Atome Energy PLC on Tuesday said that its Icelandic subsidiary, Green Fuel ehf, has signed a non-binding term sheet with HS Orka to supply power.

Atome Energy is a green hydrogen and ammonia production company focused on large-scale projects in Latin America and Europe.

Under the term sheet, Green Fuel will supply up to 40 megawatts of geothermal and hydroelectric power to HS Orka, a producer of renewable energy in Iceland. Both parties are expected to enter a binding power purchase agreement solidifying these terms before the year’s end.

Green Fuel has also signed a letter of intent with ON Power for the supply of up to 20 megawatts of renewable power, expected to be available from 2027.

Atome told investors on Tuesday that Green Fuel’s green ammonia facility is set to be one of the earliest large-scale green ammonia projects in Europe at the time of its start-up, targeted by the end of 2026.

Atome Energy shares were trading 0.8% higher at 94.25 pence each in London on Tuesday morning.

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