ATOME PLC has secured a crucial partnership with Hy24, obtaining at least $100 million in funding for its Viletta green fertilizer project in Paraguay. This collaboration is expected to mitigate funding risks and expedite project development. Hy24’s involvement provides valuable industry expertise, potentially enhancing food security in the region through sustainable agricultural practices.
ATOME PLC (AIM:ATOM) has advanced its Viletta green fertilizer project in Paraguay through a pivotal agreement securing at least $100 million in project funding. This partnership with Hy24, facilitated by its Clean H2 Infra Fund, designates Hy24 as the principal equity investor in a funding initiative aimed at raising $115 million, with a commitment of no less than $100 million directly to the project.
The investment will evaluate ATOME’s net interest in the Viletta project at approximately $60 million. ATOME will continue to oversee the day-to-day operations and management of the project. Notably, this financial backing is part of a larger funding strategy valued at $625 million, which anticipates that at least 60% will be sourced from debt financing.
Analysts at SP Angel remarked that this engagement with a reputable partner mitigates some of the funding uncertainties and supports both debt and equity fundraising efforts while providing invaluable industry insight to expedite the project’s progression. They expressed that this development diminishes short-term funding risks.
The preliminary agreement is expected to progress to definitive agreements in the upcoming second quarter, alongside other equity stakeholders. A final investment decision that includes debt financing commitments is anticipated before the conclusion of the first half of 2025.
Chief Executive Olivier Mussat expressed enthusiasm about partnering with Hy24, emphasizing their expertise and the potential for a full financial closure within the current year. Mussat articulated that this partnership validates ATOME’s model of creating shovel-ready projects that ensure robust financial returns while positively impacting development.
Hy24’s Chief Executive Pierre-Etienne Franc remarked on this collaboration as a landmark investment in the region, highlighting ATOME’s Viletta project as a leader in South America’s green fertilizer sector. He affirmed the project’s ability to bolster food security across the region due to Paraguay’s vast renewable resources and strong market potential.
In conclusion, ATOME’s strategic agreement with Hy24 serves as a significant milestone for the Viletta green fertilizer project, securing crucial funding and expertise to accelerate its development. The anticipated scale of the project aims to enhance food security in the region, underlining the importance of sustainable practices. This partnership not only elevates ATOME’s valuation but also positions it favorably in the renewable industry landscape.
Original Source: www.proactiveinvestors.co.uk
