UK Company Signs Big Green Fertilizer Deal with Norway

In 2022, Sri Lanka's attempt to ban synthetic fertilizers in favor of organic alternatives led to significant agricultural challenges, highlighting the difficulties of transitioning to sustainable farming practices. Olivier Mussat, CEO of UK-listed ATOME, emphasized the urgency of developing green synthetic fertilizers, noting that emissions from fertilizers surpass those from aviation and shipping combined. A 2023 University of Cambridge study revealed that nearly half of the world's crops rely on synthetic fertilizers, underscoring the critical need to address fertilizer emissions to meet global net-zero targets by 2050. ATOME is advancing its efforts by establishing a green fertilizer plant in Villeta, Paraguay, with Yara committing to purchase all future production. Mussat explained that the plant's location was strategically chosen to ensure a reliable power supply necessary for the energy-intensive process of producing green fertilizers. The goal is to create a cost-competitive product that can be produced locally, reducing reliance on expensive fertilizer imports in Latin America, a major food-producing region. With the plant's engineering design completed and a final investment decision expected later this year, ATOME aims to commence production by 2027. Analysts project an annual EBITDA of $70 million from the first year, with potential growth to $190 million from its project pipeline. However, the broader challenge remains: achieving significant decarbonization in the fertilizer industry before the 2050 deadline appears increasingly daunting.