Yara, a global leader in crop nutrition, and ATOME PLC, a prominent developer of international green fertilizer projects, have signed a Heads of Terms agreement for the offtake from ATOME’s renewable Calcium Ammonium Nitrate (CAN) project in Villeta, Paraguay.
This agreement encompasses the long-term supply of all CAN produced at ATOME’s renewable facility in Villeta. Yara will market and sell this fertilizer under the YaraBela product line. The 145 MW fertilizer project, set to produce and export fertilizers derived from baseload renewable power, will commence in 2027.
The Front-End Engineering and Design (FEED) study was completed in early 2024, with ATOME PLC aiming to reach the Final Investment Decision (FID) later this year. Once operational, the Villeta facility is expected to produce up to 264,000 tons of CAN fertilizer annually, significantly reducing sector emissions.
“This strategic relationship with Yara is a crucial milestone for ATOME, paving the way for our flagship Villeta Project, which will become one of the largest renewable fertilizer production facilities in the Western Hemisphere. Demonstrating significant off-taker interest for our renewable product clarifies our path to finalizing funding, FID, and initiating work onsite at Villeta,” said Olivier Mussat, CEO of ATOME.
The agreement also boosts confidence for ATOME to accelerate other projects, including the 300 MW Yguazu project in Paraguay and the 120 MW Costa Rica projects.
“We appreciate the collaboration and trust of the Yara team and anticipate a long, mutually beneficial relationship,” added Mussat.
Chrystel Monthean, EVP Americas at Yara, stated, “Decarbonizing food systems is central to our strategy. Many food companies in South America are committed to decarbonization targets, and our collaboration shows that decarbonizing fertilizer production, combined with best agronomical practices, can significantly reduce the carbon footprint of crops. Signing the Heads of Terms for the Villeta project is the first step in expanding our portfolio with fertilizers produced from renewable energy in the Americas. Fertilizers from Villeta will be part of our new Yara Climate Choice portfolio, which includes products based on renewable energy and carbon capture and storage. The project’s inland location could offer logistical advantages for our growing markets in Mercosur. We look forward to a long-term strategic relationship with ATOME.
