Atome: Feeding The Future

Villeta is more than just one project. With experienced partners in place and key agreements already signed, the plant can act as a model for future projects in Paraguay and Central America. FID has now been declared, with a US$465 million fixed-price EPC contract with Casale, a 10-year offtake agreement with Yara for 100% of production, and US$665 million of fully secured financing from leading international institutions including the IFC, EIB and Green Climate Fund.

Despite clear progress, ATOME's market value today remains well below the potential value of its projects. FID has now been declared, moving the company from developer to builder. Management remains closely aligned with shareholders as directors and senior management have subscribed for shares at the same 60p price as retail investors in this fundraise, and backing from leading institutions including IFC, KfW DEG, EIB and Hy24 further validates the project.

Global food demand is rising, while fertiliser production remains carbon-heavy and vulnerable to global disruption. ATOME's Villeta project, set to produce 260,000 tonnes of low-carbon fertiliser a year from 2029, is aimed at both cleaner farming and more secure regional supply. Recent supply shocks with fertiliser prices rising to as much as US$800 per tonne following the Iran crisis, underlining the strategic value of a price-stable, fossil-fuel-free supply source.

• First site mobilisation at Villeta: Following the recent approval of the FID, first disbursement of funds is projected for June with site mobilisation to follow. That would show the project has moved beyond planning and financing into real delivery, giving investors clearer confidence that the first plant is now being built.
  

• New development milestones for projects beyond Villeta: Progress on power supply, land, permits or partner agreements for Paraguay and Costa Rica would show that ATOME can repeat the Villeta model. That matters because the investment case becomes much stronger if Villeta is the first of several plants, rather than a one-off project.

• Steady construction progress at Villeta: After funding is fully in place, investors will want to see clear progress on construction, equipment delivery and site works. Hitting visible milestones on time would help build confidence that production can start as planned in 2028.
  

• Second and third projects move closer to build-out: As follow-on projects in Paraguay and Costa Rica advance, investors will start looking at how big ATOME could become beyond Villeta. Success here could materially expand production, diversify risk and turn the company into a broader regional platform.

• First production from Villeta in 2028: Bringing Villeta into production would be the moment ATOME starts turning its development story into operating cash flow. It would also prove that low-carbon fertiliser can be produced at scale in South America and sold into a market that increasingly values secure, local supply.

• ATOME POWER develops into a second growth engine: The new power division is still early, but over time it could give ATOME another source of growth alongside fertiliser. If it secures real projects, it would broaden the story and show the company can build value from renewable infrastructure as well as fertiliser production.

With FID now declared and financing fully secured, the project has moved from development into construction. Although ATOME has taken strong steps to de-risk Villeta through a US$465 million fixed-price EPC contract with Casale, infrastructure projects of this scale and complexity often face unexpected challenges. Potential delays in permitting, supply chain issues, or construction overruns could push out the commercial operation date beyond 2029.

ATOME’s revenue will depend on long-term demand and pricing for fertiliser, which can move with farm economics, energy markets and global events. Recent disruption has supported prices, but fertiliser markets can still swing sharply in both directions. Although the Yara sales agreement should provide some protection, full pricing details have not been disclosed. If today’s tighter market eases before Villeta starts production, or if buyers are unwilling to pay a premium for lower-carbon fertiliser, returns could come under pressure, especially in the early years.

Project-level financing is now fully secured: US$420 million of debt and US$245 million of equity from leading international institutions. ATOME is raising ~£24 million at the parent level to co-invest in the project alongside these institutions. The main residual financial risk is the need for shareholder approval at a General Meeting expected around 13 May 2026, without which the Casale subscription cannot be completed.