Atome Energy (AIM:ATOM), the AIM-listed green hydrogen and fertiliser developer, said it expects to update the market by the end of August on ongoing issues surrounding a new power purchase agreement (PPA) for its Villeta project in Paraguay.
The update follows previous announcements regarding the PPA, which underpins the project's electricity supply arrangements.
Paraguay has replaced the head of state electricity company ANDE and set up a working group to reassess tariff regimes, with clarity sought in the first part of September. ATOME said its existing 145MW power purchase agreement remains in place and Villeta’s requirements are included in ANDE’s planning through 2050.
The company said a proposed replacement PPA had been negotiated before the relevant presidential decrees were revoked. ATOME continues discussions with stakeholders while taking steps to protect its interests and is working with EPC partner Casale SA to maintain the project timetable.
News Intelligence what this means for the company
Atome Energy is deferring material news on its flagship Villeta project in Paraguay, citing unspecified power purchase agreement issues and promising only a further update by end-August. The company has offered no detail on the nature or severity of the problems, leaving investors in the dark on a project that declared an unconditional final investment decision after securing US$665m in project finance and a 125 MW renewable PPA just months ago. The silence itself signals the issues are neither trivial nor resolved.
Villeta underpins Atome's near-term value and credibility as a developer—it is the flagship asset and targets 2028 operation. Unresolved PPA issues at this stage, after construction commenced in May 2026 and a deal was signed in July 2026, suggest either counterparty friction or regulatory/political headwinds that the company cannot yet disclose. Until August, the market has no basis to assess whether this delays the 2028 timeline, threatens project viability, or is routine renegotiation.
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