Operations Update

RNS Number : 3500F

ATOME Energy PLC

21 March 2022

 

For immediate release

21 March 2022

ATOME ENERGY PLC

("ATOME" or the "Company")

Operations Update

First order of electrolyser

ATOME Energy (AIM: ATOM), the international company focused on green hydrogen and ammonia production, sales and marketing with current projects in Europe and South America, provides an update on its operations.

Highlights

• ATOME's Mobility Division orders its first 1MW electrolyser from the UK hydrogen and technology company CPH2, based like ATOME in Yorkshire, UK, for its Paraguay transport business to be ready to commence green hydrogen production in Q1 2023
• ATOME and CPH2 have also signed non-binding Letters of Intent:
  • C onfirming the parties' mutual intentions to collaborate in respect of potential further orders of electrolyser units for ATOME; and
  • Agreeing to the investigation and discussion of a potential joint venture for the future production of electrolysers in country to serve the Latin American market using CPH2's technology and knowho
•   ATOME expects to make further orders in due course
• Mobility's facility will be based in or near the capital Asuncion utilising renewable power
• Planned to be the first commercial production of green hydrogen for transport in Paraguay
• Memoranda of Understanding signed with potential in-country transport off-takers
• Significant traction now also being achieved on ATOME's large-scale hydrogen and ammonia production projects with future announcements in this regard to be made as appropriate

ATOME Mobility

ATOME's Mobility division is pleased to announce its first order of a 1MW Electrolyser for its Paraguay transport business. It is anticipated that further orders by ATOME Mobility will follow in due course.

The "plug and play" equipment has been ordered from the UK hydrogen and technology company CPH2 a company, like ATOME, headquartered in Yorkshire in the UK. The electrolyser is capable of producing 450 kg per day of high purity green hydrogen together with some 3,500 kg per day of medical grade oxygen.

The electrolyser has been specifically chosen by ATOME after a lengthy procurement process because of its uptime, efficiency, ease of transport, assembly and scalability. In this regard, ATOME has been advised technically by AECOM, the US based mutli-national Fortune 500 infrastructure consultancy.

The purchase is able to be funded from ATOME's own resources. 

The unit will be based within the region of Asunción, the capital of Paraguay. Production is planned to commence before the end of Q1 2023, making on current information, ATOME the first commercial producer of green hydrogen for transport in Paraguay.

This is a major signal of ATOME's commitment to support the drive by the President and Government of Paraguay to decarbonise transport in the country which has been given extra emphasis due to the sky-rocketing costs of fossil fuels. This transition will be materially enhanced when ATOME's significant large-scale projects in the country of some 300MW+ come on stream, currently projected from 2024 onwards.

The conditions in Paraguay are uniquely suitable for ATOME's Mobility business in that:

• All power in Paraguay comes from renewable sources, principally Itaipu, the second largest hydroelectric dam by volume in the world
• Paraguay has no refineries or oil and gas production and expensively imports all its fuel in finished form by river barge over 1,000 km from the River Plate
• With no railways, transport of goods and commodities is exclusively conducted over long distances by heavy good diesel vehicles or by barge
• The Government is dedicated to decarbonise transport and the fiscal conditions are advantageous for the green economy
• Hydrogen is the only present solution for powering long distance road freight and buses
• Many international companies move their goods by road and there is increasing demand by them and their shareholders to find a decarbonised solution
• The country imports medical grade oxygen of the quality which the CPH2 electrolyser produces as a by-product to the hydrogen manufacturing, and which will be commercialised as an added value income source.

ATOME is further pleased to report that in parallel it is in advanced discussions with potential off-takers of the Company's production, further details of which will be announced in due course.

Together, with the first order made by ATOME, the Company and CPH2 have also signed non-binding Letters of Intent:

• Confirming the parties' mutual intentions to collaborate in respect of potential further orders of electrolyser units for ATOME; and
• Investigation and discussion of a potential joint venture for the future production of electrolysers in country to serve the Latin American market using CPH2's technology and knowhow

ATOME sees significant potential in CPH2 technology and is pleased to progress discussions with them on a number of aspects including the South American market which ATOME views of significant potential.

Large scale hydrogen and ammonia production

In parallel with Mobility, significant traction and material progress is now being achieved on ATOME's large scale green ammonia and hydrogen projects with further announcements in this regard anticipated to be made as appropriate during the current half year.

Olivier Mussat, CEO of ATOME, commented:

"This is the first key step in ATOME Mobility's development in Paraguay, near the capital Asunción, where the demand for green transport is the highest. We have spent significant time evaluating various electrolyser options with the technical support of the global engineering firm AECOM.

"After a thorough due diligence, partnering with CPH2 for the supply of their 1MW electrolyser which is being manufactured in the UK, made perfect commercial and operational sense for our own project. Their technology has significant advantage inter alia on scalability and the ability to be deployed quickly. We have likewise been impressed by the expertise and transparency of the CPH2 management.

"This concrete investment will see green hydrogen production commence in Paraguay early 2023 representing the start of the decarbonisation of transport in this progressive and forward looking South American country. We are excited by this partnership of two British companies fully aligned strategically, with the support of the UK Government, as we lead the way for green hydrogen mobility in Latin America."

Jon Duffy, CEO of CPH2, commented:

"We very much look forward to working with the ATOME team in delivering the first green hydrogen for transport in Paraguay and to an ongoing partnership in the South America region."

For more information, please visit https://www.atomeplc.com or contact:

ATOME ENERGY PLC	[phone]
Nikita Levine, Investor Relations	[e-mail]
Beaumont Cornish (Nominated Adviser)	[phone]
Roland Cornish, Michael Cornish
SP Angel (Joint Broker) Richard Hail, Caroline Rowe finnCap (Joint Broker)	[phone] [phone]
Christopher Raggett, Tim Harper
Tavistock (Financial PR and IR)	[phone]
Simon Hudson, Rebecca Hislaire, Charles Baister	a [e-mail]

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. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.

Notes to Editors

ATOME

ATOME Energy Plc is an AIM listed company targeting green hydrogen and ammonia production with up to 350-megawatt projects in Paraguay and Iceland, through its subsidiaries ATOME Paraguay, which is wholly owned, and Green Fuel ehf, in which ATOME Energy holds a 75 per cent interest, respectively.

ATOME has commenced operational planning, sourcing and negotiations with green electricity suppliers, equipment providers and offtake partners, including signed memoranda of understanding and cooperation agreements in place with key parties including national power companies, to use electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay. Both sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.

ATOME has a further Mobility Project, initially in Paraguay, which is planned to produce green hydrogen for transport in 2023

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.

CPH2

CPH2 is the holding company of Clean Power Hydrogen Group Limited ("Clean Power") which has almost a decade of dedicated research and product development experience. The experience has resulted in the creation of simple, safe and sustainable technology which is designed to deliver a modular solution to the hydrogen production market in a cost effective, scalable, reliable and long-lasting manner. CPH2 is listed on the AIM market and trades under the ticker LON:CPH2.

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