By Brazil Stock Guide – Yara International ASA (YAR.OL), one of the world’s largest fertilizer producers, signed a long-term agreement with Atome Energy Plc (ATOM.L) to purchase the entire output of a new green hydrogen-based fertilizer plant in Paraguay.
The contract, valid for at least ten years, covers production at a facility to be built in Villeta, near Asunción, with estimated investment of $630 million. Construction is expected to begin in the fourth quarter of 2025, with distribution aimed at the Mercosur bloc, Globo Rural reported.
The project is designed to produce up to 260,000 metric tons of calcium ammonium nitrate (CAN) per year. Powered exclusively by renewable hydroelectric energy, the facility will use green hydrogen generated by electrolysis as feedstock, significantly lowering its carbon footprint compared with traditional fertilizer production.
Yara said the supply of low-emission CAN will expand its sustainable product portfolio and strengthen its ability to meet growing demand in agriculture for climate-friendly inputs. The company already markets fertilizers with reduced carbon intensity, but the Paraguayan partnership marks a new stage in scaling its green line of products.