ATOME launches world’s first industrial-scale green fertilizer project of 260,000 tons per year in Paraguay

Thread Content

British company ATOME has made a final investment decision regarding its 260,000 tons per year low-carbon fertilizer plant project in Villita, Paraguay. This project is the world’s first industrial-scale green fertilizer plant that relies entirely on 100% renewable hydropower, aiming to produce low-carbon ammonium calcium nitrate fertilizers in order to reduce dependence on fossil fuels. The total investment in the project amounts to $665 million, of which $420 million comes from debt financing provided by multilateral development banks, while $245 million is in the form of equity investment from Hy24, the world’s largest low-carbon hydrogen fund. The project has entered into a 10-year underwriting agreement with the Norwegian fertilizer giant Yara International, and is expected to be fully operational by October 2029. During its operation, it will help reduce emissions by up to 12.5 million metric tons of carbon dioxide equivalent, and it will also support Paraguay in shifting toward an export model based on high-value products. ATOME Corporation (an international developer of green fertilizer projects) has reached a Final Investment Decision (FID) for its flagship 260,000-ton/year low-carbon fertilizer plant project in Villota, Paraguay. Villita is the world’s first facility to meet such industrial scale standards (the FID for this facility depends on approval by ATOME’s shareholders in May 2026). Vilita was created and developed by the British company ATOME; it possesses its own commercial value and does not rely on funding or support from the UK government. Construction of the plant is expected to begin shortly after the FID, with full operation anticipated by October 2029 or earlier. Of the $66,500 million allocated for this project, $42,000 million comes from debt financing provided by international leading development finance institutions. This financing is coordinated by IDB Invest, the private sector arm of the Inter-American Development Bank, and is supported by European funds guaranteed by the International Finance Corporation (IFC), the European Investment Bank, the Dutch Development Bank (FMO), the IFC as part of the World Bank Group, KfW DEG in Germany, the Danish Government Development Fund (IFDK), as well as EFSD+ (the European Sustainable Development Fund) under the EU’s Global Gateway strategy; it also includes funds from the Green Climate Fund. The $2.45 billion in equity investment for the project is provided by Hy24, the world’s largest asset manager specializing in low-carbon hydrogen and related derivatives, through its Clean Hydrogen Infrastructure Fund. Additional support comes from the International Finance Corporation, KfW Bank, the Danish Government Development Fund (IFDK), as well as EFSD+ under the EU’s Global Gateway strategy (funded by the European Sustainable Development Fund). The project is led by Sudameris, Paraguay’s second-largest financial institution, and ATOME Company. Decouple food from fossil fuels. Nitrogen fertilizers are essential for feeding over 50% of the world’s population, but at present almost all nitrogen fertilizers are produced by using fossil fuels. The ATOME Velita project utilizes 100% renewable base-load hydroelectric power to produce a low-carbon calcium ammonium nitrate (CAN) fertilizer, free from the impact of fluctuations in fossil fuel prices. The project is located in Latin America, the world’s largest market for fertilizer imports, and it is expected to reduce emissions by up to 12.5 million metric tons of carbon dioxide equivalent over the entire project lifecycle. Vilita is a commercial blueprint for decentralized, secure, and fossil-fuel-free fertilizer production designed for large-scale industrialization. By establishing key project partnerships with demand-side entities such as the Norwegian fertilizer giant Yara International, as well as engineering partners like Cassale, ATOME has created a risk-controlled and highly precise framework to facilitate the rapid expansion of green industrial assets worldwide. As the world’s first industrial-scale low-carbon fertilizer plant that relies entirely on 100% renewable energy, Villita demonstrates the feasibility of using clean hydrogen for industrial production in regions with the appropriate conditions and support, while helping Paraguay transition to a high-value, export-oriented production model. Project overview: Production volume: 260,000 tons of low-carbon urea per year. Supply volume: A binding 10-year agreement with Yaren International Asa ensures the supply of all production volume. Environmental impact: Reduction of 500,000 tons of carbon dioxide equivalent emissions. Location: Villita, Paraguay – located at the heart of the world’s largest fertilizer import market.