Casale signs contract for green fertilizer plant in Villeta, Paraguay

The Villeta project, with its flagship project in Paraguay, will produce 260 000 tpy of zero-carbon fertilizer using 100% renewable baseload power, advancing decarbonisation of agriculture and food value chains in the Mercosur region. Once constructed, the Villeta Project will service a developed and ready market in the largest food-producing region in the world, meeting critical demand for low-carbon fertilizers from the agriculture and food sectors.

Olivier Mussat, CEO of ATOME, stated: “ATOME is delighted to announce the signing of our EPC contract with Casale, on time and on track to our project schedule. This underscores our ability to deliver final agreements and marks another milestone achieved as we advance to reach final investment decision (FID) for the Villeta Project towards the end of 1H25.”

“ATOME is addressing existing and projected demand for greener alternatives to fossil-fuel-produced fertilizer. Our Villeta Project will be our pathfinder as we continue executing on our wider pipeline of projects to build the leading green fertilizer development platform.”

Federico Zardi, CEO of Casale, also commented: “We at Casale are proud to be an integral part of ATOME’s green solid fertilizer Villeta project in Paraguay. For over a decade, Casale has been advancing the development of CO2 emissions-reduction technologies in fertilizer production. Through these technological advancements, we are delivering an extremely optimised design at Villeta, Paraguay, setting a precedent for sustainable fertilizer production at costs that are competitive with, or even lower than, conventional 'grey' fertilizers, paving the way to a sustainable agricultural future.”

The EPC contract, a fixed-price lump-sum agreement conditional upon the FID, embodies the commitment of both companies to ensure quality project execution. This arrangement ensures that production will commence within 38 months following the FID, aligning with ATOME’s timeline for the project start-up and the initiation of green fertilizer sales projected for 2028. The ongoing project finance discussions are well-aligned for an FID by mid-2025, with construction anticipated to start in the summer.

The Villeta site, Paraguay, benefits from a 145 MW renewable power purchase agreement and is situated in a tax-free zone, enhancing both sustainability and economic advantages. With a total estimated cost of US$625 million, the project involves a strategic collaboration with industry leaders such as Yara, Hy24, AECOM, Natixis, IDB Invest, and ANDE.

The engagement of Casale, a Swiss-based provider of ammonia and fertilizer technologies and specialist in engineering and construction, aligns with ATOME’s strategy to partner with technical experts to develop green fertilizer. Both ATOME and Casale are aligned in their vision, objectives, culture, and collaborative relationship, ensuring a unified approach to achieving a sustainable agricultural future.

Read the article online at: https://www.worldfertilizer.com/environment/07042025/casale-signs-contract-for-green-fertilizer-plant-in-villeta-paraguay/