Atome Energy (AIM:ATOM), the AIM-listed low-carbon fertiliser developer, said discussions continue with counterparties in Paraguay over the terms of a power purchase agreement for its Villeta project.
The Government of Paraguay has expressly indicated it wants the project to succeed, according to the company.
Atome said its international commercial partners and lenders remain supportive of the project, naming IDB Invest, IFC, the European Investment Bank, FMO and the Global Climate Fund among the backers.
The Villeta project aims to produce low-carbon fertiliser at scale, a development the company says would place Paraguay on the world map of fertiliser production.
Atome said the scheme would also create thousands of jobs and support the country's food supply as its agricultural sector grows.
Barring material developments before then, the company expects to provide its next update to the market in the first part of August.
News Intelligence what this means for the company
Atome Energy says power purchase agreement negotiations for its Villeta project in Paraguay remain ongoing, with the Paraguayan government publicly backing the scheme's success. The company has secured support from major development finance institutions (IDB Invest, IFC, EIB, FMO, Global Climate Fund) and reports that commercial partners and lenders remain engaged. Construction commenced on 22 May 2026 following an unconditional final investment decision and US$665 million of project financing, but the PPA—a critical prerequisite for operations—remains unsigned as of this announcement.
The announcement confirms institutional backing and government intent but does not resolve the material dependency on a signed power purchase agreement, which remains in negotiation. Until the PPA is finalised, execution risk on the 2028 commissioning target persists. If / when it lands, the agreement will be a value catalyst.
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