Ammonia production company Casale inks $465 million EPC contract with ATOME PLC for a definite project
ATOME PLC, a leading developer of international green fertiliser projects, has signed a definitive Engineering, Procurement, and Construction (EPC) contract worth US$465 million with Casale S.A., a Swiss engineering firm, for the construction of a green hydrogen-based fertiliser plant in Villeta, Paraguay.
The contract marks a significant milestone in the Villeta Project, a pioneering green fertiliser initiative aimed at sustainability and climate impact reduction in the Mercosur region and beyond. Once fully operational, the plant will produce 260,000 tonnes annually of green calcium ammonium nitrate (CAN) fertiliser, designed to reduce the carbon footprint associated with conventional fertilisers.
Casale S.A., with over a century of expertise in engineering and technology for the chemical and fertiliser industries, will be responsible for building the 145MW green hydrogen-based fertiliser plant. The company has provided licensing for around 80 nitric acid plants and 50 ammonium nitrate solution plants over the past 65 years.
The EPC Contract is on a lump-sum basis, with detailed engineering for the Villeta Project already underway. The contracted time to start of production is 38 months from the Final Investment Decision (FID), which ATOME aims to reach by the end of September 2025.
The Villeta Project includes a power purchase agreement for 145 megawatts of renewable electricity and occupies 43 hectares of land in a tax-free zone within Paraguay. Financing for the project includes a $135 million senior debt facility approved in-principle by the European Investment Bank (EIB) and USD 50 million concessional funding from the Green Climate Fund (GCF).
Once constructed, the Villeta Project will service a developed and ready market in the heart of the largest food-producing region in the world. The plant will meet critical demand for low-carbon fertilisers from the agriculture and food sectors, contributing to the decarbonisation of agriculture and food value chains in the Mercosur region.
Casale S.A. consistently prioritizes continuous innovation and operational excellence. The company offers a full range of services, from revamping existing plants to constructing new ones. During the contract negotiation, Casale S.A. was advised by AECOM and White and Case.
The delivery of the signed definitive EPC contract is a precursor to FID and the start of construction. The involvement of major international financial institutions underscores the project's credibility and alignment with global climate objectives. The contract is believed to be the first entered into globally for a dedicated green fertiliser facility of this scale.
ATOME PLC is the leading developer of international green fertiliser projects. The Villeta Project is just one example of ATOME's commitment to creating a sustainable future for the fertiliser industry.
- The Villeta Project, a pioneering green fertiliser initiative led by ATOME PLC, aims to reduce climate impact and promote sustainability in the Mercosur region.
- Once fully operational, the plant will produce 260,000 tonnes annually of green calcium ammonium nitrate (CAN) fertiliser, designed to reduce the carbon footprint associated with conventional fertilisers.
- Casale S.A., with a century of expertise in engineering and technology for the chemical and fertiliser industries, will construct the 145MW green hydrogen-based fertiliser plant.
- The Villeta Project's financing includes a $135 million senior debt facility approved in-principle by the European Investment Bank (EIB) and USD 50 million concessional funding from the Green Climate Fund (GCF).
- Once constructed, the Villeta Project will serve a developed market in the heart of the largest food-producing region in the world, contributing to the decarbonisation of agriculture and food value chains in the Mercosur region.
- ATOME PLC consistently prioritizes innovation and operational excellence in its commitment to creating a sustainable future for the fertiliser industry.
