Yara Signs 100% Equity Agreement with Atome for Villeta Project

Yara, a global crop nutrition producer, and Atome, an international green fertilizer project developer, have signed offtake terms for Atome’s renewable CAN project in Villeta, Paraguay.

Global demand for food is growing along with population, driving the need for higher crop yields and more efficient fertilizers. Agriculture and food companies need cleaner, more economical fertilizers to reduce their carbon footprint. As we have seen in the energy sector, net zero emissions legislation such as the EU Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) are being rapidly implemented. Under the Science Based Targets Initiative (SBTi), agriculture and food companies are achieving corporate emissions reductions across all sectors.

The agreement between Atome and Yara covers the long-term supply of all calcium ammonium nitrate (CAN) for Atome’s renewable energy production facility in Villeta, Paraguay. The 145 MW fertilizer project will produce and export fertilizers generated from baseload renewable electricity from 2027.

The front-end engineering and design (FEED) study was completed in the first half of 2024, and Atome plans to make a final investment decision this year. Once completed, Villeta will produce up to 264,000 tonnes of CAN fertilizer per year.

Olivier Mussat, CEO of Atome, said: “This strategic partnership with Yara, a global leader in crop nutrition, is a major milestone for ATOME in realising the flagship Villeta project, which will be one of the largest renewable fertilizer production facilities in the Western Hemisphere. Demonstrating strong off-taker interest in our renewable products provides a clear path to finalise funding, FID and commence field work at Villeta.”

Chrystel Monthean, Executive Vice President of Yara Americas, added: “Signing the Villeta project agreement is the first step in further expanding our renewable fertilizer portfolio in the Americas. Fertilizers produced at Villeta will become part of Yara’s new portfolio of Climate Options, including fertilizers based on renewable energy and carbon capture and storage. The project is landlocked, providing logistical advantages to some of the growing markets in Mercosur. We look forward to developing a strategic, long-term relationship with Atome.”