Press Release: ATOME signs US$465 million definitive EPC contract with Casale

Flagship green fertiliser project on track for Final Investment Decision (“FID”) and start of construction

• Definitive EPC Contract signed with Casale S.A., the leading specialist fertiliser and ammonia licensing, engineering and construction firm, for ATOME’s Villeta Project in Paraguay

• Signed contract follows Casale’s appointment as EPC Contractor in November 2024, demonstrating ATOME’s ability to deliver final agreements

• Fixed-price, lump-sum contract value of US$465 million with contracted time to start of production of 38 months from FID

• Detailed engineering has already commenced, with teams being mobilised in the lead-up to FID

• Follows recent announcement on anchor and lead equity investment for Villeta

• Marks another major step towards Villeta FID targeted for end H1 2025

ATOME (AIM: ATOM), the leading developer of international green fertiliser projects, is pleased to announce the signing of the US$465 million fixed-price, lump-sum Engineering, Procurement and Construction (“EPC”) Contract (“Contract”) with Casale for its 260,000 tonnes p.a. flagship green fertiliser plant at Villeta, Paraguay (“Villeta” or the “Project”). The Contract is believed to be the first entered into globally for a dedicated green fertiliser facility of this scale and confirms ATOME’s position as the world’s leader and frontrunner in specialist green fertiliser production.

Due to traditional fossil-fuel production methods, the fertiliser industry emits 2.6 billion tonnes of CO₂ per year – more than the shipping and aviation sectors combined. ATOME’s flagship project in Paraguay will produce 260,000 tonnes of low-carbon fertiliser per year using 100% renewable baseload power, significantly advancing decarbonisation of agriculture and food value chains in the Mercosur region. Once constructed, the Villeta Project will service a developed and ready market in the heart of the largest food-producing region in the world, meeting critical demand for low-carbon fertilisers from the agriculture and food sectors.

Olivier Mussat, CEO of ATOME, commented:

“ATOME is delighted to announce the signing of our EPC Contract with Casale, on time and on track to our project schedule. This underscores our ability to deliver final agreements and marks another milestone achieved as we advance to reach FID for the Villeta Project towards the end of H1 2025. Casale is a world leader in ammonia and fertiliser engineering, and I have every confidence in the team as the right partners to deliver our flagship project in Paraguay, the first green fertiliser facility of its kind.”

“ATOME is addressing significant existing and projected demand for greener alternatives to fossil-fuel-produced fertiliser. Our Villeta Project will be our pathfinder as we continue executing on our wider pipeline of projects to build the leading green fertiliser development platform.”

Federico Zardi, CEO of Casale, commented:

“We at Casale are immensely proud to be an integral part of ATOME’s world-first green fertiliser Villeta project in Paraguay. For over a decade, Casale has been advancing the development of CO₂ emissions-reduction technologies in fertiliser production. Through these technological advancements, we are delivering an extremely optimized design at Villeta, setting a precedent for sustainable fertiliser production at costs that are competitive with, or even lower than, conventional ‘grey’ fertilisers, paving the way to a sustainable agricultural future.”

“This partnership reaffirms our role as pioneers in the industry, consistent with our historical trajectory and DNA. It is an honour to work alongside a company that is as committed to innovation and sustainability as we are, and we are confident in ATOME’s ability to execute on this project, successfully scaling and leading this first green fertiliser platform.”

The EPC Contract

ATOME has entered into a definitive EPC contract with the leading international ammonia and fertiliser contractor and technology owner, Casale S.A, for the construction of the 260,000 tonnes p.a. flagship Villeta facility in Paraguay.

The EPC Contract, which is conditional upon FID, has a fixed price lump sum contract value of US$465 million with a contracted time to start of production of 38 months from FID. In parallel, advanced engineering work has now started. This is consistent with ATOME’s timeline for Project start-up and first sales of green fertiliser during 2028. The Contract is lump sum turnkey on the standard of the Silver Book of the International Federation of Consulting Engineers (“FIDIC”). This internationally recognised form of contract provides the maximum degree of certainty in terms of costs and times, with the contractor responsible for delivery of the Villeta facility ready to be used.

The main features of the Silver Book are:

(i) The Contractor take responsibility for design

(ii) The Contract is on a lump sum basis

(iii) The possibilities for Contractors to request and obtain adjustments are limited

ATOME was advised by AECOM, the multi-national engineering consulting engineering group, and White and Case, the leading international law firm.

As a key gating item, ATOME’s delivery of the signed definitive EPC contract is a precursor to FID and start of construction. This marks the completion of consecutive milestones following the recent signing of equity Heads of Terms with Hy24 (announced 27 February 2025), the world’s largest low-carbon hydrogen asset manager, for up to $115 million as anchor and lead equity investor into the project. The project finance discussions continue on track for FID and start of construction in the summer.

The appointment of Casale, the Swiss-based international leader in ammonia and fertiliser technologies and specialist in engineering and construction, is consistent with ATOME’s commitment to collaborate with outstanding technical partners to deliver this first-of-a-kind project. Casale joins existing industry leaders including Yara, Hy24, AECOM, Natixis, IDB Invest and ANDE as partners to the Project.

The EPC contract value forms a part of the total estimated US$625 million project cost as previously announced.