Atome PLC (LSE:ATOM) is continuing to advance its flagship Villeta green fertiliser project in Paraguay as it seeks to finalise a power purchase agreement with state utility ANDE. The fully funded development, regarded as the country’s largest single industrial investment, is expected to create thousands of construction and permanent jobs while supplying low-carbon fertiliser to Paraguay and the wider Mercosur region. The company is relying on an existing 145MW power contract agreed in 2022 and continues to work with Paraguayan authorities and lenders, including IDB Invest, IFC, the European Investment Bank and FMO, to resolve outstanding issues following the recent revocation of a presidential decree that had supported the project.
Atome said it has formally expressed its commitment to reaching a swift and mutually beneficial agreement with ANDE, highlighting the strategic importance of the Villeta project for both Paraguay’s economic development and the utility’s long-term objectives. The company estimates the development could generate around US$1 billion in revenue for ANDE over its operational life. Management also dismissed recent Paraguayan media reports suggesting the utility had rejected an earlier proposal, stating that the reports relate to an outdated 2025 submission and that negotiations have since progressed on revised commercial terms. Atome warned that any failure to proceed could result in the associated economic benefits and employment opportunities being relocated to another jurisdiction.
Despite the project’s strategic significance, Atome’s investment outlook continues to reflect its early-stage financial profile. The company remains pre-revenue, is reporting ongoing losses and continues to generate negative free cash flow, leaving it exposed to future funding requirements. Technical indicators offer a more positive picture, with the shares trading above key moving averages and supported by a positive MACD signal. However, valuation remains difficult to assess because of negative earnings and the absence of a dividend.
More about Atome Energy PLC
Atome PLC is an AIM-listed developer of industrial-scale green fertiliser projects across Latin America. Its flagship Villeta development in Paraguay is designed to use renewable electricity to manufacture low-carbon fertiliser for domestic agriculture and export markets across the Mercosur region, supporting industrial development while contributing to the transition towards more sustainable food production.
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