Atome Energy (AIM:ATOM), the green hydrogen developer, said it is in active discussions with Paraguay's state power utility ANDE to find a resolution that would allow construction to begin at its Villeta Project, following the revocation of a Presidential Decree in June that had established the regulatory framework for the venture.
The company said its four development lenders, IDB Invest, IFC, the European Investment Bank, and FMO, are participating directly in the discussions alongside Atome, noting that both IDB Invest and the EIB separately provide financial support to ANDE.
Chair Peter Levine said the company had "relied at all times" on the Presidential Decree, signed on 16 January, which created the Power to X regime and set a revised tariff structure for a replacement power purchase agreement with ANDE.
Atome confirmed it retains a 145 megawatt power purchase agreement, originally signed in 2022, under which capacity is reserved exclusively for the company while negotiations on a replacement continue.
Levine described Villeta as the largest single industrial investment in Paraguay's history, citing projections of 4,000 jobs during construction and more than 1,000 during operations, and estimated the project would generate over $1 billion in revenue for ANDE across its life.
Atome said it has formally notified ANDE of its intention to resolve the dispute "expeditiously and fairly to all sides."
