Global demand for food is growing with the population, pushing the need for higher crop yields and more efficient fertilizer. Agriculture and food companies need cleaner and cost-effective fertilizers to reduce their carbon footprints. As we have seen in the energy industry, net zero legislation, like the EU Emissions Trading Scheme (or ETS) and the Carbon Border Adjustment Mechanism (CBAM) is being implemented fast. Under the Science Based Targets initiative (SBTi) agriculture and food companies are targeting corporate emissions reductions across all scopes.

The deal between Atome and Yara covers the long-term supply of all of the Calcium Ammonium Nitrate (CAN) from Atome’s renewable production facility in Villeta, Paraguay. The 145 MW fertilizer project will produce and export fertilizers derived from baseload renewable power from 2027.

The Front-End Engineering and Design (FEED) study was completed in the first half of 2024, and Atome targets to reach a final investment decision this year. Once completed, Villeta will produce up to 264,000 tons per year of CAN fertilizer.

Olivier Mussat, Atome CEO, commented, "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."

Chrystel Monthean, EVP Americas at Yara, added, "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."