ATOME PLC (AIM: ATOM) shares surged on Friday after the company signed a definitive 10-year offtake agreement with Yara International ASA, covering the full 260,000 tonnes per year of low-carbon fertiliser to be produced at its Villeta Project in Paraguay.
The deal marks the final commercial milestone before a final investment decision later this year. Construction of the US$630 million facility is expected to begin in the fourth quarter of 2025. The agreement, which builds on terms announced in July, also includes an option to extend beyond the initial decade.
Highlights
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Definitive Offtake Agreement signed with Yara for the committed purchase of the entire 260,000 tonne-per-year low-carbon fertiliser production, based on 100% renewable baseload power, from the Villeta Project (“Villeta” or “Project”) |
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Yara, headquartered in Oslo, Norway, is the world’s leading crop nutrition, production and distribution company of fertiliser and ammonia products and is at the forefront of decarbonisation in its industry |
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The Agreement is for 10-years with an option to extend |
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ATOME to benefit from Yara’s market-leading distribution network in South America |
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The entry into the Definitive Offtake Agreement marks the completion of the last commercial milestone before declaring FID later in the year |
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ATOME continues to advance progress on finalising the project finance for the US$630 million Villeta Project, with start of construction targeted to commence in Q4 2025 and further announcements expected in due course |
ATOME chief executive Olivier Mussat hailed the agreement as a “landmark milestone” in delivering the Villeta Project:
“We are immensely proud to be part of this first-of-its-kind agreement, the largest low-carbon fertiliser supply agreement globally. As we progress on our broader pipeline of projects alongside Villeta, ATOME continues to collaborate with world-leading partners and offtakers to disrupt traditional commodity markets and pave the way for a cleaner, more sustainable future.”
Chrystel Monthean, Yara’s EVP for the Americas, said the deal aligns with Yara’s ambition to “grow a nature-positive food future” while strengthening its portfolio of fertilisers based on renewable energy:
“This local supply will, in combination with our agronomical knowledge, allow us to respond competitively to market demand. We are looking forward to continuing this strategic, long-term relationship with ATOME.”
