Hy24 Invests $115 Million in Atome’s Green Fertiliser Project in Paraguay

Hy24, a Paris-based private equity asset manager that focuses on hydrogen, has committed up to $115 million to the green fertiliser project of Atome Plc in Paraguay. The financing will support the production of green hydrogen fertiliser from renewable power. Power to the project will come from electricity from the Itaipu hydroelectric dam on the Paraná River running along the border of Brazil and Paraguay. 

Project Details:-

The project is valued at $625 million, with 60% funded through loans and the remaining through equity investment. Hy24 will be the significant equity investor, backing Atome in its attempt to produce sustainable fertilisers with zero-carbon ammonia. The process is through the separation of water into hydrogen and oxygen using renewable energy. The hydrogen is then drawn out and blended with nitrogen to form ammonia, which is a major ingredient in fertilisers.

Atome has signed 145 MW of clean power from Itaipu dam and bought 43 hectares of land in a tax-free zone for plant construction. The investment decision is forthcoming, and financial closure is sought before mid-2025.

Impact and Significance:-

This project is part of the global trend of reducing carbon emissions in the fertiliser industry using green hydrogen. Shifting to green fertiliser production can reduce the consumption of fossil fuels by the agricultural industry and reduce greenhouse gas emissions. Paraguay's location near renewable energy sources, particularly hydroelectric power, makes it a strategic location for such projects.

Hy24's investment in Atome's project is an indication of growing interest in green hydrogen and its application in industrial processes. The project will be pushing the world towards greener energy solutions, cementing Paraguay's position as a hub for sustainable development in Latin America.

Conclusion:-

With the commitments in place and key infrastructure on board, Atome's green fertiliser project is moving towards its final phase of approval. The project represents a significant achievement in sustainable agriculture and energy transformation, further establishing the role of green hydrogen in reducing carbon traces. The financial close is expected before mid-2025, paving the path for a green method of producing fertilisers.

Source & Credits:-
Article information based on reports from Divulgação and industry updates.