Atome inks crucial deal in plans for Costa Rica project

14th Feb 2024 12:28

(Sharecast News) - Green fertiliser developer Atome reported significant advancements through its Central America subsidiary National Ammonia Corporation (NAC) on Wednesday, as it worked towards a pivotal green fertiliser initiative in Costa Rica.

The AIM-traded firm said NAC had initiated a framework collaboration agreement with Instituto Costarricense de Electricidad (ICE), the state power entity of Costa Rica, aimed at evaluating the feasibility of providing renewable energy for a green ammonia and fertiliser venture.

It said the agreement was a critical step towards securing 100%-renewable baseload electricity for Costa Rica's maiden large-scale industrial green ammonia and fertiliser undertaking.

The board said the project, akin in magnitude to Atome's Villeta project, stood to capitalise on key insights garnered, reinforcing the company's stature as a preeminent developer of large-scale green fertiliser projects across Latin America.

Under the agreement, NAC, jointly owned by Atome and Cavendish, would collaborate with ICE on feasibility studies, design considerations, and economic assessments.

The studies, expected to conclude in the second half of 2024, were set to pave the way for an agreement on renewable power provision for the project.

"Within a year since the creation of NAC, thanks to the significant progress on our Villeta project and our strong local team led by Cavendish SA, we have been able to establish an excellent working relationship with ICE with the aim of building Costa Rica's first green fertiliser facility," said chief executive officer Olivier Mussat.

"There is a substantial local market for the fertiliser we intend to produce as well as being strategically located to access global markets.

"Costa Rica is viewed as a prime investment destination with significant existing foreign investors such as Intel, Microsoft, and Amazon."

Mussat said that, while the 145MW Villeta phase one project remained the company;s near-term priority, the progress made in Costa Rica was "significant news" for Atome.

"Beyond adding another flagship project to our pipeline, it is a demonstration of Atome's business plan and its growing reputation as a world leader in green fertiliser.

"It also shows that Atome's own developed technical and commercial IP is able to be replicated on a cost-effective basis elsewhere giving us a significant edge in speed of mobilisation, costs and efficacy."

At 1206 GMT, shares in Atome were up 11.13% at 58.35p.

Reporting by Josh White for Sharecast.com.