ATOME PLC has secured significant funding for its Villeta green fertiliser project in Paraguay, with an agreement of at least $100 million from Hy24’s Clean H2 Infra Fund. This partnership aims to bolster equity investment, alleviate funding risks, and advance the project towards final investment decisions expected by mid-2025. The collaboration is poised to enhance food security in the region while promoting sustainable practices.
ATOME PLC has made significant progress in Paraguay, moving closer to de-risking its Villeta green fertiliser project through a new funding agreement worth at least $100 million with Hy24’s Clean H2 Infra Fund. This heads of terms agreement positions Hy24 as the lead equity investor in a funding round that aims to secure a total of $115 million, effectively valuing ATOME’s stake in the project at approximately $60 million. Moreover, ATOME will retain management of the Villeta Project, overseeing its day-to-day operations while aiming for a comprehensive funding package of $625 million, predominantly through debt financing.
Industry analysts at SP Angel have positively noted that the arrival of a reputable investor like Hy24 could enhance the funding process for both debt and equity, given their extensive knowledge in the sector. This update has been received favorably, as it alleviates some near-term funding uncertainties for ATOME. Despite market caution surrounding the final investment decision (FID) for Villeta, SP Angel underscored that the company’s implied valuation corresponds with the $58.5 million estimation attributed to the initial phase of the project, contributing to a calculated risked net asset value of 200 pence per share for ATOME.
The preliminary agreement between ATOME and Hy24 is anticipated to transition into definitive documentation alongside other equity stakeholders in Villeta within the upcoming quarter, with expectations for a final investment decision to follow. “We welcome Hy24, a worldwide leader in hydrogen private equity finance, as an anchor equity investor and are excited to bring the project to full financial close in the first half of this year,” stated chief executive Olivier Mussat. He emphasized the value of collaboration with Hy24 to enhance project development.
Hy24’s chief executive, Pierre-Etienne Franc, remarked that this partnership signifies Hy24’s inaugural step towards a direct investment in the region through their funding initiative, aimed at promoting sustainable practices. He further asserted, “ATOME’s Villeta project stands as one of South America’s most advanced green fertiliser initiatives” and highlighted the project’s potential to enhance the region’s food sovereignty by effectively utilizing Paraguay’s renewable resources and strong market demand.
In summary, ATOME’s strategic agreement with Hy24 marks a pivotal advancement for its Villeta green fertiliser project, providing essential equity funding and minimizing financial risks. The collaboration is expected to expedite project development and aligns with ATOME’s objectives of sustainable agricultural practices. As the company moves toward a final investment decision in 2025, the partnership underscores a commitment to enhancing food security in the region through innovative green technologies.
Original Source: www.proactiveinvestors.co.uk
