A green hydrogen fertiliser project, being developed in Paraguay by Atome, is to receive up to $95 million in financial backing from the European Investment Bank’s development arm, EIB Global.
Atome, a UK-listed developer of international green fertiliser projects, is establishing the 145MW Villeta Green Hydrogen Fertiliser facility which is set to produce 260 000 tonnes per year of low carbon calcium ammonium nitrate when it is completed during 2028 at total cost of $625 million. It is said that the project will be one of the first industrial-scale green hydrogen fertiliser plants outside the European Union, while also becoming the largest such dedicated facility in the world.
The facility is being developed close to Paraguy’s Parana-Paraguy waterway, and is also close to major agricultural hubs in Brazil and Argentina. Atome will use 100% baseload renewable hydroelectric power from the Itaipu dam, a hydroelectric plant on the Parana River border between Paraguay and Brazil, to produce green hydrogen, which is then combined with nitrogen to create zero-carbon ammonia and converted into green fertiliser.
Atome says that the Itaipu dam produces so much power that Paraguay only uses 30% of its 50% share of power generation. With this surplus, Paraguay has become the world’s largest exporter of renewable energy, having sent US$1.3 billion worth of electricity to Brazil in 2020. With plentiful renewable power remaining in Paraguay the country has the potential to produce some of the cheapest green fertiliser in the world.
It is estimated that the project will displace up to 12.5 million tonnes of carbon dioxide over its life, equivalent to removing 29 million barrels of oil. Its backers say that the facility is “positioned to become one of the most competitive sources of fertiliser in the region.”
The EIB said that: "By replacing fossil‑based hydrogen with green hydrogen, [the project] will significantly displace emissions in a hard‑to‑abate sector while contributing to food security and supply stability for regional farmers. The project will also diversify supply sources and strengthen the resilience of fertiliser markets to geopolitical disruptions. "
Olivier Mussat, Atome CEO said that: “Our Villeta plant enables industrial-scale fertiliser production free from fossil fuel dependence — a critical advance for global food security and the long-term profitability of agricultural supply chains. Together with the financial coalition we have built, [the] EIB's backing proves that green fertiliser is not just environmentally essential, but a compelling and sustainable business opportunity.”
Argentina, Brazil, Paraguay, and Uruguay are a major food producing region: products from this region are found in supermarkets in the UK and Europe, from Argentinian beef to Brazilian coffee and Paraguayan sugarcane. Paraguay itself is the world’s largest exporter of organic sugar, the third-largest soy exporter, and eighth-largest beef exporter.
While significant volumes of fertiliser are needed to maintain crop yields and grow these products, there is limited domestic fertiliser production. The region currently imports approximately 30 million tonnes of fertiliser per year, 95% of its demand, making it the world’s largest nitrogen fertiliser import market.
The new facility will operate under a long-term power purchase agreement with Paraguay’s state-owned utility Ande. The project is expected to provide more than 5000 new direct and indirect jobs throughout its construction and operation.
The EIB said that its financing will be provided under a project-finance, non-recourse structure in partnership with international financial institutions including the IFC, IDB Invest and the Green Climate Fund. The project comes under an initiative called Global Gateway, which is the EU’s strategy to promote: “smart clean and secure connections in the digital, energy and transport sector, while strengthening health, education, and research systems worldwide.”
During April 2025 Casale, a leading engineering and construction firm signed a $465 million Engineering, Procurement, and Construction (EPC) contract with Atome to develop the project.
Further reading:
- Air Products and Yara to work on low-emissions ammonia projects
- Green hydrogen made with offshore wind to help reduce refinery emissions
- Green hydrogen: 11 projects get big funding boost
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