ATOME plc Leading the Green Revolution: Innovating in Hydrogen and Fertilisers
Key Ideas
  • ATOME plc, an international player in green hydrogen and fertiliser sectors, is strategically positioned to drive decarbonisation in agriculture and food industries.
  • The Yara agreement is a significant milestone, solidifying ATOME's project viability and progress towards full financing and investment decision by 2024.
  • Utilizing Paraguay's hydroelectric power, ATOME plans to produce low-carbon CAN fertiliser, expecting to achieve a 90% reduction in carbon emissions and secure premium pricing in global markets.
  • SP Angel projects strong financial performance for ATOME, with a forecasted annual EBITDA of $70 million by 2027, leading to a reiterated BUY rating and a target price of 200p per share.
ATOME plc, listed on LON:ATOM, is making significant strides in the green hydrogen and fertiliser sectors, positioning itself as a key player in decarbonising agriculture and food industries globally. The recent Yara agreement, where Yara will take all output from ATOME's green fertiliser project in Paraguay, signifies a crucial step towards full financing and a Final Investment Decision (FID) by the end of 2024. Leveraging Paraguay's hydroelectric power, ATOME plans to produce low-carbon CAN fertiliser with a 90% reduction in carbon emissions, aiming for premium pricing in the market. Financially, SP Angel forecasts a robust performance for ATOME, expecting an annual EBITDA of $70 million from the Phase 1 project in Villeta by the latter half of 2027. With a BUY rating and a target share price of 200p, ATOME shows promising growth potential. The company's strategic vision extends to negotiating for renewable electricity for a larger Phase 2 development in Paraguay and exploring opportunities in Costa Rica. Analyst David Mirzai from SP Angel expresses confidence in ATOME's future, anticipating near-term valuation catalysts in the second half of 2024 that could mitigate market uncertainties. Overall, ATOME plc emerges as a trailblazer in sustainable agriculture and energy solutions, attracting investors seeking exposure to the expanding green technology market.
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