Project detail - ATOME PLC

Who is our prospective customer?

ATOME PLC ("Atome PLC" or the "Sponsor") is a UK-based company listed on the London Stock Exchange since 2021 under the ticker AIM: ATOM. Atome PLC focuses on developing and operating projects involving green hydrogen, ammonia, and fertilizers, driving sustainable solutions in the energy sector. ATOME is developing a green fertilizer project in Paraguay: the 145 MW Villeta Green Fertilizer Project comprises the construction, operation, and maintenance of a green fertilizer plant with a yearly production capacity of 264,000 tons of green Calcium Ammonium Nitrate (“CAN”). The green hydrogen, ammonia, and fertilizer will be produced using 100% green electricity from the Paraguay grid (sourced from the Itaipu and other hydro projects). The plant is expected to be operational by the second half of 2028.

What is our funding objective?

The transaction is an up to USD 200 mln loan, and the proceeds will finance the development, construction, and operation of a Green Fertilizer Plant in Paraguay.

Why do we want to fund this investment?

The transaction fits well with FMO’s Green Hydrogen Strategy as it is an opportunity to decarbonize the fertilizer value chain in the context of a growing population and demand for fertilizers for food production in line with SDG 2. Furthermore, FMO's additionality is evident in addressing the scarcity of long-term debt financing options in Paraguay, thereby catalyzing green fertilizer development.

What is the Environmental and Social categorization rationale?

The project is an environmental and social risk category B+ investment, to be confirmed during DD. This is related to the risks from both the Construction Phase (CAN fertilizer plant) and the Production Phase (CAN). The environmental and social risks have been determined in the Environmental and Social Impact Assessment (ESIA), prepared by a qualified international expert, and based on relevant local legislation and the FMO Sustainability Criteria, including the IFC Performance Standards 2012. Project risk management is based on an Environmental and Social Management System (ESMS) and underlying Environmental and Social Management Plans based on the results of the ESIA. The applicable IFC PS are 1, 2, 3, 4, and 6. Performance Standard 5 on land is not applicable (willing seller – willing buyer). Performance 7 on Indigenous Peoples is not applicable according to the ESIA (this will be verified during Due Diligence; some families identified as Indigenous Peoples live in the region but are not directly impacted by the project). Performance Standard, 8 on Cultural Heritage, was not identified in the ESIA as applicable. After signing the Contracts, FMO will monitor the environmental and social performance of the project with the help of qualified external experts, site inspection visits including community meetings, and review of environmental and social reporting.