Last checked at 24 Oct 2022 07:00
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
ATOME MOBILITY PROGRESSES - INCOME TO START NEXT YEAR
ATOME Energy (AIM: ATOM), the only pure international green hydrogen and ammonia production company on the London Stock Exchange with current large-scale projects in Europe and South America as well as a hydrogen mobility division, is pleased to announce further progress on its mobility project in Paraguay.
CPH2 1MW Electrolyser
Clean Power Hydrogen PLC ("CPH") has informed ATOME that it expects to ship the ordered 1MW electrolyser by the end of Q1 2023.
Apart from the deposit already paid of US$300,000, no further payments in respect of the electrolyser are due until Q1 2024 at which time CPH has agreed to upgrade the electrolyser at its own cost with the latest technology now being planned for its series 2023 models.
The electrolyser will be located at the industrial premises of Yguazu Cementos in the Villa Hayes district, being one of the largest cement works in Paraguay with appropriate access to water and electricity, located just outside of Paraguay's capital Asuncion, the largest hub for hydrogen mobility in the country.
As stated by CPH in their half year results announcement on 23 September 2022, ATOME has signed with CPH a Letter of Intent relating to discussing a potential joint venture assembling electrolysers in South America using the technology of CPH. If such venture comes to fruition, ATOME would leverage on the engineering expertise of its partners in the region to whom financial as well as operational responsibility would be assigned leaving ATOME to deploy its resources on its core business of production and sales of green hydrogen and ammonia.
Passenger Vehicles
In 2023, ATOME intends to bring in zero emission hydrogen passenger vehicles on a progressive basis. Particularly ideal for the Paraguay transport environment with long distance passenger and commercial travel and virtually non-existent roadside electric charging points outside urban areas, these zero emissions passenger vehicles have a range of approximately 700km on one tank of some 6-7kg of hydrogen which can be fully filled in under 5 minutes.
According to the IEA, in South America, the transport sector is responsible for 35% of total yearly CO2 emissions and is a potential market for over 200,000 tons of hydrogen per year. ATOME recognises that the market for hydrogen vehicles requires careful education and whilst it is not in its medium-term business model to own or operate fleets of any types of hydrogen vehicles itself it recognises the initial acquisitions are a necessary step to accelerate the creation of the hydrogen mobility market.
The mode of shipping of the vehicles to Paraguay has been identified with a mobilisation length from purchase of approximately 2-3 months with delivery timed to be with the commissioning of the new electrolyser. The Company will start with a first batch of four vehicles and have already identified primary users for the vehicles thereby laying off their purchase cost and operating responsibility, such vehicles using ATOME's hydrogen fuel thereby generating first hydrogen sales for ATOME in 2023.
Commercial Vehicles
Hydrogen commercial long-range vehicles are now being built by an increasing number of major international manufacturers recognising that hydrogen is the only practical solution for zero emission heavy transport. However, the current costs of such turnkey vehicles remain high, even for areas such as Europe which benefit from significant grants, allowances, and subsidies.
Accordingly, the Company is currently working with partners on innovative solutions as to a step-by-step introduction of hydrogen fuel in heavy transport on a cost effective and efficient basis. The geography and logistic position of Paraguay combined with renewable 24/7 available low energy costs are important factors in the country being a fertile place for zero emission hydrogen-powered long-distance transport.
In a similar manner, another potential high growth market is the conversion of existing forklift trucks to run on hydrogen thereby cutting out the need for each forklift to have three batteries (one used, and two on standby) as well as safe storage facilities and disposal issues for such. Hydrogen forklift technology has been at the forefront of hydrogen mobility for several years and such powered forklifts are now widely used by leading international companies including Amazon and Walmart globally.
Olivier Mussat, CEO, commented: "Whilst our flagship industrial scale hydrogen and ammonia project in Villeta in Paraguay progresses rapidly, generating significant interest both domestically and internationally with a constant flow of positive news, our more modest Mobility division, servicing the unique zero emission transport needs of the country is leading the way for the first ever green hydrogen sales in Paraguay and making significant progress on many levels with limited capital exposure and a beneficial financial and income generative structure commencing next year.
"With ATOME Mobility, we are at the forefront of a US$2+ billion per year zero-emission hydrogen mobility market potential in South America. Our expertise as a developer of green hydrogen generation is fundamental and we believe our unique cost-efficient model will provide us with a blueprint model to roll out in other appropriate countries that meet our investment criteria."
For more information, please visit https://www.atomeplc.com or contact:
ATOME Energy PLC Nikita Levine, Investor Relations | +44 (0) 113 337 2210 info@atomeplc.com |
Beaumont Cornish (Nominated Adviser) Roland Cornish, Michael Cornish | +44 (0) 20 7628 3396 |
Liberum (Joint Broker) Cameron Duncan, Kane Collings | +44 (0) 20 3100 2000 |
SP Angel (Joint Broker) Richard Hail, Caroline Rowe | +44 (0) 20 3490 0470 |
finnCap (Joint Broker) Christopher Raggett, Tim Harper | +44 (0) 20 7220 0500 |
Tavistock (Financial PR and IR) Simon Hudson, Rebecca Hislaire, Charles Baister | +44 (0) 20 7920 3150 atome@tavistock.co.uk |
About ATOME
ATOME Energy PLC is an AIM listed company targeting green hydrogen and ammonia production with over 400-megawatt of projects in Paraguay and Iceland, through its subsidiaries ATOME Paraguay, which is wholly owned, and Green Fuel ehf, in which ATOME Energy holds a 75 per cent interest, respectively.
Since its admission to AIM in December 2021 ATOME has signed its first electrolyser purchase order for its hydrogen transport Mobility Division due to start generating revenue in 2023 and signed a large scale 60MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.
ATOME is in the process of operational planning, sourcing and negotiations with green electricity suppliers, equipment providers and offtake partners, including signed memoranda of understanding and cooperation agreements in place with key parties, to use electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay. All chosen sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.
The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Trafigura, one of the world's leading commodity and logistics company, and Schroders, a leading fund manager.
-ends-