Yara to offtake renewable fertiliser from ATOME
By on July 29, 2024
Renewable ammonia, fertiliser to be produced in Paraguay
Click to learn more. Yara will offtake renewable fertiliser produced by ATOME in Paraguay, utilising hydropower from the Itaipu Dam (pictured). Source: ATOME.
A new heads of terms agreement has secured the long-term supply of calcium ammonium nitrate (CAN) produced at ATOME’s Villeta project in Paraguay. 145 MW of hydropower from the Itaipu Dam will power the production of electrolytic hydrogen, ammonia and then CAN fertiliser.
Starting in 2027, 246,000 tons of CAN will be produced per year. Yara will then market and sell this fertiliser as part of its “Yara Climate Choice” product line, including in South American markets that currently rely heavily on imports from overseas. In Europe, Yara has already committed to supplying PepsiCo with Climate Choice fertilisers for potato, oats and corn crops, reaching 165,000 tons per year in supply volume by 2030.
ATOME is targeting FID for the Villeta project later this year. The announcement notes that the offtake agreement also gives ATOME confidence to accelerate development of its other renewable fertiliser projects, including the 300 MW Yguazu project (also in Paraguay) and a 120 MW project in Costa Rica.
The entry into this strategic relationship with global crop nutrition leader Yara is a significant milestone for ATOME on the path to realize our flagship Villeta Project which will be one of the largest renewable fertilizer production facilities in the Western Hemisphere. Proving significant off-taker interest for our renewable product gives a clear path to the finalization of funding, FID and the commencement of work onsite at Villeta.
Olivier Mussat, CEO of ATOME in Yara’s official press release, 24 July 2024
Signing the Heads of Terms for the Villeta project is a first step to open the opportunity to further expand our portfolio with fertilizers produced with renewable energy in the Americas. The fertilizers from Villeta will become part of a new portfolio called Yara Climate Choice, including fertilizers based upon renewable energy and carbon capture and storage. The project’s in-land location could open logistical advantages for some of our growing markets in Mercosur. We are looking forward to developing a strategic long-term relationship with ATOME.
Chrystel Monthean, EVP Americas at Yara in her organisation’s official press release, 24 July 2024
FEED work for the Villeta project was completed at the start of this year by URBAS and Casale. Casale’s flexible ammonia synthesis technology will be utilised at the plant. In 2023, ATOME secured hydropower via a power purchase agreement with Paraguay’s state electricity and power distribution company ANDE.