Project Summary
Led by local, experienced management, ATOME’s objective in Paraguay is to establish a 145MW world-scale green fertiliser project to supply Paraguay and the region’s agricultural and fertiliser markets with sustainable alternatives.
- The 145MW Villeta project will be located 35km from the capital city of Asuncion, on the River Paraguay which is the country’s main import/export facility and within an industrial complex home to fertiliser producers and consumers
- ATOME has signed a 145MW Power Purchase Agreement (PPA) with ANDE, the national power company of Paraguay, which is the largest single PPA ANDE have signed with an industrial user at the lowest industrial tariff
- Villeta will produce up to 264,000 tons per year of Calcium Ammonium Nitrate (CAN) fertiliser, displacing up to 500,000 tons of CO2 per year in emissions
- A Free-Trade Zone was granted to ATOME in November 2023, meaning the project will benefit from exemptions on municipal, VAT, and corporate income taxes
- In February 2024, the Environmental and Social Impact Assessment was completed and published on the IDB website. A copy of the ESIA can be viewed here.
- The Front End Engineering and Design was completed in H1 2024
- In July 2024, ATOME signed Heads of Terms for the long-term sale to Yara International ASA (“Yara”) for all of the production of renewable fertiliser from the Villeta Project
- ATOME is set to reach Final Investment Decision in 2024, with the plant to be operational in 2027
Why Paraguay?
Itaipu dam; one of the seven modern wonders of the world. Paraguay only uses 30% of its 50% share of Itaipu’s 14GW power generation capacity, meaning the country has an abundance of renewable electricity providing the potential for some of the cheapest production of green fertiliser in the world. Paraguay is the world’s largest exporter of energy, having exported US$1.3 billion worth of electricity to Brazil in 2020.
Paraguay has no domestic hydrocarbon production or refineries and imports all of its hydrocarbons as finished products. The country is landlocked, with no railways, and it is heavily dependent on land and river transport for the import/export of goods.
Paraguay has a thriving agricultural sector which accounts for 20% of the country’s total employment. Its main produce is soybean and meat. In 2020, Paraguay exported US$2.1 billion in Soybeans, making it the 4th largest exporter of soybeans in the world. As a result, there is significant domestic demand for fertiliser products which Paraguay entirely imports.
Paraguay is also a founding member of Mercosur bloc, enjoying free trade and travel with Brazil, Argentina and Uruguay which would be ATOME’s natural export markets. Brazil is the world’s largest importer of fertilisers and imports 13.7% of the world’s ammonium nitrate both of which are in jeopardy following the ban on Brazil’s largest trade partner for these products, Russia.
Paraguay has a BB+ Fitch rating (BBB- country ceiling) and a stable export-oriented economy with one of the fastest GDP growth rates in the region (4.1% in 2021). Tariffs are low (10% Corporate and Personal Tax Rate) and obstacles to business and trade are minimal in comparison to other countries in the region.
