Yara Partners with ATOME PLC on Renewable Calcium Ammonium Nitrate (CAN) Sale Agreement

Yara International ASA, a prominent global player in crop nutrition solutions, has entered into a strategic heads of terms agreement with ATOME PLC, a leading developer of sustainable fertilizer projects. The agreement outlines Yara's commitment to purchase the entire output of ATOME's forthcoming renewable Calcium Ammonium Nitrate (CAN) production facility, strategically located in Villeta, Paraguay. This collaboration marks a significant step forward for both companies, underscoring their shared dedication to promoting sustainable agriculture and reducing the environmental impact of fertilizer production.

The Heads of Terms agreement establishes a strategic, long-term commercial relationship wherein ATOME commits to supplying its entire Calcium Ammonium Nitrate output from the renewable Villeta, Paraguay facility. Under this agreement, Yara will market and sell the fertilizer under its YaraBela product line. The 145 MW fertilizer project, set to commence in 2027, will leverage baseload renewable power to produce and export fertilizers, aligning with sustainable energy goals and enhancing Yara's product offerings.

Olivier Mussat, CEO of ATOME, emphasized the importance of entering into a strategic relationship with global crop nutrition leader Yara. He noted that this partnership is a significant milestone for ATOME, paving the way to realize the flagship Villeta Project, which is set to become one of the largest renewable fertilizer production facilities in the Western Hemisphere. Mussat highlighted that demonstrating significant off-taker interest for their renewable product provides a clear path to finalizing funding, reaching the final investment decision (FID), and commencing onsite work at Villeta.

Olivier also expressed gratitude for the collaboration with Yara, acknowledging the team's effort and trust. He emphasized his anticipation for a long and mutually beneficial relationship, highlighting the significance of this partnership in advancing ATOME's goals and fostering sustainable growth in the renewable fertilizer sector.

ATOME PLC has successfully concluded the Front-End Engineering and Design (FEED) phase for its Villeta project during the first half of 2024, positioning the company to make a final investment decision later this year. Upon completion, the Villeta facility is set to produce up to 264,000 tons per year of Calcium Ammonium Nitrate fertilizer. This production is anticipated to significantly reduce emissions in the sector, contributing to more sustainable agricultural practices and environmental benefits.

The successful completion of the FEED study empowers ATOME to expedite development across its project portfolio, notably the 300 MW Yguazu project in Paraguay and the 120 MW Costa Rica projects. This momentum underscores ATOME's commitment to expanding its renewable energy footprint and advancing its ambitious sustainability initiatives across multiple regions.

Chrystel Monthean, EVP Americas at Yara, emphasized the company's commitment to decarbonizing food systems, aligning with the decarbonization targets of many South American food companies. She highlighted that the decarbonization of fertilizer production, combined with agronomical best practices, can significantly lower crops' carbon footprints. The Heads of Terms for the Villeta project marks the beginning of expanding Yara's portfolio with fertilizers produced using renewable energy. These fertilizers will be part of the new Yara Climate Choice portfolio, which includes products based on renewable energy and carbon capture and storage. Monthean also noted that Villeta's in-land location could provide logistical advantages for growing markets in Mercosur, and she looks forward to a strategic long-term relationship with ATOME.