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Fertilizer International 525 Mar-Apr 2025

18 March 2025

Hy24 plans $115 million Villeta project investment

PARAGUAY

Hy24 plans $115 million Villeta project investment

ATOME has secured a non-binding agreement from Hy24 to invest $100-115 million in its flagship Villeta green fertiliser project in Paraguay.

The 260,000 t/a capacity Villeta project is the first of its kind in the Mercosur region (Fertilizer International 524, p31). The proposed investment would make Hy24 the lead equity partner in the low-carbon calcium ammonium nitrate (CAN) project.

The source of the investment is Hy24’s Clean Hydrogen Infrastructure Fund, a world-leading asset manager for green hydrogen projects.

ATOME said the announcement was a “significant milestone towards the financial investment decision (FID)” in the Villeta project, with this decision currently expected during the first half of 2025. The plan is for Hy24 to make an advance equity payment of up to $5 million to ATOME between now and the FID, subject to predefined milestones being reached.

“This would mark Hy24’s first direct investment into South America, further complimenting the rest of its portfolio throughout the world,” ATOME said in a statement, adding that: “The project benefits from leading industrial partners including engineering contractor Casale and offtake partner Yara International.”

Under the current timetable, a definite investment agreement between ATOME and Hy24 is expected during the second quarter of 2025. This is subject to pre-conditions, however, these including satisfactory completion of due diligence and the successful execution of binding offtake, EPC and lending agreements.

ATOME’s Chair Peter Levine (centre) and Hy24 CEO Pierre-Etienne Franc (right) meet with Paraguay’s President Santiago Peña (left).
PHOTO: ATOME

Olivier Mussat, ATOME’s CEO, said: “We welcome Hy24, a worldwide leader in hydrogen private equity finance, as an anchor equity investor and are excited to bring the project to full financial close in the first half of this year. The Hy24 team has demonstrated deep industry expertise that will accelerate our project development.”

Pierre-Etienne Franc, Hy24’s CEO and cofounder, said: “This marks Hy24’s first step toward a potential direct investment in the region through our Clean H2 Infra Fund. ATO-ME’s Villeta project stands as one of South America’s most advanced green fertiliser initiatives, driven by Paraguay’s exceptional renewable resources, a highly experienced team that has effectively advanced the project’s development, and strong offtake potential within the Mercosur region.”

ATOME will maintain day-to-day management and operational responsibility for the Villeta project.

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