Villeta Green Ammonia Project of ATOME Reaches Tax-Free Zone

ATOME (AIM: ATOM), a prominent developer of international green fertilizer projects, has announced the successful execution of the Free Trade Zone ("FTZ") contract for its flagship 145MW Villeta project in Paraguay. This milestone follows the Presidential Decree signed on November 14, 2023, which authorized and directed the grant of FTZ status to the project. The Villeta Project’s FTZ designation is particularly significant as it represents only the seventh such status granted by Paraguay. This achievement underscores ATOME's commitment to advancing green technology and enhances the project's potential to leverage economic and operational benefits associated with FTZ status.

The FTZ contract designation grants the Villeta Project tax-exempt status, allowing ATOME to benefit from exemptions on municipal, VAT, and corporate taxes, thus enhancing the project's economic efficiency. This designation, coupled with the recent agreement with Yara International ASA for the long-term off-take of Villeta's entire production, reinforces the project's strong commercial proposition and strategic value.

The contract for the Villeta Project features a 30-year term, offering transparent legal and fiscal certainty throughout the project's lifespan. The contract, effective from August 1, 2024, includes exemptions from VAT on sales of goods and services from Paraguay to the FTZ, the import of equipment and services (customs tax), and services provided to the FTZ. This comprehensive agreement supports the project's long-term stability and economic efficiency.

Furthermore, the FTZ contract stipulates a 0.5% tax on revenue from export sales to third countries, with no corporate income tax (CIT) applicable. It also includes a 3% effective CIT on profits from sales within Paraguay. Additionally, the agreement provides exemptions from CIT and/or withholding taxes on remittances of profits or dividends by FTZ users to third countries, as well as on all payments for fees, commissions, interest, and other remuneration related to services from third-party countries. Local and municipal taxes and charges are also exempt under the FTZ agreement.

James Spalding, President of ATOME Paraguay, remarked on the significance of finalizing the Free Trade Zone contract, highlighting it as a major milestone shortly after securing a Heads of Terms agreement with Yara for future Villeta production. He expressed gratitude for the steadfast support from Paraguay's government and regulatory authorities, acknowledging the country’s recent investment grade status from Moody's Ratings. Spalding emphasized ATOME's commitment to advancing the project and contributing positively to both the company and Paraguay's economic development.

ATOME PLC is a publicly traded green tech company focused on producing eco-friendly fertilizers. With a substantial 445-megawatt project pipeline in Paraguay and additional opportunities across Latin America, the company is rapidly expanding its footprint. Their flagship Villeta project, backed by a robust power purchase agreement and tax incentives, is nearing completion with a major offtake deal secured. ATOME is currently in advanced negotiations to secure project financing and achieve a final investment decision by the end of the year, positioning itself as a key player in the sustainable agriculture sector.