Atome in talks to expand phase 1 of Paraguay project

Green hydrogen and ammonia developer Atome Energy is in talks with Paraguay’s state power company Ande to expand phase 1 of the Villeta project.

“We have already started discussing doubling the size to 120MW and the discussions are extremely advanced and we would expect some news on this over the next couple of months,” Atome CEO Olivier Mussat said during a trading update.

In May, the AIM-listed group signed a 60MW PPA with Ande for Villeta, and since then Atome has appointed Natixis CIB as financial advisor, acquired land, entered into a FEED contract for the electromechanical work and selected Aecom as supervisor.

Mussat added that Atome has approached IFC and IDB to help with financing.

The selection of the full FEED contractor is expected in the coming weeks with the work due to be completed by year-end. A final investment decision is expected in the first quarter of 2023 and construction would begin later next year.

Other recent developments include MOUs with Paraguay’s civil aviation authority Dinac and association of barge owners and operators CAFYM.

Phase 2 envisions a 300MW project associated with the Itaipu hydroelectric dam shared with Brazil.

Atome is in advanced PPA negotiations with Ande for this phase and formalizing arrangements for land and access to water, and for planning, engineering and procurement. A final investment decision is expected by the end of 2023 with production penciled in to begin in 2025-27.

Atome’s trading update release is available here and the slide presentation at this link.