ATOME Signs Definitive 10-Year Offtake Agreement with Yara for Low-Carbon Fertiliser Production

Yara commits to buy all Villeta output for 10 years – a bankability boost for ATOME

ATOME PLC has signed a definitive offtake agreement with Yara International for the entire output from its Villeta low‑carbon fertiliser project in Paraguay. The contract runs for a minimum of 10 years and covers 260,000 tonnes per year of Calcium Ammonium Nitrate (CAN) produced using 100% renewable baseload hydropower.

This is the final commercial milestone before project financing and Final Investment Decision (FID). ATOME is targeting FID and a start to construction before the end of 2025, with ground-breaking aimed for Q4 2025.

What exactly has been signed?

An “offtake” is a long‑term sales contract that commits a buyer to purchase output from a project. In this case, Yara has agreed to buy all of Villeta’s production for 10 years, with an option to extend. The agreement is “committed purchase” in nature, which matters for lenders assessing the project’s revenue certainty.

Yara is a major global player in ammonia and fertiliser. ATOME gains not just a buyer but access to Yara’s sales and distribution network in South America, a key advantage in the Mercosur market.

Key numbers at a glance

Buyer	Yara International ASA
Product	Low‑carbon Calcium Ammonium Nitrate (CAN)
Annual volume	260,000 tonnes per year
Power source	100% renewable baseload hydropower
Term	10 years, option to extend
Project location	Villeta, Paraguay
Project capex	US$630 million
EPC contract	US$465 million fixed‑price, lump‑sum with Casale
Power PPA	145MW renewable power purchase agreement
FID and construction	Targeted before the end of 2025; construction aimed for Q4 2025
Equity	Hy24 announced as anchor and lead equity investor (amount not disclosed)

Why this matters for investors and lenders

Bankability is about showing lenders that revenues will be reliable. A committed 10‑year offtake for all production ticks that box. It also validates ATOME’s commercial model of selling premium low‑carbon fertiliser into markets where demand for decarbonised inputs is rising.

ATOME says this completes the last commercial step before FID. The sequence is clear: front‑end engineering done, fixed‑price EPC signed with Casale, anchor equity investor named (Hy24), and now a full offtake with a top‑tier buyer. That de‑risks several key variables at once – price certainty, market access and construction cost.

What the project intends to produce and why the market cares

Villeta plans to make CAN fertiliser from “green” ammonia, itself produced using renewable electricity. Fertiliser is a big emissions source: the RNS notes that approximately one‑third of human‑caused greenhouse gas emissions relate to food production, and fertiliser use and production outweigh shipping and aviation combined.

By locating in the Mercosur region – one of the world’s largest food export hubs and a major fertiliser import market – Villeta aims to displace fossil‑fuel‑based imports, much of which still comes from Russia and China, with a locally produced low‑carbon alternative. Proximity to Brazil and Argentina should help logistics and margins, while Yara’s network provides reach into farm supply chains.

Timeline to funding and build

ATOME is “progressing the constitution of the equity club” alongside arranging a senior lenders’ syndicate. With the offtake now locked in, the focus turns to finalising project finance for the US$630 million build cost.

The company targets FID and construction start before year‑end 2025, specifically Q4 2025 for breaking ground. Further announcements on financing are expected in due course.

Commercial positives I see

• Revenue visibility: A committed 10‑year offtake for 260,000 tonnes per year underpins lender models and long‑term cashflows.
• Cost certainty: A US$465 million fixed‑price, lump‑sum EPC with Casale helps contain construction risk.
• Market access: Yara’s distribution in South America should accelerate adoption and support any low‑carbon premium.
• Strategic fit: 145MW of renewable power and a site in a tax‑free zone at Villeta align with low‑cost, low‑carbon production.
• Momentum: Offtake signed, engineering defined, anchor equity named – a coherent pre‑FID package.

What’s not disclosed and the key risks

• Pricing terms: The agreement volume and tenor are clear, but price formulae and any low‑carbon premium are not disclosed.
• Financing close: Debt and full equity commitments are not yet finalised. Interest rates, lender conditions and hedging could affect returns.
• Execution: Even with a fixed‑price EPC, schedule risk remains. Start of construction is targeted for Q4 2025.
• Operational ramp‑up: Delivering 260,000 tonnes per year reliably from a new plant will be closely watched.
• Market dynamics: Fertiliser prices are cyclical. Premiums for low‑carbon products will need continued end‑customer pull‑through.

How this positions ATOME in the low‑carbon fertiliser space

ATOME is building around a regional thesis: produce at scale using renewable baseload power, close to major food producers, and sell through a first‑rate channel partner. The company describes this Yara deal as part of the largest low‑carbon fertiliser supply agreement globally. Whether or not that superlative holds, the strategic signal is loud – industrial‑scale buyers are ready to contract low‑carbon volumes for a decade.

With a 445‑megawatt project slate in Paraguay and further pipeline in Central America, plus up to 300MW of additional renewable power reserved in Paraguay, ATOME is trying to set a template that can be replicated. The Villeta offtake is the proof‑point that should unlock project finance if lenders agree with the economics.

Jargon buster

• Offtake agreement: A contract where a buyer commits to purchase output from a project, often used to secure financing.
• FID (Final Investment Decision): The point at which the company formally commits to build and spend the capital.
• EPC: Engineering, Procurement and Construction contract – usually lump‑sum, transferring construction cost risk to the contractor.
• CAN (Calcium Ammonium Nitrate): A nitrogen fertiliser widely used for its stable, readily available nitrogen profile.

My take: a meaningful de‑risking, with financing now the swing factor

This is a strong, value‑accretive step for ATOME. A decade‑long, full‑production offtake with Yara gives lenders what they want to see and bolsters confidence that a low‑carbon premium can be captured in practice, not just in pitch decks.

The outstanding question is financing. With Hy24 in as anchor equity investor and a fixed‑price EPC in place, ATOME has lined up the usual pre‑FID ingredients. Bringing the debt syndicate across the line will determine whether shovels hit the ground in Q4 2025 as planned.

Net result: materially positive. It reduces commercial risk and improves project bankability. Watch for announcements on debt terms, equity club composition and any disclosure on pricing mechanisms. If those fall into place, Villeta could become a flagship low‑carbon fertiliser plant in the Mercosur region.

Where to read more

Company materials and contacts are available at atomeplc.com. Pricing details and financing terms are currently not disclosed.