The Atome project, which aims to produce hydrogen in Paraguay, could cost public coffers over $1.6 billion in 15 years, according to engineer Ricardo Canese, former vice minister of Mines and Energy. The core criticism centers on the subsidized rate of $30 per MWh that the British multinational seeks to contract with ANDE, Paraguay's state electricity utility.
Canese calculates that, considering operational costs, transmission, and the 8% profitability required by ANDE, the real technical price should be $137 per MWh. The difference would amount to an annual subsidy of $107 million, totaling $1.6 billion over the contract period. "This amounts to theft from the state, paid by taxpayers through higher taxes or tariffs," he stated.
The expert also challenges the "green hydrogen" label applied to the project. Since the energy will come from ANDE's grid, Paraguay will export less hydropower, forcing neighboring countries to burn more fossil fuels to compensate. Data from the Latin American and Caribbean Energy Organization (OLACDE) shows Brazil and Argentina already produce over 170,000 GWh annually from non-renewable sources.
Another criticized aspect is the labor market impact. Canese notes electrolysis plants like Atome's generate only 0.6 jobs per MW, while other Paraguayan industries create 685 positions per MW. He also dismissed claims the project will boost domestic fertilizer production, arguing importing natural gas would be more technically and economically viable.
The former Mercosur parliamentarian further warned of Paraguay’s rapidly growing energy demand, which surged 14.4% annually between 2022 and 2025. If this trend continues, the country could lose its energy sovereignty as early as 2028, forcing fossil fuel imports.