Under the binding deal, the global fertiliser firm will buy green calcium ammonium nitrate (CAN) from the plant in Villeta for a minimum of 10 years, and marks the “last” commercial milestone before Atome takes final investment decision (FID).
Atome has said it will work with Yara to “maximise” the market potential and “premium value proposition” of the product.
Yara already sells low-carbon fertilisers into agricultural supply chains. Yara’s Executive Vice-President Americas, Chrystel Monthean, said the green CAN supply would strengthen the firm’s portfolio and allow it to respond better to demand.
Villeta rendering © Atome
The Villeta project will produce green hydrogen through electrolysis powered by hydropower that will be used as a feedstock for conversion into CAN, offering a far lower carbon fertiliser than conventional production.
“The agreement with Yara is an important validation of our commercial model, underpinned by the market case for the world’s biggest food and beverage producers to urgently address agricultural emissions in their supply chains,” said Terje Bakken, Atome’s Director for Ammonia and Fertiliser Markets.
“Our partnership with Yara, now in final and definitive form, is a landmark milestone in the delivery of our Villeta project in Paraguay,” said CEO Olivier Mussat.
With Atome having signed a $465m engineering, procurement, and construction deal with Casale, as well as inking a $115m investment agreement with Hy24, the developer now expects to take FID before the end of the year.
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