Last checked at 28 Nov 2023 07:00
28 November 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Update on Mobility Division
ATOME Energy (AIM: ATOM), the only international green fertiliser project development company on the London Stock Exchange, notes the RNS announcement made by Clean Power Hydrogen Plc ("CPH2") today in relation to the previous production order made by the Company in March 2022. This order was for a 1MW electrolyser from CPH2 slated at that time for a hydrogen mobility project of ATOME.
Since that time in March 2022, ATOME's focus has transitioned to large scale green fertiliser projects which now extend to some 650MW of 100% renewable power across its portfolio, principally in Latin America. In particular, the 145MW Villeta project in Paraguay with its 24/7 baseload power from the grid has now developed into a major project on its own with FEED study (Front End Engineering Design) nearing completion, substantive discussions with EPC contractors at an advanced stage and indicative offers for the debt funding of such project pointing to substantial oversubscription.
The former mobility project is now seen as a diversion from ATOME's core focus on delivering industrial scale green fertiliser, where the Company will be one of the first in the marketplace to meet existing demand in both South America and Europe from 2025. Accordingly, as the CPH2 electrolyser for the mobility project has not yet been delivered, the Company has mutually agreed to cease the order without penalty or other payout to CPH2. This allows CPH2 to concentrate on near home markets and its current partner licences. The deposit of US$300,000 has been returned to ATOME.
Relations with CPH2 remain good and ATOME is pleased to note the announcement made today in relation to electrolysers of CPH2 by G-Mobility, a subsidiary of Green House Capital, currently part of Molecular Energies PLC. The potential for hydrogen mobility in Paraguay remains valid and ATOME looks forward to seeing hydrogen fuelled trucks transporting its products in South and Central America.
Olivier Mussat, CEO, commented:
"With green fertiliser now firmly at the core of ATOME's strategy, the mutual termination of the arrangements with CPH2 allows ATOME to mobilise all its resources and energy on its world class green fertiliser business whilst permitting CPH2 to concentrate on its home markets."
For more information, please visit https://www.atomeplc.com or contact:
ATOME Energy PLC Nikita Levine, Investor Relations | +44 (0) 113 337 2210info@atomeplc.com |
Beaumont Cornish (Nominated Adviser) Roland Cornish, Michael Cornish | +44 (0) 20 7628 3396 |
Liberum (Joint Broker) Scott Mathieson, Kane Collings | +44 (0) 20 3100 2000 |
SP Angel (Joint Broker) Richard Hail, Harry Davies-Ball | +44 (0) 20 3490 0470 |
Cavendish Capital Markets Limited (Broker) Simon Hicks, George Dollemore | +44 (0) 20 7220 0500 |
Tavistock (Financial PR and IR) Simon Hudson, Charles Baister, Saskia Sizen | +44 (0) 20 7920 3150 atome@tavistock.co.uk |
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.
About ATOME
ATOME Energy PLC is an AIM listed company targeting green fertiliser production with 445-megawatt of projects in Paraguay and a further pipeline of potential projects in Central America and Iceland.
Since its admission to AIM in December 2021 ATOME signed a 145MW power purchase agreement with ANDE, the state energy company in Paraguay for acquired 30 hectares of land in Villeta, Paraguay for that facility, mandated Natixis Corporate & Investment Banking and the multilateral IDB Invest to lead the project funding and with Front End Engineering and Design studies currently underway with the international companies Urbas and Casale. ANDE has also allocated a further 300MW for ATOME's second project subject to studies.
In Costa Rica, ATOME has a green fertiliser joint venture with Cavendish, the renewable energy arm of the substantial and well-established Purdy Group based in Costa Rica and formed The National Ammonia Corporation S.A. As well as straddling the Pacific and Atlantic Oceans, Costa Rica is a democratic Central American country. In agriculture, Costa Rica is the second largest supplier of pineapples in the world and is in the top ten banana growers.
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 produce green ammonia at an industrial scale using electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay and Costa Rica. 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, and since May 2023, Baker Hughes, a global energy technology company operating in the energy and industry sectors.
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