ATOME PLC (LSE:ATOM) has issued a Notice of Dispute and Intent to Submit a Claim to Arbitration under the UK–Paraguay Bilateral Investment Treaty following the revocation of presidential decrees relating to its US$665 million Villeta green fertiliser project.
The company alleges that the Paraguayan government’s decision to revoke key decrees supporting the project and its power purchase agreement breaches protections provided under the bilateral investment treaty.
ATOME said the measures affect the development of the Villeta project, which is intended to establish a green fertiliser production facility in Paraguay.
The company has obtained an independent assessment of potential damages, which it described as substantial. No specific damages figure was disclosed in the supplied information.
The Notice of Dispute calls on the Paraguayan government to seek an amicable resolution within three months.
If the parties do not reach an agreement during that period, ATOME intends to pursue arbitration through the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C.
The company has not yet commenced arbitration, and its allegations have not been established through an arbitral ruling.
The dispute introduces uncertainty over the future development of the Villeta project, including its anticipated economic and employment contributions.
ATOME said its other projects remain unaffected by the dispute and that it will provide further updates as developments occur.
The UK-listed company focuses on green fertiliser and hydrogen-related industrial projects, with operations concentrated in South America.
Its Villeta project has an estimated value of US$665 million and has attracted backing from multilateral development banks and strategic investors, including Schroders, Baker Hughes and Casale.
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