- Completes total US$665 Million of Debt and Equity Funding
- Validates ATOME’s Replicable Platform for Global Food Security
ATOME, the developer of international-scale green fertiliser projects, has reached the Final Investment Decision (FID)1 on its flagship 260,000 tonne-per-year low-carbon fertiliser plant in Villeta, Paraguay (Villeta).
Villeta is the first industrial-scale facility of its kind globally to achieve FID. Villeta was originated and developed by British company ATOME and stands on its own commercial merits, without reliance on UK government grants or aid. Construction of the plant is expected shortly following FID with full production projected to commence by or before October 2029.
The US$665 million project funding comprises US$420 million of debt financing provided by leading international development finance institutions, coordinated by IDB Invest, the private sector arm of the IDB Group, together with the International Finance Corporation (IFC), a member of the World BankGroup, European Investment Bank, FMO – the Dutch Entrepreneurial Development Bank and Green Climate Fund. The US$245 million project equity investment is led by Hy24 – the world’s largest lowcarbon hydrogen and derivatives pure-play asset manager – investing through its Clean Hydrogen Infrastructure Fund, together with IFC, KfW DEG, IFDK (Danish Government Development Fund) backed by an EFSD+ (European Fund for Sustainable Development+) guarantee under the EU Global Gateway strategy, Sudameris – Paraguay’s second largest financial institution, and ATOME PLC. Natixis Corporate & Investment Banking and GKA Advisors LLP acted as financial advisors to ATOME PLC on the transaction.
Decoupling Food from Fossil Fuels
Nitrogen fertiliser is critical in feeding over 50% of the global population but virtually all nitrogen fertiliser today is produced using fossil fuels. Geopolitical instability, such as the current conflict in the Middle East, therefore has a direct impact on energy and fertiliser prices and supply chain structures which lead to food insecurity and price rises. ATOME’s Villeta Project utilises 100% renewable baseload hydropower, enabling the production of a low-carbon Calcium Ammonium Nitrate (CAN) fertiliser, independent from fossil-fuel volatility. The project is in the heart of Latin America, the world’s largest fertiliser import market, and will displace up to 12.5 million tonnes of CO2e over the project’s life.
A Replicable Global Platform
Villeta is a commercial blueprint for decentralised, secure fossil fuel-free fertiliser production at industrial scale. With key project stakeholder partnerships across offtake – with Norwegian fertiliser giant Yara International ASA – and engineering – with Casale S.A. – ATOME has established a de-risked, highfidelity framework for the rapid expansion of green industrial assets worldwide.
A Watershed Moment for ATOME and Paraguay
The declaration of FID transitions ATOME from a developer into a significant industrial producer. Reaching this US$665 million funding milestone materially de-risks the project and establishes a clear path to construction. As a UK-led initiative, ATOME has successfully delivered a bankable template for the energy transition, proving that industrial-scale green projects can be financed entirely on their own commercial merits.
Villeta will generate strong environmental and social benefits in Paraguay, creating jobs, strengthening the country’s industrial base. It will improve fertiliser supply resilience across the Mercosur region. As the world’s first dedicated industrial scale low-carbon fertiliser plant relying solely on 100% renewable power, Villeta demonstrates the viability of clean hydrogen in industrial manufacturing in the right jurisdictions with the right support, while assisting Paraguay’s shift toward value-added, export-oriented production.
Project Summary:
- Production: 260,000 tonnes/year of low carbon CAN
- Offtake: 10-year binding agreement with Yara International ASA for the full production
- Environment: Displaces 500,000 tonnes of CO2e annually.
- Location: Villeta, Paraguay – in the heart of the world’s largest fertiliser import market.
Project film: Villeta – The World’s First Dedicated Industrial Scale Low-Carbon Fertiliser Plant
CEO of ATOME, Olivier Mussat, said: 'Reaching FID at Villeta is a defining achievement for ATOME which originated, developed and will continue to manage the project through construction and operation. This bankable industrial platform is set to revolutionise the global agricultural sector. Villeta is only the beginning as ATOME rolls out its replicable blueprint, proving that the green transition doesn't need subsidies to be profitable. It needs the right commitment, engineering and partners.
'We are grateful to the President and Government of Paraguay and its people for their tremendous support and encouragement, as well as to our strategic partners, Casale, our Swiss EPC contractor, and our offtaker, Yara International, the Norwegian global fertiliser company.'
Co-founder and CEO of Hy24, Pierre-Etienne Franc, said: 'In today’s geopolitical context, sovereign, local fertilizer supply is strategic. With the Villeta project, ATOME has brought together a strong team, a committed ecosystem and a cost-competitive platform. This is anchored by Paraguay’s fundamentals, including abundant, low-cost renewable hydropower and a prime location at the heart of regional agricultural demand - alongside leading customers and tier-one partners. Hy24 is proud to lead the investor consortium in supporting ATOME to build a reference project for tomorrow’s sustainable, sovereign and competitive fertilizer industry.'
CEO of Impact Fund Denmark, Lars Bo Bertram, said: 'This is exactly the type of investment we want to pursue at Impact Fund Denmark. Investments that deliver attractive returns and long-term value creation. We are helping to build new, greener industries in a region with significant potential for growth and development, while also contributing to a marked reduction in dependence on fossil fuels.'
Conor McEnroy, Chairman of Sudameris Bank said: 'We are pleased to support ATOME in its project in Paraguay. This is a complex and cutting-edge project and the skills shown by ATOME are testament to their ability to deliver. The EPC, Casale, is of the highest quality and the breadth of financial backing is top of class. For Sudameris this transaction confirms its long-held belief in Paraguay as an ideal location for advanced industrial processes in the manufacture of inputs for sustainable economic activities. We congratulate ATOME and the Government of Paraguay on their shared vision and the realization of this $665 million project, the first of its kind in the world.'
European Commissioner for International Partnerships, Jozef Síkela, said: 'This project shows what Europe’s Global Gateway is about in practice: turning our investments into benefits for both Europe and our partners. For Paraguay, it means building a modern, clean fertiliser industry, creating local value and jobs while contributing to sustainable agriculture and food security. For Europe, it supports the strategic positioning of European companies in the Latin American market.'
IFC’s Division Director for Argentina, Brazil, Paraguay and Uruguay, Manuel Reyes-Retana, said: 'The ATOME Villeta project aligns with IFC's mandate – as it helps transform Paraguay’s manufacturing base while creating job opportunities. By taking subordinated risk, mobilising concessional finance from the Green Climate Fund, and committing equity, IFC is helping launch a first-of-its-kind green hydrogen project that strengthens the regional food supply chain by producing the fertilisers that the Mercosur region needs on more resilient, sustainable terms.'
European Investment Bank Vice-President, Ioannis Tsakiris, said: 'Disruption in the Strait of Hormuz has exposed the vulnerability of global fertiliser supply chains as well as our energy security. With this investment, public and private investors as well as multilateral development banks have joined together in a model partnership to finance the first industrial-scale green hydrogen fertiliser plant outside the European Union. This is a major contribution to the resilience and food supply of our Mercosur partners in Paraguay and the stability of the wider region.'
CEO at FMO, Michael Jongeneel, said: 'FMO’s participation reflects our commitment to catalyzing first-of-a-kind climate-aligned industrial investments that reduce emissions while strengthening food security and economic resilience. By supporting Villeta, we aim to help establish a replicable model for sustainable fertilizer production that can be scaled across Paraguay and the wider Mercosur region.'
CEO of Casale, Federico Zardi, said: 'At Casale we have been a true believer of the importance and urgency to decarbonise fertilizer production and we are, therefore, very glad that this important project is finally becoming a reality, a small but very significant step into making the production of food sustainable. We are very proud to be the technology and project execution partner of such a landmark project, and to be able to contribute to its success story with our state-of-the-art designs for low carbon fertilizer production.'
Source: ATOME
