DNV advises lenders on financial close of USD 650 million green hydrogen fertilizer project in Paraguay

DNV acted as lender technical advisor for the Villeta green hydrogen-based fertilizer project in Paraguay, supporting a group of international lenders through technical due diligence and contributing to the project reaching financial close. The project is being developed by ATOME. The USD 650 million project is one of the world's first industrial-scale green fertilizer plants to be financed in a non recourse basis, a standalone, asset-backed financing structure where lenders look only to the project itself for repayment.

The facility is expected to produce around 260,000 tonnes per year of calcium ammonium nitrate (CAN) fertilizer. It will use over 100 MW of electrolysis capacity, powered by Paraguay's abundant renewable hydropower, to produce green hydrogen and convert it to ammonia and then to CAN fertilizer. DNV's scope covered the entire value chain, including renewable electricity sourcing, hydrogen production, ammonia conversion, and fertilizer synthesis. The work included technical due diligence, risks identification, design and construction review, and assurance of technical feasibility aligned with international best practices.
 

Brice Le Gallo, DNV
Brice Le Gallo, Vice President and Regional Director for Southern Europe, MEA and LATAM, Energy Systems at DNV

"The ATOME Villeta project shows that industrial-scale green hydrogen and fertilizer production can be both technically robust and financially viable under a project finance scheme," said Brice Le Gallo, Vice President and Regional Director for Southern Europe, MEA and LATAM, Energy Systems at DNV. "Our team provided lenders with an independent, evidence-based assessment, giving them confidence to commit capital to one of the world's most advanced green hydrogen projects in an emerging market."
 
The lenders include the European Investment Bank (EIB), IDB Invest, the International Finance Corporation (IFC), and FMO, the Dutch entrepreneurial development bank. DNV worked alongside co-advisors including A&O Shearman, FERRERE, Argus Media, and ARCADIS.
 
"The Villeta project shows that well-structured green hydrogen and derivative projects can become bankable and attract major international lenders in the short term" said Dr. Ing. Guillermo Matute, Regional Hydrogen Team Leader at DNV. In this line, Dr. Alberto Coralli, DNV’s project manager in this assignment, added that "we expect similar projects in the power-to-X area to follow the same path."
 
The project aligns with Paraguay's strategy to leverage its renewable hydropower for higher-value industries. It will contribute to reduce dependence on fossil-based fertilizers, create local jobs, and lower lifecycle emissions in the agricultural supply chain. 

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