British company Atome PLC has finalized the Final Investment Decision (FID) for the construction of a low-carbon green fertilizer plant in Villeta, with an estimated investment of US$ 665 million. The project, considered the first industrial-scale green fertilizer venture worldwide to reach this milestone, is contingent on the approval of a preferential electricity tariff by the National Electricity Administration (ANDE), which is expected to guarantee a fixed price of US$ 30 per megawatt-hour (MWh) over 15 years.
Chief of Staff Javier Giménez defended the tariff agreement, stating that it does not constitute a subsidy, since the proposed tariff is above the production cost, estimated at around US$ 28/MWh. Giménez emphasized that the tariff is lower than what is charged to other industrial sectors, such as cryptocurrency mining, which pays approximately US$ 42/MWh, but noted that ANDE already operates with different tariff brackets depending on the consumer segment.
ANDE President Félix Sosa stated that there is no pressure from the Executive branch to sign the contract and that the state-owned utility is carefully evaluating the financial conditions to protect its finances. He explained that the difference between the tariff requested by Atome and the average tariff currently charged to large consumers—such as artificial-intelligence companies, which pay around US$ 44/MWh—represents a challenge that must be offset.
One of the alternatives under analysis to offset this gap is the use of social funds from Itaipú Binacional, which could be allocated to electrical infrastructure investments to strengthen the national grid. Giménez explained that the compensation could reach approximately US$ 100 million in works, allowing ANDE to maintain its financial health while supporting the plant's installation.
Beyond the tariff aspects, the government emphasizes the economic benefits of the project, which include replacing fertilizer imports, generating jobs, and driving logistics activity during the construction period, estimated at five years. Giménez stressed that it is preferable to sell electricity to an industry that will invest around US$ 1 billion in the country rather than continuing to supply surplus energy to Brazil at symbolic prices, around US$ 10/MWh, as provided for in the Itaipú treaty.
The current contract between ANDE and Atome, signed in 2022, provides for an approximate tariff of US$ 33/MWh, adjusted according to exchange rate fluctuations. The company is now seeking a fixed and predictable tariff for the next 15 years, which is essential to ensure the financial viability of the venture. Sosa stated that President Santiago Peña will not allow the signing of a contract that harms ANDE or the public.
Regarding Atome PLC, its key executives include Peter Levine, the company's chairman, who has a background tied to President Energy PLC, a British company involved in oil exploration in the Paraguayan Chaco during Horacio Cartes's administration. Levine faced financial and environmental problems in operations in Argentina, including an oil spill. Among Atome's leadership are also two Paraguayans with political and administrative ties to the Cartes era, such as James Spalding, former general director of Itaipú Binacional and former finance minister, and Juan Pablo Nogués Peña, general project manager, with experience consulting for international organizations and advising Paraguayan ministries.
The future of the green fertilizer plant therefore depends on the signing of the power supply contract by ANDE, which is conditional on approval of the preferential tariff and the definition of compensation mechanisms to maintain the state-owned utility's financial balance. If no agreement is reached, the plant's installation could be compromised, and the energy allocated to the project could be redirected to other consumers, such as the cryptocurrency sector.