Villeta

The British company and Paraguay’s state power utility disagree over energy pricing for a fertiliser plant in Villeta. Termination is due to take effect at the end of 2026; September 30 was a deadline for an addendum or bank guarantee.

Raúl Valdez, president of the Paraguayan Chamber of Oilseed and Cereal Processors (CAPPRO), said the electricity grid is constraining industrial projects in Villeta. He called for diversified power generation, modernized regulation and planning for the next 30 years of industrialization. In his assessment, the current energy model is nearing its limits, and demand-based tariffs could boost the sector’s competitiveness.

Decrees signed by Santiago Peña set hydrogen tariffs of US$30 to US$32 per MWh, close to the US$30 requested by Atome. The company’s manager, Juan Pablo Nogués Peña, is the president’s cousin and represented the Ministry of Industry on Conacyt; the documents examined do not prove that he influenced the decisions.

Paraguay's state electricity utility, ANDE, has set September 30, 2026, as the deadline for Atome to define its operations in Villeta and presented a $2.34 billion budget for 2027. The proposal includes an 11% reduction in overall resources and allocates $956 million to energy purchases, primarily from Itaipu.

Former ANDE president Félix Sosa has challenged Atome’s position in the dispute over its $665 million Villeta project. He says the power contract signed in 2022 contains neither the later 2026 decrees nor a fixed preferential electricity price, and that any change would have required an addendum signed by both parties. Sosa therefore sees no contractual basis for a claim against ANDE. A separate question remains, however, over whether Atome can pursue claims against Paraguay under the UK–Paraguay investment treaty.

ATOME notified Paraguay of its intention to take to arbitration a $665 million dispute over its green-fertilizer project in Villa Elisa after negotiations with ANDE broke down over a 15-year contract and a $30/MWh tariff, while Sitrande cited the Imperium alternative to ABC Color at $70/MWh and the government argued that generation costs could reach $50/MWh in 2043; backed by commitments from institutions including IDB Invest, IFC, the European Investment Bank and the Green Climate Fund, as well as a 10-year contract with Yara, the project could lead to an arbitration claim after 90 days of consultations, although the losses estimated at hundreds of millions of dollars come from an independent assessment and are not a formal claim.

The Paraguay River continues to fall at most major ports, while the Paraná records isolated rises attributed to discharges and precipitation in the upper basin; forecasts point to a dramatic change associated with the consolidation of El Niño, with more frequent and intense rainfall and possible flash rises and flooding if the projections are confirmed.

ANDE has halted negotiations with ATOME to supply power to the green hydrogen and fertilizer plant in Villeta, deeming it unsustainable to maintain the proposed fixed tariff for 15 years, while Sitrande challenges the state utility’s reorganization and warns of risks to the electricity sector.

The level of the Paraguay River continues to fall, reaching 1.36m in Asunción and putting commercial navigation, a vital activity for the country's economy, on alert.

ATOME is advancing the development of a 300 MWp solar plant project in Villeta, Paraguay, after securing financial support for its feasibility study.

ANDE is conducting studies to define a new technical, unique, and transparent tariff scheme for both industries, based on voltage level, and residences, aiming for the company's financial sustainability.

IPS plans to refinance short-term liabilities to free about 105 billion guaranis a month for medicines. The Economy Ministry and a Senate committee currently oppose bonds and emergency legislation, respectively.

President Santiago Peña has appointed Miguel Báez Reyes as the head of Paraguay's state electricity utility ANDE, replacing Félix Sosa. The government states the move is intended to unblock investments, but unions and the opposition link it to pressure for a preferential tariff contract with the company Atome.

British company Atome is seeking an agreement with Paraguay's state electricity utility ANDE to resolve the impasse over the energy contract and unlock its fertilizer plant in Villeta, a project financed and supported by international institutions that promises to generate thousands of jobs.

Trading in shares of Atome PLC was suspended on the London Stock Exchange due to a delay in publishing its financial statements, caused by ongoing negotiations with Paraguay's state electricity utility, ANDE, over the power contract for its green fertilizer project in Villeta.

An agreement to supply electricity to Atome's fertilizer plant in Villeta at a preferential rate of $30 per MWh could result in a $750 million loss for Paraguay and ANDE over 15 years.

Atome PLC has finalized a $665 million investment to build a green fertilizer plant in Villeta, Paraguay, contingent upon the approval of a preferential electricity tariff by ANDE to ensure the project's financial viability.