Atome plc (AIM: ATOM), the green ammonia and fertiliser development company, has issued a detailed Paraguay update following a change of government and the reappointment of Félix Sosa as President of ANDE, Paraguay's national power company. The company firmly rejected suggestions from Mr Sosa that it had failed to meet its contractual obligations under the 2022 Power Purchase Agreement, calling the characterisation inconsistent with years of joint technical work. Atome also clarified that it has notified Paraguay of an investment dispute under the UK-Paraguay Bilateral Investment Treaty but has not filed a formal arbitration claim, with a mandatory consultation period currently under way.

Key Points

  • Atome plc (AIM: ATOM) is a green ammonia and low-emissions fertiliser developer focused on its Villeta Project in Paraguay
  • Atome has rejected ANDE President Félix Sosa's claims that the company breached contractual obligations under the 2022 Power Purchase Agreement
  • The Villeta Project envisages a US$665 million investment and estimated annual production capacity of 260,000 tonnes of low-emissions fertiliser
  • Investors should watch whether the mandatory consultation period under the UK-Paraguay Bilateral Investment Treaty produces an amicable resolution before formal arbitration is filed

Atome Confirms No Exposure to Ueno Bank Failure as Paraguay's Government Changes

Atome noted reports of the Central Bank of Paraguay's intervention in Ueno Bank and the subsequent change of the country's president. The company stated clearly that it has had no banking or financial relationships with Ueno Bank and is not affected by that localised banking failure. Atome said it welcomes the new administration and views the transition as an opportunity for continued constructive engagement on resolving the ongoing power purchase issue central to advancing the Villeta Project.

Atome Disputes ANDE's Contractual Breach Claims Over 2022 Power Purchase Agreement

Following statements made by newly reappointed ANDE President Félix Sosa, Atome Paraguay S.A.E. issued a formal press statement rejecting the suggestion that the company failed to meet its obligations under the 2022 Power Purchase Agreement. The company stated it has worked in good faith since 2021 to adapt electricity supply terms to requirements set by international lenders including the IFC, a member of the World Bank Group, and IDB Invest. Atome argued that submitting a transparent request for contractual amendments through official channels does not in itself constitute a breach of contractual obligations.

Bilateral Investment Treaty Notification Filed Against Paraguay, Not ANDE — No Arbitration Claim Lodged

The announcement states that on 17 September 2026, Atome notified the Republic of Paraguay — not ANDE — of an investment dispute and its intention to pursue arbitration under the UK-Paraguay Bilateral Investment Treaty. The company emphasised that this notification triggered a mandatory consultation period aimed at reaching an amicable settlement, and that no formal arbitration claim has been filed. The disclosed disputes concern actions Atome attributes to the Paraguayan State, including the repeal of presidential decrees that had provided certainty over electricity supply.

Villeta Project Scale and Atome's Commitment to Negotiated Resolution

Atome's Villeta Project in Paraguay is described in the announcement as envisaging a US$665 million investment with an estimated annual production capacity of 260,000 tonnes of low-emissions fertiliser. The company stated the project aims to create thousands of jobs and contribute to Paraguay's food security. Atome confirmed it remains open to negotiating a new, mutually agreed Power Purchase Agreement that would be suitable for securing international financing, and that its previously announced position from 5 November 2026 remains unchanged. Investors may be watching whether direct dialogue with the new administration accelerates a resolution.