Atome Energy and Ande sign PPA in Paraguay to produce hydrogen
The plant can potentially produce up to 55k tonnes/year of green ammonia.
Atome Energy has signed its first major 60 MW Power Purchase Agreement in Paraguay to enable a clear path to near term large-scale hydrogen and ammonia production.
This is the largest PPA ever signed between Ande and an industrial user. The pricing of the power is on the lowest industrial standard user tariff available and will allow Atome to compete effectively on both domestic and world markets. No consideration is payable for the entry into the PPA.
The power which is the subject of the PPA is already available through a new substation built by Ande in Villeta, an important industrial centre 35 km downstream from the capital Asuncion on the River Paraguay. Villeta is the main export port in Paraguay as well as the home of many key industries including fertiliser and cement companies which are ATOME’s natural off-take partners.
Whilst the 60 MW facility in its own right is of world scale, the signing of this watershed agreement represents the first in a series of Atome’s programme for large scale green hydrogen and ammonia production units and is in addition to the 250MW+ projected facility in Paraguay utilising available power from the ITAIPU hydroelectric dam, the second largest dam by output in the world, in respect of which planning work has already commenced.
The next steps of the project comprise the execution of the planning, engineering, procurement, logistics, build out and commissioning stages. All of these require careful coordination and management but will use existing technology and equipment.
ATOME intends to move swiftly to the commissioning of the full FEED work (including procurement and financial planning) with anticipated FID in H2 2022 with the objective of commissioning of the facility and commencement of production at Villeta within 3 years from now.
The facility in Villeta could potentially produce up to 55,000 tons of green ammonia per year, and ATOME has already been unilaterally contacted by a number of potential off-take partners with further approaches expected to become more numerous as worldwide demand for green fuels and fertilisers increase.
Olivier Mussat, CEO of ATOME, commented, “Executing our first major large scale power purchase agreement now comes at the right time in light of the urgency to increase the supply of fertilisers, prices for which have nearly quintupled over the past two years, with ammonia prices now over $1,500/MT.”
Felix Sosa, President of ANDE, added, “We are very pleased with the signing of this contract with ATOME, which is the largest power contract signed to date in a key step for the large-scale production of green hydrogen and ammonia.”