ATOME Energy PLC (AIM:ATOM) said its 75%-owned Icelandic subsidiary, Green Fuel, has arranged the supply of renewable energy for its planned large-scale green ammonia facility and its first offtake agreement.
Building on progress in its Paraguay operations since its IPO in December 2021, the AIM-listed company said it has signed agreements with two power companies in Iceland to secure renewable energy.
A term sheet has been signed for up to 40MW of geothermal and hydroelectric power from 2026 with HS Orka, and a letter of intent signed with ON Power for up to 20MW of power from the same sources from 2027.
The green ammonia facility will be “one of the earliest large-scale green ammonia projects in Europe at the time of its start-up targeted by the end of 2026”, ATOME said.
Some of the ammonia from the plant is to be used to power fishing vessels, under a memo of understanding with fishing company Samherji, where the two companies have agreed to collaborate on the development of amnia-powered fishing vessels.
ATOME working committee has been established with both parties, making early progress on realising the zero-emission opportunities in the sector.
As 100% of Iceland’s energy is produced from renewable sources, the company said it is the “prime location” for green hydrogen and ammonia production to decarbonise the country’s shipping sector and other means of transport.
With the Icelandic maritime sector accounting for around 30% of the country’s economic output and a significant contributor to the country’s emissions, the industry is facing new regulation under the EU’s Green Deal and Fit for 55 programmes, aiming to deliver a 55% reduction in carbon emissions by 2030, with Iceland also qualifying for EU grants and subsidies.
Green Fuel is already collaborating on such export opportunities, including under the MoU signed in 2021 with the Port of Groningen in the Netherlands.
Maritime transport represents approximately 4% (144 million tonnes p.a.) of th U’s CO2 emissions. By 2050, green ammonia is projected to make up 25% of all global marine fuel.
Olivier Mussat, chief executive of ATOME, said the company had expanded its near-term pipeline of projects to over 500MW.
“Today’s announcement is a reflection of the work done over the past couple of years in putting in place the building blocks required to generate value for shareholders through Green Fuel in Iceland.”
