Atome Energy & ANDE Sign MoU to Supply Renewable Energy

Source: 11/5/2021, Location: Not categorized

ATOME Energy PLC ("ATOME"), the green hydrogen and ammonia production company, an offshoot of President Energy PLC, due to join the London Stock Exchange later this year, is pleased to announce the signing of a Memorandum of Understanding ("MOU") with ANDE, the national electric power company of Paraguay, for the supply of up to 250 megawatts of power for its production facility.

The facility will be uniquely situated at the future economic zone within the Technology Park of Itaipu, adjacent to the Itaipu Binacional dam jointly owned by Paraguay and Brazil, the second largest hydroelectric dam by output in the world.

The MOU is a precursor to a full form definitive Power Purchase Agreement, which is planned for next year in order to facilitate the commencement of production in late 2023 to early 2024.

The facility's location, which is in cooperation with the Paraguayan arm of Itaipu and in close proximity to the power source, as well as being adjacent to the borders of Argentina and Brazil, is a significant commercial and logistical advantage, combined as it is with available land, water access and transport links.

ATOME places Paraguay as its primary focus of investment for hydrogen and ammonia in the Americas. The Company will concentrate on the development of its project in Paraguay without distraction and in an expeditious way.

ATOME will initially concentrate on servicing the domestic market and will promote the Paraguayan decarbonisation strategy set out by the Government of Paraguay, creating local employment and stimulating the economy.

ATOME, through its parent President Energy, has for 10 years been a leading investor in Paraguay with over US$100 million invested to date, with another US$20 million of investment projected to be made in 2022, outside ATOME's project.

Alongside Peter Levine, who is well known in Paraguay, the Chairman of both President Energy and ATOME, as well as their largest shareholder, the companies also have as their second largest shareholder Trafigura, the worldwide commodity and logistics business which owns the Puma brand of fuel distribution and filling stations in Paraguay.

James Spalding, the former Paraguay General Director of Itaipu and now Head of ATOME Paraguay, commented as follows:

"We are very pleased with the signing of this MOU with the President of ANDE as it represents a new concrete step forward. With the framework in place, we can continue with ATOME's plan to install a cutting-edge green hydrogen and ammonia production plant in cooperation with the Technological Park of Itaipu Binacional. On behalf of the ATOME team, I would like to reaffirm our commitment to make strong and swift progress to support Paraguay's decarbonisation strategy and economic development, based on clean and renewable energy supplied by Itaipu."

Felix Sosa, President of ANDE, stated as follows:

"Paraguay's energy must be used as the main engine of the country's economic and social development and for this it is necessary that the industrial sector is further developed. We look with great enthusiasm at the coming of international investments to Paraguay even more when they bet on innovative processes focused on sustainable development."

Gulf Oil and Gas
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