure energy specialist TSK and Swiss ammonia specialist Casale.
Casale is among the few licensors that can provide integrated engineering and technology solutions for the full production chain of nitrogenous and phosphate fertilisers including ammonia, ATOME noted.
Olivier Mussat, Chief executive said:
We are grateful for the confidence that ANDE is showing in ATOME by increasing our power supply to 120MW, enabling Paraguay to become the leader on the continent in the fast-growing green hydrogen economy.
He said the FEED contractors appointed are “a very strong consortium of engineering and industrial companies with a track record of delivering ground-breaking energy projects across Latin America and the world, combined with unparalleled expertise in the ammonia sector.”
“In choosing Urbas Energy-Ingeser, TSK and Casale, we have the confidence that they can deliver on time and on budget as they have real expertise along the entire project value chain and on the ground.”
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ATOME Energy doubles size of first Paraguay green ammonia plant, with FID in second quarter of 2023, December 1, 2022
