Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Atome inks crucial deal in plans for Costa Rica project

(Sharecast News) - Green fertiliser developer Atome reported significant advancements through its Central America subsidiary National Ammonia Corporation (NAC) on Wednesday, as it worked towards a pivotal green fertiliser initiative in Costa Rica. The AIM-traded firm said NAC had initiated a framework collaboration agreement with Instituto Costarricense de Electricidad (ICE), the state power entity of Costa Rica, aimed at evaluating the feasibility of providing renewable energy for a green ammonia and fertiliser venture.

It said the agreement was a critical step towards securing 100%-renewable baseload electricity for Costa Rica's maiden large-scale industrial green ammonia and fertiliser undertaking.

The board said the project, akin in magnitude to Atome's Villeta project, stood to capitalise on key insights garnered, reinforcing the company's stature as a preeminent developer of large-scale green fertiliser projects across Latin America.

Under the agreement, NAC, jointly owned by Atome and Cavendish, would collaborate with ICE on feasibility studies, design considerations, and economic assessments.

The studies, expected to conclude in the second half of 2024, were set to pave the way for an agreement on renewable power provision for the project.

"Within a year since the creation of NAC, thanks to the significant progress on our Villeta project and our strong local team led by Cavendish SA, we have been able to establish an excellent working relationship with ICE with the aim of building Costa Rica's first green fertiliser facility," said chief executive officer Olivier Mussat.

"There is a substantial local market for the fertiliser we intend to produce as well as being strategically located to access global markets.

"Costa Rica is viewed as a prime investment destination with significant existing foreign investors such as Intel, Microsoft, and Amazon."

Mussat said that, while the 145MW Villeta phase one project remained the company;s near-term priority, the progress made in Costa Rica was "significant news" for Atome.

"Beyond adding another flagship project to our pipeline, it is a demonstration of Atome's business plan and its growing reputation as a world leader in green fertiliser.

"It also shows that Atome's own developed technical and commercial IP is able to be replicated on a cost-effective basis elsewhere giving us a significant edge in speed of mobilisation, costs and efficacy."

At 1206 GMT, shares in Atome were up 11.13% at 58.35p.

Reporting by Josh White for Sharecast.com.

Share this article

Related Sharecast Articles

Easyjet suspends flights to Israel until October
(Sharecast News) - Budget carrier easyJet on Tuesday said it had suspended flights to Tel Aviv until October 27 after Iran's missile and drone attack against Israel on Saturday night.
Berenberg stays at 'buy' on Yellow Cake on tight supplies and supply risk
(Sharecast News) - Analysts at Berenberg stood by their 'buy' recommendation for shares of Yellow Cake, the uranium oxide concentrate holding company, following a fireside chat with its boss, Andre Liebenberg.
Bank of America upbeat despite profits slide
(Sharecast News) - Bank of America said it had seen a "strong" first quarter on Tuesday, despite posting a sharp fall in profits.
Berenberg lowers target price on Kainos
(Sharecast News) - Analysts at Berenberg lowered their target price on software company Kainos from 1,315.0p to 1,260.0p on Tuesday following the group's full-year trading update on 15 April.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.