Yara and ATOME sign pivotal agreement for green fertilizer supply

Yara, a global leader in crop nutrition, has entered into a strategic agreement with ATOME PLC, an innovator in green fertilizer projects, to secure the long-term supply of Calcium Ammonium Nitrate (CAN) from ATOME’s renewable production facility in Villeta, Paraguay. This collaboration marks a significant step towards sustainable agriculture in South America.

Under the Heads of Terms signed on July 24, 2024, Yara will market and distribute the CAN fertilizer produced at the Villeta plant under its YaraBela product line. The 145 MW project, expected to commence operations in 2027, will harness baseload renewable power to produce up to 264,000 tons of CAN annually. This initiative aims to reduce emissions significantly within the agricultural sector.

The successful completion of the Front-End Engineering and Design (FEED) study in early 2024 sets the stage for ATOME to reach its Final Investment Decision (FID) within the year. This progress not only advances the Villeta project but also accelerates ATOME’s broader project pipeline, including the 300 MW Yguazu project in Paraguay and the 120 MW Costa Rica projects.

Chrystel Monthean, Yara’s Executive Vice President for the Americas, highlighted, “Decarbonizing food systems is at the forefront of our strategy. Our collaboration with ATOME supports the decarbonization goals of many South American food companies and underscores the potential to reduce the carbon footprint of crops through renewable fertilizer production.”

Monthean further noted that the fertilizers from Villeta will be part of Yara’s new Yara Climate Choice portfolio, which includes products based on renewable energy and carbon capture and storage. The project’s location in Paraguay offers logistical advantages for Yara’s expanding markets in the Mercosur region.

As Yara and ATOME embark on this long-term partnership, they aim to set a new standard for sustainable fertilizer production, benefiting both the environment and agricultural communities across South America.