Project Summary
ATOME’s objective in Yguazu is to establish a 300MW world-scale green fertiliser project to supply Paraguay and the region’s agricultural and fertiliser markets with sustainable alternatives.
- ATOME’s second Paraguay project in Yguazu is over double the size of Villeta, bringing the total project pipeline in Paraguay to 445MW
- ATOME has signed a 300MW Pre-Power Purchase Agreement (Pre-PPA) with ANDE, the national power company of Paraguay, with a formal PPA targeted for H2 2024
- The Pre-PPA studies are now complete, catalysing selection of the best site location for the facility
- Yguazu will produce up to 225,000 tons per year of zero-carbon ammonia, with the facility being capable of multi-product green fertiliser production
- The project will benefit from the Villeta Development blueprint and ATOME’s in country reputation
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.
