ATOME gets green light on $665M Paraguay green fertilizer plant backed by full 10-year Yara offtake deal
ATOME, the British developer of green fertilizer projects, has reached final investment decision (FID) on its $665mn low-carbon fertilizer plant in Villeta, Paraguay — the world’s first industrial-scale facility of its kind to clear that milestone.
The Villeta plant will produce 260,000 tonnes per year of low-carbon calcium ammonium nitrate (CAN-27) using 100% renewable baseload hydropower from Paraguay’s Itaipu dam, which co-owns the world’s second-largest hydroelectric station with Brazil. Because the facility runs on hydropower rather than natural gas, it is structurally insulated from fossil fuel price swings — including the nitrogen price spike triggered by the US-Iran conflict and Strait of Hormuz disruption.
The entire Villeta production output is committed under a binding 10-year offtake agreement with Yara International, which will market the fertilizer as part of its Climate Choice product line. Swiss engineering firm Casale will serve as EPC contractor on a fixed-price lump-sum basis.
Project financing comprises $420mn in debt coordinated by IDB Invest, with participation from the International Finance Corporation, European Investment Bank, FMO (the Dutch development bank), and the Green Climate Fund. The $245mn equity investment is led by Hy24, the world’s largest low-carbon hydrogen asset manager. ATOME’s shareholders are expected to ratify the FID in May 2026. Construction is set to begin shortly, with commercial operations targeted by October 2029 at the latest. Over its lifetime, the plant is projected to displace 500,000 tonnes of CO₂e annually.
Olivier Mussat, CEO of ATOME, called the FID a “defining achievement” and described Villeta as a replicable blueprint for fossil-fuel-free fertilizer production at industrial scale in emerging markets. ATOME has indicated plans to replicate the model in other countries with abundant renewable power and large fertilizer import dependencies.
Key facts about the ATOME Villeta project
The Villeta plant is located near Villeta, on the Paraguay River, about 35km from Asunción. Paraguay is one of the world’s largest exporters of renewable energy — it consumes only 30% of its 50% share of output from the 14GW Itaipu dam, leaving a large surplus of low-cost hydropower. Paraguay also sits at the center of Mercosur, one of the world’s largest fertilizer-importing regions. Latin America imports more than 90% of its nitrogen fertilizer and pays above-average prices for it.
The $665M financing package comprises $420M in debt from IDB Invest, IFC, the European Investment Bank, FMO, and the Green Climate Fund, plus $245M in equity led by Hy24 alongside IFC, KfW DEG, the Danish development fund IFDK, and Sudameris Bank, Paraguay’s second-largest financial institution. The entire project is financed on commercial terms without UK government grants or aid, which ATOME describes as central to its replicability claim.
The facility will produce 260,000 tonnes per year of calcium ammonium nitrate (CAN-27), a nitrogen fertilizer commonly used across South America. All production is committed under a 10-year binding offtake agreement with Yara International, which will sell the product under its Climate Choice brand. The plant will displace an estimated 500,000 tonnes of CO₂e per year, or roughly 12.5 million tonnes over its lifetime.
ATOME targets full commercial production by October 2029 at the latest. Construction is scheduled to begin shortly after FID ratification by ATOME’s shareholders, expected in May 2026. Casale, the Swiss engineering firm, holds the fixed-price EPC contract. The facility will also produce surplus ammonia available for sale.
Villeta is the first industrial-scale green fertilizer plant globally to reach FID without government subsidies, making it a proof-of-concept for commercial viability in emerging markets. ATOME’s stated ambition is to replicate the model in other countries with large renewable power surpluses and heavy fertilizer import dependency — particularly across Latin America and Africa. The project demonstrates that development finance institutions can structure bankable green industrial projects at scale using development bank debt rather than government grants.
Enjoyed this story?
Every Monday, our subscribers get their hands on a digest of the most trending agriculture news. You can join them too!
Discussion0 comments