By Anthony O. Goriainoff Atome Energy said Monday that Baker Hughes Co. has become a shareholder with a 6.6% interest in the company after it subscribed for 2.4 million pounds ($3 million) for a total of 2.5 million new ordinary shares at 95 pence a share.
The London-listed producer of green hydrogen and ammonia said the proceeds from the subscription will be used for general working capital, and that it was expanding its Villeta green hydrogen and ammonia project in Paraguay to include green-fertilizer production. “The strategic investment of Baker Hughes in our company is an example of the growing recognition of industry players in the potential of our industrial scale green projects across the energy and fertilizer sectors and is a vote of confidence in Atome’s management and business,” it said. The company said it was engaged in discussions with undisclosed international market players and that they have indicated serious offtake interest including its enire projected prodution from Villeta. It added that it was also in discussions for an additional 300 megawatts of immediately-available renewable power to its Paraguay business. “The move to produce green fertiliser provides Atome with the potential opportunity to deliver substantial, stable long-term returns to shareholders, compelling growth and income,” Chief Executive Olivier Mussat said. Shares at 0749 GMT were up 4 pence, or 4.3%, at 98 pence. Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
