Source - Alliance News

Atome Energy PLC on Monday announced its expansion into premium green fertiliser production, while saying that the US’s Baker Hughes Co will become a 6.6% shareholder.

The Leeds, England-based producer and marketer of green hydrogen and ammonia said Houston-based oil field services firm Baker Hughes has subscribed for 2.5 million new Atome shares at 95 pence per share, investing £2.4 million.

Shares in Atome were up 8.5% to 102.003p in London at midday on Monday.

Baker Hughes has been granted a right of first offer to supply its turbomachinery equipment, such as compressor technology, pumps and valves, to Atome.

Chair Peter Levine said: ‘The strategic investment of Baker Hughes in our company is an example of the growing recognition of industry players in the potential of our industrial scale green projects across the energy and fertiliser sectors and is a vote of confidence in Atome’s management and business.’

Atome also said it is extending the Villeta project to introduce and supply a premium value green fertiliser to the market in 2025. The company said it is expanding its plans for the 120 megawatt Villeta project in Paraguay to produce green fertiliser, specifically calcium ammonium nitrate.

Atome expects the facility to produce 250,000 tons per year of CAN per year. The fertiliser produced will be sold under the Atome brand.

The company noted that whilst adding the CAN plant to the hydrogen and ammonia facility will cause costs to rise, it thinks the strategic significance and rise in income, volume, and shareholders returns are worthg the cost.

Atome has said it is in discussion for an additional 300 megawatts of renewable power to its Paraguay business.

Looking forward, Chief Executive Officer Olivier Mussat said: ‘With key elements for Villeta already in place, and no changes to our project timelines, the move to produce green fertiliser provides Atome with the potential opportunity to deliver substantial, stable long-term returns to shareholders, compelling growth and income.’

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Related Charts

Atome PLC (ATOM)

-1.00p (-1.82%)
delayed 15:57PM