The project, which will be built in Tres Fronteras – an area where Brazil, Paraguay and Argentina converge, close to the Iguazu and Parana rivers – will produce green fertiliser for supply to both the domestic market and regional customers by river export. Final Investment Decision (FID) is expected by Q4 and green hydrogen and ammonia production is targeted for mid-2026.

The PPA with ANDE has been agreed “at the lowest commercial rate”, enabling the production of affordable green ammonia using electricity produced from Itaipú Hydroelectric Dam.

Initial design concept is estimated to produce 10,000MT per year of green hydrogen that will be converted into ammonium nitrate for use as part of NPK fertiliser blends.

Production planned for the domestic market will provide Paraguay with price stability and import substitution for its significant agricultural sector. NeoGreen’s project will provide an estimated $400m of inward investment and generate local employment in both the construction and operational phases.

Since signing the Cooperation Agreement with the ANDE in November 2021, NeoGreen has worked with its consortium partners and with Mott MacDonald to finalise a number of studies.

NeoGreen – which now looks forward to moving the Tres Fronteras project towards Front End Engineering and Design (FEED) stages – has been cooperating with Atria Logistica, the largest river and port logistics company in the Paraguay-Paraná waterway. It plans to build its industrial plant in close proximity to Atria’s Tres Fronteras port, an ideal location to supply much of Paraguay’s main soya producing areas.

Additionally, the newly constructed bridge to Brazil is adjacent to their facility, which will further facilitate access to large Brazilian markets. The access to this port facility also opens up a number of regional
export opportunities for NeoGreen in the future and the port is the intended location of a new fertiliser mixing plant.

Green ammonia, which can be made from green hydrogen via the Haber-Bosch process, is expected to play a key role in decarbonising a number of heavy industries including agriculture. According to an
Ammonia Market Report, today’s global ammonia market is estimated to be worth more than $66bn and is expected to grow to more than $82bn by 2026.

The biggest industrial consumer of ammonia is the fertiliser industry and to meet global climate targets, all the world’s production would have to be converted to green ammonia by 2050.

Following on from the initial Consortium Agreement signed in 2021 with Tocsa SA, a leading local engineering and construction company, to assist with the studies, NeoGreen has since evolved its
partnership with Tocsa to cover the development and management of the project. Technical support for the project will be provided by Siemens Energy, in accordance with an agreement signed in September
2022.

NeoGreen’s Tres Fronteras project is one of a pipeline of projects the company is targeting globally. Last November, NeoGreen announced details regarding its project in the Port of Sines in Portugal, utilising renewable power to produce green hydrogen and e-methanol for export to Western European markets.

Miles Lewis, President of NeoGreen Paraguay, said, “We now consider that we have a thorough understanding of the challenges and opportunities that Paraguay provides as they seek to fulfil their climate goals and, having assembled a consortium of partners, the signing of this PPA will allow us to accelerate development with a view to this initial project entering into production in early 2026.”

He added that it is the group’s intention to progress further technical studies aimed at substantially increasing capacity, as detailed in its initial Cooperation Agreement.

Santiago Bautista Herman, Business Development Manager for South Latam at Siemens Energy, said, The challenges posed around the energy transition can only be successfully faced through alliances
like this, which allow us to collaboratively develop innovative solutions to pave the way towards a low carbon energy ecosystem.”

Ing. Felix Sosa, President of the ANDE, said, ‘’This agreement forms another important step in Paraguay’s green hydrogen roadmap and we look forward to working with NeoGreen and their partners to maximise the efficient use of our renewable energy resources within this emerging industry.”