Hy24, Atome Agree on USD 115m Green Fertiliser Deal in Paraguay
Green hydrogen is produced when water is split into hydrogen and oxygen using renewable electricity.
The Itaipu hydroelectric dam, on the border of Brazil and Paraguay, will supply the power needed for this project.
Hy24, a Paris-based hydrogen private equity asset manager, has agreed to invest up to USD 115 million in Atome Plc's green fertiliser project in Paraguay.
Hy24 will be the main equity investor in this project, which aims to produce fertiliser using green hydrogen.
Green hydrogen is produced when water is split into hydrogen and oxygen using renewable electricity from the Itaipu hydroelectric dam, located on the Paraná River, on the border of Brazil and Paraguay. Later, the hydrogen is mixed with nitrogen to produce zero-carbon ammonia, an important ingredient for green fertiliser.
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According to the companies, the final investment decision will be announced soon, and full financial closing is expected before mid-2025.
The total estimated cost of the project is USD 625 million, with 60% coming from loans and the rest from equity investment. Meanwhile, Atome is all prepared for the project to bear fruit by securing 145 MW of renewable power from Itaipu and 43 hectares of land in a tax-free zone for the construction of the plant.
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