Source - LSE Regulatory
RNS Number : 2348V
04 April 2023

4 April 2023




Iceland Update


Term Sheet and Letter of Intent signed for up to 60MW of power


ATOME Energy (AIM: ATOM), the only international green hydrogen and ammonia production company on the London Stock Exchange, with current large-scale projects in Latin America and Europe, as well as hydrogen mobility projects, announces material developments on its Icelandic business.



  • Term sheet signed with HS Orka, a leading producer of renewable energy in Iceland for up to 40MW of power
  • Letter of Intent signed with ON Power, another power provider, for up to 20MW of power
  • Memorandum of Understanding ("MoU") signed with Samherji, one of Iceland's largest fishing companies, for the decarbonisation of their marine fleet
  • Green Fuel's facility expected to be operating by end 2026 and to be one of the first large-scale green ammonia projects in Europe
  • Domestic and international offtake opportunities


ATOME is pleased to announce that its 75% owned Icelandic subsidiary, Green Fuel ehf ("Green Fuel"), has entered into a non-binding term sheet with HS Orka, a leading producer of renewable energy in Iceland, for the supply of up to 40MW from geothermal and hydroelectric power with the intention for both parties to enter a binding Power Purchase Agreement ("PPA"), subject to conditions, prior to year-end 2023. The power is due to be delivered for the start of Green Fuel's commercial operation, scheduled in 2026.


In addition to the 40MW from HS Orka, Green Fuel has also signed a Letter of Intent with ON Power, another company generating power from the same sources in the country, for the supply of up to 20MW of renewable power which is expected to be available from 2027.


Green Fuel's green ammonia facility will 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.



Iceland is a prime location for green hydrogen and ammonia production, through its 100% green electricity grid from baseload geothermal and hydro sources, with a strong focus on decarbonising its domestic shipping and transport sectors. Green Fuel's project is in full alignment with the country's domestic needs.


Green Fuel's green products have the potential to significantly decarbonise the maritime sector as a substitute for marine fuel. To this end, Green Fuel has signed a Memorandum of Understanding ("MoU") with Samherji, one of the largest fishing companies in Iceland, to collaborate on the development of ammonia-powered fishing vessels. A working committee has been established with both parties making early progress on realising the zero-emission opportunities in the sector.


In Iceland, the maritime sector accounts for around 30% of the country's GDP and is a significant contributor to the country's emissions. Maritime transport represents approximately 4% (144 million tonnes p.a.) of the European Union's CO2 emissions. By 2050, green ammonia is projected to make up 25% of all global marine fuel. 


One of the principal drivers in the expected uptake of alternative fuels for shipping (including green ammonia) has been the strengthening of emission regulations from the International Maritime Organisation ("IMO") and the EU. The IMO regulations cover energy efficiency, carbon intensity and sulphur emissions while the EU's Green Deal and Fit for 55 programmes have brought in controls for greenhouse gas emissions from all shipping travelling within and to and from EU ports. The overall aim of the Fit for 55 programme is to deliver a 55% reduction in carbon emissions by 2030. It is proposed under the Green Deal that shipping be included in the EU's Emissions Trading Scheme from as early as 2024, providing the financial framework for shipping companies to be able to commit to long term alternative fuel offtake agreements.


As one the largest producers and exporters of green aluminium, Iceland already has valuable experience in leveraging its green electricity for growing industries. Green Fuel's project location also presents strong export opportunities to the EU as demand grows for the decarbonisation of the EU's energy-intensive industrial sectors. Green Fuel is collaborating on such export opportunities, including under the MoU signed in 2021 with the Port of Groningen, in the Netherlands. Furthermore, as a member of the European Economic Area (EEA), Iceland qualifies for a number of EU grants and subsidies such as the EU €95.5 billion Horizon Europe Research and Innovation funding programme.


Olivier Mussat, CEO of ATOME Energy, commented: "Since our IPO in December 2021, we have made significant progress in Paraguay, and with our move into Central America through our newly created business, the National Ammonia Corporation, we have expanded our near-term pipeline of projects to over 500MW+. Today's announcement is a reflection of the work done over the past couple of years in putting in place the building blocks required to generate value for shareholders through Green Fuel in Iceland."


Siggi Olason, CEO of Green Fuel ehf, added: "We are delighted to have achieved this important milestone on our journey towards providing sustainable, carbon-free fuel for the shipping industry. It has been a pleasure working with HS Orka and Samherji, who share our commitment to tackling the climate challenge with determination. We believe that international and regional regulations will be key in driving the adoption of green ammonia as a fuel to reduce carbon and sulphur emissions from shipping. Here in Iceland, we are proud to lead this change, and Green Fuel is well positioned to meet the expected demand as these regulations come into effect."


Tómas Már Sigurðsson, CEO HS Orka: "Climate change is high on our agenda, and we recognise the importance of this project for the decarbonisation of the shipping industry and the increasing demand for green ammonia to be used in fuels. We look forward to working alongside Green Fuel to ensure a sustainable future for Iceland."


Thorsteinn Már Baldvinsson, CEO Samherji: "Since our company's founding, we've always been dedicated to using the latest technology and sustainable practices to produce the highest quality seafood while minimizing waste and reducing our environmental impact. From fully utilizing every part of the fish we catch to reducing our oil consumption, we've always strived to be responsible stewards of our planet's resources. And now, as we take big steps in the energy transition, we're proud to continue this tradition and operate in harmony with nature, ensuring a sustainable future for generations to come."


For more information, please visit or contact:


Nikita Levine, Investor Relations

+44 (0) 113 337 2210

Beaumont Cornish (Nominated Adviser)
Roland Cornish, Michael Cornish

+44 (0) 20 7628 3396

Liberum (Joint Broker)
Scott Mathieson, Kane Collings

+44 (0) 20 3100 2000

SP Angel (Joint Broker)
Richard Hail, Caroline Rowe

+44 (0) 20 3490 0470

finnCap (Joint Broker)
Christopher Raggett, George Dollemore

+44 (0) 20 7220 0500


Tavistock (Financial PR and IR)
Simon Hudson, Rebecca Hislaire, Charles Baister

+44 (0) 20 7920 3150


The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.



About Atome

Atome Energy PLC is an AIM listed company targeting the decarbonisation of hard-to-abate industries, such as agriculture and shipping, through the production of green commodities such as hydrogen, ammonia and fertilisers. Atome has a global portfolio of over 500-megawatt of projects in Paraguay, Iceland and Central America, utilising existing and excess renewable power to fast-track the production of these essential products that enable both energy and food security around the world.


Upon listing on AIM, Atome was awarded the Green Economy Mark reflecting its contribution to transitioning to a society centred around decarbonised commodities. The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Trafigura, one of the world's leading commodity and logistics company, and Schroders, a leading fund manager.




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