The European Investment Bank, through its development branch EIB Global, has announced financing of up to USD 95 million to support the construction of ATOME’s Villeta Green Hydrogen Fertiliser Plant in Paraguay. This project represents a major step forward for clean industrial production in the region, as it will produce low-carbon nitrogen fertilisers using green hydrogen powered entirely by Paraguay’s renewable electricity system.
With a planned capacity of around 260,000 tonnes of calcium ammonium nitrate per year, the plant is set to become one of the first large-scale green hydrogen fertiliser facilities outside the European Union and is expected to be the world’s largest once operations begin.
The project is an important part of the Global Gateway strategy, which aims to deepen cooperation between the European Union and Latin America. It also supports ongoing progress in the EU–Mercosur agenda by strengthening sustainable industrial and agricultural development in a region that relies heavily on fertiliser imports.
The plant’s location near the Parana–Paraguay waterway and close to key agricultural regions in Brazil and Argentina gives it a strong competitive advantage. By replacing fossil-fuel-based hydrogen with green hydrogen, the project will significantly cut emissions in a sector that is traditionally difficult to decarbonise. It will also improve regional food security, enhance the stability of fertiliser supplies and reduce exposure to global market disruptions.
Financing for the project will follow a non-recourse, project-finance structure, developed in cooperation with several international financial institutions including IFC, IDB Invest, FMO and the Green Climate Fund. The facility will receive renewable electricity through a long-term power purchase agreement with Paraguay’s national utility, ANDE. During construction and operation, the Villeta plant is expected to create more than 5,000 direct and indirect jobs, contributing to local economic growth.
EIB Vice-President Ioannis Tsakiris said the investment reflects the bank’s commitment to advancing clean technologies globally. He noted that supporting one of Latin America’s most advanced green hydrogen projects aligns with the EIB’s mission to drive sustainable innovation and support resilient development across the Mercosur region.
ATOME PLC’s CEO, Olivier Mussat, highlighted the importance of the partnership and emphasized that the Villeta plant will enable large-scale fertiliser production without fossil fuel dependence. He described the project as essential for long-term food security and agricultural supply chain resilience, noting that the support from EIB and other financial partners demonstrates the strong commercial potential of green fertiliser.
EU Ambassador to Paraguay Katja Afheldt added that this Global Gateway investment reinforces the EU’s commitment to Paraguay’s sustainable development. She stated that the project strengthens economic diversification and positions Paraguay as a regional leader in green hydrogen technologies.
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