Atome (LSE:ATOM) — Investor Update

0:01 Good morning, ladies and gentlemen. Welcome to the ATOM Energy PLC Investor Presentation. Submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so, and these will be available via your investor meet company dashboard.

0:33 Before we begin, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to CEO, Olivier Musat. Good morning, sir. Good morning. Thank you very much. Appreciate it. Hi, everyone. I guess it's becoming almost a quarterly session, and it's been a very busy summer for ATOM. So I guess we'll come back to work. So ATOM, for those of of you who have dialed in who do not know us quite well yet, we are the only company listed on the London Stock Exchange, which is fully dedicated to a developing project into the green hydrogen ammonia, and green fertilizer sector.

1:20 And it's about addressing the market, the fertilizer market that exists today. It's about $200,000,000,000 a year, but addressing it in a climate positive way. Thanks to green hydrogen, we can make green ammonia. And with green ammonia, we can make green fertilizer. And this is really what ATOM, has built its business to be and is concentrating on. So I will, go through the, first slides very quickly as soon as my keyboard answers. So you would have the usual disclaimers, that you would have seen in a number of places. So what is ATOM doing? Alright. So we are actually today building, the largest green ammonia and fertilizer facility in Latin America, to start operations by 2025.

2:14 Why Latin America? It's it is where you have some of the world's cheapest power And the only way to make cheap green hydrogen, cheap green fertilizer is if you have very competitively priced power. And that power needs to be base load, I e, from hydroelectric sources. Because to make fertilizer, it's like a chemical process. You need to be running twenty four seven if you want to be efficient and most competitive. The advantage of having a project in Latin America and especially Paraguay, and we'll get into that, It's you are also you don't not only have some of the most competitively priced power in the world, green power in the world, you also have the world's largest market for fertilizers. Right? So Brazil is one of the world's breadbasket.

3:02 It is the single largest importer of fertilizers, and it's also where, you know, we get our coffee, bananas, orange juice from. So being able to produce something domestically and competing against imports from The UAE, from Russia, from Tunisia puts us into a very strong position. But the fact that we are producing a green product is makes us very attractive for markets in Europe. Some of you may know, that, it has now been officially announced, in the European directives that as of January 2026, the carbon border mechanisms that are being put in place will impose a tax on the import of fertilizers.

3:51 And to give you a sense, one ton of ammonia generates approximately two tons of carbon. Therefore, if you if you think or if you want to believe that by 2026, looking at the forward curve, the cost of carbon would be about a $100, It means, that you could actually have, if you have a green fertilizer product, a premium of anywhere between a 150 to $200 per ton of fertilizer you are producing. So this is really where our projects make a lot of sense by being very cheap, very competitively priced in a large market and having the upside on the other side. It's also very important for The UK, and some of you may have seen that this summer, CF fertilizers announced the closure of the last ammonia nitrate fertilizer unit in The UK, which was using natural gas.

4:45 Just a couple of years ago, The UK was producing domestically over a million ton a year of nitrates fertilizer. And all of that production is now shut down permanently because of the price of natural gas in The UK, which is being prioritized to power. So it puts in perspective how important it is, to do what we are doing. It's not only about supplying green fertilizers, but also fertilizers period in a world which is going to start running short of fertilizers. And in a world which is growing by a billion people every ten years. So our first project is now getting a lot more developed and advanced as we are going through front end engineering and design. And to give a sense, you know, using last year's average price of calcium aluminum nitrate, which is what we'll be producing, our first a 145 megawatt phase one VETA projects or what we call VETA in short, could actually produce return an unlevered return of about 29% and an annual revenue of $140,000,000.

5:53 Obviously, this is all assuming an average price of CAN, which was the average of last year, which was a higher. But it also shows you how resilient the project is and how much revenue this can produce on a yearly basis for a project which will last more than twenty five years. From a carbon point of view, it has the potential to displace nearly half a million ton of c o two, so over 13,000,000 ton over the lifetime of the project. But clearly, you know, ATOM is not just a one asset company. We have a pipeline of projects over 600 megawatt of pipeline, actually. But our first projects, so the ATOME and Iguazu, will take their power from the 14 gigawatt Itaipu Dam that we will show you later more in detail as we will show the presentations from James, our country CEO in Paraguay, as well as Terry who discusses the fertilizer sector.

6:53 So clearly, it's you know, there's there's an a strong team behind developing, the ATOM idea and putting this this idea into reality. You know, I think, obviously, Peter Levine, who is our chairman and largest shareholder, and the initiator of ATOM as we incubated it within molecular energy. So clearly, has the experience to work with public companies and and to deliver real value to shareholders. But also importantly, coming from the industrial sector has a very keen eye and and keeps a very strong culture of the company to be very mindful about cost. In the end, what we are doing is industrial, it's chemicals, it's a margins game. Even if we have some very competitive price of power, it's about chasing margin at every single step of the way.

7:45 My background, I started as an engineer in the power sector, then moved to oil and gas and financing. And for the past nine years, before ATOM, I actually used to be the chief investment officer of, the International Finance Corporation's, global energy team, and the IFC, is the investment arm of the World Bank. You also need people on the ground to deliver, which is where James Spaulding is absolutely key to our team. He is the boots on the ground of ATOM Paraguay, and he used to actually be the general director of the Itaipu Dam where we're getting our power from. And he served under six presidents and was also minister of finance and served on the board of the IDB and the World Bank. From the hydrogen expertise side, we are very fortunate that Mary Rose is part of our board. She used to be the general manager of the International Energy Agency's hydrogen unit, worked as well on the National Renewables Energy Lab in The US. So she's got more than thirty years experience working in the hydrogen sector.

8:52 And, of course, Terry Becken who joined us earlier this year, who comes from a thirty five year experience into the fertilizer sector, and he was on the board of two of the largest fertilizer companies in the world, you know, namely EuroChem and Yara. So our first project that I mentioned briefly earlier, Paraguay, it just gives you an idea of what is the where the project is. And the Vieta area, the reason we have chosen it is actually next to the Vieja Port, which is where all of the fertilizer companies import agri companies, sorry, import fertilizers and export the agri products. So it's really not only it's the best route to market, obviously, if we wanted to export internationally, but it's also where your clients are. And that's absolutely key. As I mentioned earlier, it's all about keeping your cost low. So you want to make sure that from an infrastructure point of view, you are staying staying very close to your market.

9:51 It's also just across one of Andes substation at Vieja, so we can take the power directly from the substation, again, you know, minimizing cost, and drawing water from the Paraguay River. I mean, clearly, it's not a lot of water. We we we we would be drawing less than 0.001 of the flow of the river. Again, makes is making us a very low impact project within the area. And how are we progressing? We've bought the land as we mentioned last year. We have signed a long term power purchase agreement with. We have commissioned ACOM as our owners engineer who is obviously leading a lot of the technical work on ATOM's behalf.

10:38 And we the help, we have appointed Kasale, which is one of the the oldest ammonia licensor in the world. It's a Swiss company with over a hundred years experience. And Orbas, which is a an experienced EPC contractor in the power sector having done a number of assets in Latin America as well. On the financing side, we have mandated the Inter American Development Bank, which is the Latin American equivalent of the World Bank, as well as Netexis as financial adviser with which we have launched now the process to fund the project through project finance and asset level investment. And as part of that, you have to obviously run a do market studies, which is what Nexon has been leading. And, of course, the environmental social impact assessment being led by Brazilian company, JGP, who has a long experience working, obviously, with finance and private equity houses when they asset ESIA, environmental social impact assessments of the real impact of the project on the community and on the environment.

11:52 So in the next slide, what we will actually get into is really the project itself, and that's kind of a world first of what the project will look like as Orbas and Cassale have put together and are nearing the end of front end engineering and design, and we are in the early discussions on the EPC side. And it will give you a flyover of what the facility looks like live, imagining it as it is on the site that we have now in Vieja where we have started clearing the land. So the sorry. I'm just going backwards a little bit. So thanks. So if we can start on this slide, the, the video of the website of the of the, sorry, the video of the asset.

12:39 Thank you. So in here, it basically imagine on the bottom. I'm trying to hit pause on this thing just for one second. So what you see here on the top left is these cables, which are coming straight from the, Vietta Substation from Ande as they go into the plant. And really imagine this is actually looking at the Vietta area and how, and how we are designing the plant. So, obviously, this is the view from the road. The power comes in into the first substation. And this large building that you are seeing over here is actually where we have the electrolyzer stacks, and we have a 110 megawatt of electrolyzers in five megawatt stacks.

13:25 So we only need about a 100 megawatt of electrolyzers, but we are oversizing the facility because clearly we need to future proof the assets. So keeping some extra capacity is the is the right thing to do and is the safe thing to do to ensure you can operate twenty four seven. So the bottom of this, you actually see mostly office and spares building. And if we advance the video, we will see it goes a little bit slowly.

14:01 So this is above the, site building. But if you look, ahead of you, basically, the blue tank and the red tank, this is where where the water treatment and the cooling water facility is. You have obviously cooling waters on the left. As I mentioned, you know, it's you have a chemical process running with the, ammonia and Haberbosch process, so you need to cool, to cool those. And in the blue tank is the demineralized water, which will feed the, electrolyzers. These white tanks that you are seeing, Langdon, actually, the hydrogen storage tanks, which gives us a couple of days of storage of hydrogen, as, to create redundancy within the system. So the water will come in into the building. And with this all of these stacks of these are five megawatts stacks of electrolyzer.

14:51 Obviously, the power comes in into the electrolyzer, water comes in, the electrolyzer separate the hydrogen and the oxygen. So whilst the oxygen is, either sold into the oxygen market or released into the water treatment stream, then what we have is the hydrogen will continue. In yellow, you are seeing the hydrogen compressors. And what you are seeing now is two streets. On the left side, the air separation unit where the nitrogen is separated from the air. You know, most of the air is made from nitrogen, so it's just a a simple, compression, system which separates the nitrogen from the air, and it mixes the the compressed hydrogen with the nitrogen into the ammonia synthesis plant, which will put together VN and VH to create NH three.

15:49 So this is what we call the Haber Bosch process. You know, this is, it will be a cassava unit. Then that, white tank you see on the right is where the ammonia, will go, And you will have a nitric acid plant, which will further concentrate, and the the n, with the h and obviously, come in and create the ammonium nitrate solution. What you see this square building is the granulation plant. So the ammonium nitrate solution will then be mixed with dolomite or limestone, which is pretty much calcium. So if I'm gonna go a little bit over here so at the bottom of the building, what you will see is actually where we will store the the rocks, you know, the dolomite and of the of the limestone and crush it into, let's say, powder. And it will go from this big building to the left on this conveyor belt, into the granulation unit and mix the ammonium nitrate solution with the, with the, dolomitrox, and become, after that, calcium ammonium nitrate, which is then sent back on the belt, and it will be stored in either in bulk or in what we call big bags, which are bags about a ton of fertilizers, which will then be distributed to the fertilizer

17:19 company. So you see the storage facility and, obviously, the trucks which will come out, every day. So we estimated about, 30 to 40 trucks, every day of fertilizer that will be produced. So this is, I mean, I'm I want to say, well, first in the sense that nobody has ever, you know, put this together in that particular way. We don't use any specific technology. We use existing alkaline electrolyzers. We use existing Haber Bosch processes. It's just the way that we are putting it together, which is making it quite novel. So if we can shut down, this presentation and and, obviously, why Paraguay? And, obviously, this is where the power, of, is coming from and also where the demand is. So we will move to the presentation from James Spaulding, which really gives an overview of Paraguay itself.

18:17 Paraguay is located in the heart of South America. We're a landlocked country bordered by Argentina, Brazil, and Bolivia. We are also a founding member of the Mercosur free trade zone, which incorporates Paraguay, Argentina, Brazil and Uruguay. And as a Mercosur member, we enjoy free trade and low taxes for our commerce within these countries. Paraguay's main exports are in the agricultural sector, with the fourth largest exporter soybean, but our grain production has increased and we're looking at about 10,000,000 tons per year. And we use Paraguay Parana Waterway. So Paraguay counts on Itaipu and Yacireta, the two very important hydroelectric dams.

19:06 Paraguay's electricity grid is 100% clean and green renewable energy. Itaipu Dam is 14,000 megawatts. It's the second largest dam in the world. And currently, Paraguay demands about 30% of its half from the current production. Paraguay at the same time is a country that's open to investment, both national and foreign. It's open to business and looks forward to trade, to commerce, both with its neighbors and with the world. We have received very good support from the current administration of the government, and as Paraguay recently held its national elections, we have a president-elect who will assume power on the August 15 for a five year term, and we have already seen his support in in our project.

19:59 Our current investment is focused on a 120 megawatt facility located in Vieja, which is about 30 kilometers South Of Asuncion. This land, which we've already purchased about 75 acres, is located very near to the Paraguay River, which is a major transit point for commerce coming in and out of Paraguay. The 120 MW is important to mention that this is firm base load 20 fourseven existing green and renewable power coming from the hydroelectric dams, so we have no need to reduce or modulate our production at this time.

20:43 So what what you heard was quite, you know, important, and and it's on on the way that we have long term stable power supply. You know, the 145 megawatt scale of a project, we will actually be using a 120 megawatts of that power. And and this represents just around 1% of the total capacity supply of the grid. As as I mentioned earlier, we are looking at a project which is going to be here for twenty five years plus. So that is quite key. And, also, what is the alignment long term alignment with the government? So at $31, per megawatt hour, it's, it generates over $30,000,000 per year to the government. So, clearly, this is not an insignificant source of income for Itaipu, the dam, and it's also a a regulated price. Like, there is no special deal. There is nothing that says, oh, you guys had a really good deal at some point.

21:44 We are going to change that. No. It's actually the official industrial price. And it's because Paraguay has power in excess that we're able to do that. But, obviously, from a development impact, we we are very key to a country which is the fourth largest exporter of soybean where most of the workforce, is in the agricultural sector. So if you can actually produce domestically fertilizer competitively, cheaper than what it is imported. You know? I mean, last year, the price of ammonia shot up to about $1,600 a ton. Now it has come down to around 400 to $500 a ton. Clearly, it's also a very good investment from the government's point of view to isolate themselves from macroeconomic shock and and remain competitive.

22:30 The last point I will I will add is on Paraguay itself. I mean, clearly, are overly focusing on Paraguay on this presentation because this is our project, which is going live. It's it's really that it's one of the best performing Latin countries in Latin America. It has just raised a ten year bond at double b plus and about a five point, I think, six seventy five coupon and making it extremely you know, showing the resilience of the economy and some of the cost of becoming invest investment grade, so triple d minus. So it's it's becoming a very in in interesting investment proposal for a number of funds looking into Latin America, especially as we are seeing that, you know, Chile hasn't proven to be quite stable. Argentina remains Argentina, a very difficult place to operate, and and the coming up and the elections coming up in Argentina are not going to simplify things.

23:30 And we are seeing, obviously, some some more stability out of Brazil, but Brazil also has a history of boom and bust. So Paraguay has really been an island of stability over over the past decades. So as I leave Paraguay, I will go into the fertilizer market, and we will watch, Terry's video, that goes into going to more detail about the state and the future of the fertilizer market.

24:01 The big challenge that the food industry is facing is really to produce more with less and in a sustainable way. So, it's really about agricultural efficiency. How you could grow better crop with with less input factors. Fertilizers, it's really about nutrient use efficiency. So you need better products, you need better fertilizers, but you also need better processes. So better processes and better products will bring more sustainable agriculture. With the need for more biomass to to be produced with less input factors, when, you know, where the input factors also bring more greenhouse gas emissions is not sustainable.

24:53 And with changing the processes like ATOM does, producing ammonia and calcium ammonium nitrate without having any greenhouse gas emissions is one requirement, is a needed requirement. At home, we talk with the food industry and whether it is the fruit and vegetable growers, the canola growers, they know that, you know, their brands for the products in the future will show what is the carbon footprint of this particular oil. When you could see that one oil or one banana has lower footprint than the other, the consumers will choose the more sustainable way. So, it's going to be a combination of demand pull from consumers, and of course, the regulators also need to do something, so we need to change regulations, so green sustainable initiatives that ATOM has will then have advantages to meet the shelves of the food shops as soon as possible.

26:03 Green calcium ammonium nitrate is has two characteristics. It's green, it's sustainable, it's produced in a sustainable way without having greenhouse gas emission. The other part of calcium ammonium nitrate is it's a more efficient fertilizer because when you have nitrate nitrogen instead of ammonium nitrogen, it can be absorbed directly by the plant because we are in the middle of the food basket in the world. Nitrogen fertilizer is the most important nutrient there is in agriculture in terms of ammonia tons, 120,000,000 tons consumed every year.

26:52 For calcium ammonium nitrate, which is more a specialty fertilizer used a lot for fruit and vegetables where quality also is important. Now, ammonia for fertilizers is obviously today the largest segment. We like to focus where agriculture is having potential, like in South America, like in Paraguay, Brazil, Argentina. Paraguay itself has a lot of new crops coming, a few of them here. You know, chia is a new super food that is being produced or grown sustainably in Paraguay, and we we think for us to have the first project to be robust, practical, and to support the farmer, and to support the food industry, is going to be a very practical good step to show that sustainable fertilizers, sustainable nitrogen can come, you know, and service that segment right away.

28:07 Alright. So if we go to the next slide. Right. Oh, I I control the slide. Forgot about this one. Alright. So from a sustainability impact, you know, clearly, we what we are doing is we are able to produce competitively against any import, and that's obviously quite key. You know, we have made a choice very early on that we didn't want to have to rely on subsidies whatsoever to to have a commercial project. Yes. We care about planet. We care about people. We also care about profit. But the reality of green fertilizers is, you know, you have the opportunity to decarbonize, you know, 2.6 gigaton per year of carbon. And we found it quite amazing that, yes, we all heard a lot about, sustainable aviation fuel, sustainable shipping, looking at decarbonizing the transport sector.

29:02 But no company has really looked at decarbonizing the agricultural sector. And and yet, you know, everybody in this call can decide whether or not they want to take a flight. We can't really decide whether or not, we want to eat bread, which is where the fertilizer market really is that key. It's, and from the green side, as you heard from Terry, we have clients, you know, the Nestle's, the Cargill's of this world who have made commitments on climate. And the lowest hanging fruit for all of them to reduce their carbon footprint is to go towards using green ammonia, green nitrates, green fertilizers. So this is why we think it's it's it's a real it it's it is really the market the most important market we can play a role in. Now but also, it's it's a market which is very similar to the energy market and is being highly disrupted, because actually 30%, of the fertilizers come from Russia, Belarus, Ukraine.

30:03 And everybody knows what's going on, in this place at the moment. Just, last weekend this weekend, China announced that it was restricting exports of fertilizer. So what we have is a market which needs to go green, but also needs to continue having constant supply, as it's a very fast growing market. So from, I I think our news flow, you know, from a mobility point of view, you know, we've always said for us it was a demonstration project, and it's a way at a small scale to get comfortable with how to import and start up, hydrogen projects. So we are still on track to have our electrolyzer delivered, by the end of this year.

30:49 On the Vieta project itself, front engineering and design, will be completed, at the end of this year as well. The the other side is still is the offtake agreement. So what you know, once we produce CAN, what are you going to do with it? And we are discussing with a number of of of large scale off takers that, you know, you would have seen in the news of, you know, who are the largest fertilizer companies, and who have expressed interest to actually buy the entire production of Vieita. So we are trying to see how we can negotiate the best partnership agreement into ensuring that we get the best absolute price for our products because it's a very unique project. We will be the first company to deliver green fertilizers at scale.

31:35 And which means that, you know, there will be final investment decision taken this quarter for VETA, and we are progressing fast discussions with the financiers, but also on the engineering procurement and commissioning, so the EPC contract as we speak. The we have obviously a couple of more projects in in the pipeline. So we announced earlier this year, our JV, with the Cavendish, group to create the National Ammonia Corporation in Costa Rica focused on Central America. And in Paraguay, we have, agreed with, Andy, the power producer, to have an allocation of the further 300 megawatt that we call Iguazu project phase two.

32:23 And we are now undergoing technical studies to mature this project. But, clearly, over the next few months, the absolute priority is delivering the Vieta FID when we have a project where we know what, you know, what we are producing at how much to whom, and who is going to be financing the project. So the, with that said, I think I'll move to the q and a side of the session. Olivier, that's great. And thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab that's situated on the top right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard.

33:16 Olivier, as you can see, we have received a number of questions throughout your presentation this morning. And thank you to all of those on the call for taking the time to submit their questions. But Olivier, if I may just hand back to you just to respond to those questions where it's appropriate to do so, and then I'll pick up from you at the end. Thank you. No. Thank you. And and I I guess I ever did too good of a job or not good enough because so far, we didn't have that many questions compared to last quarter. So I will go away, I guess, in the order we have received. So from James, what do the economics for the Vieta project look like with the current Europe TTF gas prices now around €30 a megawatt hour, which is multiple lowest than last year. Is it still competitive against conventional ammonia production without a subsidy green premium?

34:04 So, actually, it is. And and for a number of reasons for that, where what we have is obviously having a long term stable, power purchase agreement makes a big difference in how you can design your plant, how you can design your economics. And also remembering that what happened into Europe, and if you were to have a plant in Europe, what we've seen is gas gets prioritized towards the power sector, rather than the, fertilizer sector. And it's one, also one of the reason where we have seen a number of plants. I mentioned, earlier how CF Industries shut down its UK operations permanently. And BASF, which was one of the largest fertilizer producer, has also shut down permanently its its production in in Belgium, has seriously looked to shut down a couple in Germany.

34:59 And Romania, which used to be one of the largest ammonia producer in the region, I think only one fertilizer facility is running and a number of the others are being dismantled as we speak. So how competitive are we? Well, the reality is, yes, we are extremely competitive in our home market because if I am producing something in Europe, for example, because most of the fertilizer that are delivered into Brazil come from Europe and The Middle East, you have mechanically nearly a $100 a ton advantage of the transport of that fertilizer from the East to the West. So it also puts us into a very strong position to know that we have a project which will be producing for the next twenty five years minimum without any interruption unlike what's going on today in Europe.

35:55 I think there's another question, from Michael. Are there any future projects in the pipeline? What do you consider the greatest risks? So I think any future projects in the pipeline so I mentioned phase two in Paraguay. I mentioned, obviously, in Central America with with National Ammonia Corporation. Are we looking into other projects? Yes. I think that's one of the advantage of being the only publicly listed company, in that we we actually have quite a lot of incoming from teams which have which are developing assets and need strong partners. The reality is our focus today is really VETA. We aren't going to entertain proactively anything else until we get VETA to an FID.

36:40 And then we will have indeed the first entrant advantage that to have successfully delivered a project when a number of other projects, which have been discussed for years, are still in the early, early stages. What do you consider to be the greatest risk? Actually, it's execution. Right? We don't have technical risk. We are very comfortable on the financing risk because we are our projects as green fertilizer project are exactly on in the middle of a fairway of the IDB, of the World Bank, of the green infrastructure funds, which are green projects with clear development impact, which also produce a product what is needed today. So it's all about execution, execution, execution. And this is really the biggest risk that we are going to have, but we are doing everything that we can and we should, to mitigate these risks.

37:35 What are the plans for transportation of fertilizers? Are you planning to own any trucks? If so, will they be net zero? So it's it's a good question, and you will have seen, in Terry's video, and you can access the full video on the website, when we show actually the scope one, two, three footprint of of what we produce. So once we would have produced CAN out of the gate, we are actually, we are at zero. Like, it's it's very clear. And then you will add the scope two and the scope three of the transport to get it to a destination, let's say, for example, in Europe, whether it's the shipping cost or the trucking cost. So our, we will be shipping in two ways. Right? We will be using the barges to go, throughout to Brazil, to the Atlantic, to Argentina.

38:22 We will also be trucking into, Brazil where we have a very, very clear logistical advantage compared to any imports from the sea. And it's not the vocation of ATOM to go and to run trucks and to run mobility. But, clearly, you know, we are we are we are looking at it very actively. And as you know, our shareholder major shareholder, Peter, has created this this company called Greenhouse Capital, which is actively looking at transportation. But we see also that the the cost of trucking ammonia of trucks running on a hydrogen is still relatively high, but we see it as a very, very strong market. You know, we you will not be able to easily electrify emerging markets, And we think that trucks and heavy goods transport, whether it's trucks, whether it's parts, whether it's ships, are actually very, very strong clients for hydrogen, for the trucking side, and for the shipping side, ammonia. And you've seen, you know, companies like like Intercontinental pushing very, very hard on ammonia to decarbonize shipping. You've seen WindGD.

39:32 You've seen what's happened and as well with man who now have large scale engines in the final testing stages. So, the ultimate goal is to get to net zero, but not at any cost. Right? And we know that this is slowly getting there. We see it a market a real market for green transportation by 2028, maybe 2030 most likely. But, you know, we really wanted to concentrate off the market of today, the $200,000,000,000 a year market that is fertilizer. There's a question from Michael. Again, is the dolomite sourced locally? So, yes, I think this is one of the great advantage of being in Paraguay, whether it's dolomite, whether it's limestone, we are able to source it locally at very competitive rates, and very easy to get it to where we are. So that's that's another tick in the box of why we chose CAN as the best green product.

40:26 You have more complex fertilizers that the plant design allows us to do, but, you know, CAN and the competitive advantage and the fact that we can source everything locally at very competitive rates makes the project even stronger. The questions from Gal, which is who are the off takers of your fertilizers? So they will be your usual suspects, right, the large fertilizer companies. So, you know, you will look at you know, you if you look at, Yara, Nitron, you know, Ameropa, all of these large names which trade fertilizers. But, you know, we're also having discussions with the end users as well. Right? And so we don't want to say too much more. You know, are we having discussion with, let's say, you know, the the the large users like the Nestle's, like the Dreyfus, like the ATMs? Of course, we are. We would be stupid not to.

41:21 And watch this space is the best thing I can say. A question from Mike. Have you selected your electrolyzer suppliers? So we went a few months ago to the market of electrolyzers across The Americas, Europe, and Asia. So, yes, we have our final three. It will be alkaline electrolyzers, and it will be using companies who have a track record of delivering large systems of alkaline electrolyzers. And, David, can you talk about how you could recreate your business model elsewhere in the world? What factor do you need to see in these host countries? Well, it's a bit well, it's a bit complicated, I guess. So you have to look at a number of things. It's number one, obviously, power is important.

42:11 Logistics is equally important. Infrastructure is important where you don't want in this early stages of of this growing hydrogen ammonia fertilizer economy. You have to you have to pick the places where you have the least amount of risks possible. So, yes, there is massive potential in some of the desert areas. But if you have to build your power and you have to build your transmission line and you have to build your you have to build your ports, for example, to export, you are adding risk on risk on risk. So it's all about trying to find the places where there is available power, a government policy and environment that is incentivized you to work with them, but also you can hack off at every single risk so you concentrate on the smallest area possible so that you can deliver very quickly. Because we really believe that the biggest premium in our industry will be the people who can deliver before 2030.

43:07 And the only way to deliver before 2030 is if you have to do if you have very focused projects that don't have to build extensive transmission line, extensive amount of power, or look at too much storage, all of these things which will add on and add on and add on. So, hopefully, that gives you an insight on on how we are looking at. A question from Sam, what is the likely offtake price range that we are willing to accept for a green can for a long term agreement? That's part of a secret sauce, so we're not we're not going to be disclosing that. Clearly, if you look at the reports published by our brokers, you know, whether it's FinCap, Liberum, or SP, or even the studies done by Longspirit will give you a sense of what is the, you know, what is the range of prices which will work.

44:00 A question for Miguel, on VETA. Questions keep popping up. You mentioned the past final investment decision in September, October. Now it's q four. Am I being too picky, or is there some slippage in the FID, right, date? So, yes, you're absolutely right. You know, we we really thought that, by the end of September, October, we would be, getting into the FID decision. Can we still make it for October? It's possible, but, honestly, it will not be optimal. Right? We it's all about making sure that we get the absolute best price for the company at all of the aspects, which means an EPC contract at the right price with the right terms, an offtake contract at the right price at the right term, the financing structure in the same way.

44:46 So, yes, I can say, you know, we've we've slipped by a few weeks. I'm sorry. We really are trying our best, to make it. And and if anything, you know, we keep being told that we are going faster than anybody else in the market. And, actually, when we see a lot of projects being put on hold because they don't have, they haven't made the same choice as we have, you know, we still feel pretty confident that, that we are doing our job right, what we have. So, Mohammed, when is the EPC project kickoff? So that's going to happen again this quarter. We are really in the middle of the discussions, of the EPC. So it's, it's, it's going to take a little bit longer. Clearly, us is when we get to FID is going to be the EPC project kickoff.

45:37 I think a question from Patricia. For EU market purposes, there has to be additional renewable energy for EU. How does the ATOM look at this? So, actually, the additionality rule, does not apply if you have a 100% green grid. It's, so these are there's a lot of, let's say, nuances into red two and red three. So, clearly, we we also are choosing places where we are limiting some of these risks. But, again, you know, we don't need, let's say, EU carbon credits to be to make our projects bankable, and that's clearly very, very important for us. But on the tape on the theme of additionality, we are in one of the, what's the name, exemption cases.

46:25 And so there's been a question from Steve and from James on the Iceland project. So I think we've mentioned that a couple of times that, you know, the Iceland project has taken a lot more time than what we thought it would. It's a project, which originally was designed to produce ammonia into Europe and in the long time, towards the shipping sector. So we are still, working hard to find a way to make it work with the, in the shipping side. And we've mentioned earlier this summer partnership with Samheri, which is one of the largest shipping and fishing company in Iceland. And and it's all about making sure that we can find a way to make this economically sensible in in a market, which is the shipping market, which has gone a little bit slower than expected.

47:12 We've also noted and we've discussed publicly that the power market has been highly disrupted by the Ukrainian war. And the largest offtaker of power actually in the country in Iceland has been the green aluminum sector. So what we have seen is a price of power which has gone up. And in when the price of power goes up and also the demand side, and I'm talking about ammonia for shipping, is taking longer to materialize, it's taking more time. So do we have a deadline on Iceland? I cannot say that we have. We're still progressing, and we're still trying to find a way to make this work. But as I mentioned earlier, for us, we really are seeing, and it's very, very clear that ammonia towards fertilizer is the market of today, the market we need to concentrate on, and the Vieta project is absolutely on top of our mind.

48:03 And a question from Kevin, are there any issues with delivery from the facility into the market? How close is the facility to the ex existing road infrastructure? So if you look at if you look at the the plan on the presentation, what you would see is that and if you look indeed on the video where Jim is talking and he shows the Vieta substation, we are literally across the road from the substation. Right? Well, we are on the road, and we are just basically, we only need to pull a 300 meter line from the substation into the transformers to the electrolysis. And as far as the ports, we are anywhere between two to, I think, five or six kilometers to the four main ports of, of Vieja. So we are extremely close, to all of the infrastructure.

48:57 And finally, a question with Mohammed. Do you consider OCI as off taker? Well, OCI has been a very strong exporter of fertilizer, into Latin America. You know, have we had discussions with OCI? Yes. But OCI is also doing great strides in Morocco to develop its own green ammonia projects. So it's it's part of all of the discussions that we have been having as far as the offtakers go. And OCI, obviously, it's too big of a name to ignore. But, also, you know, they are working on their own projects, which are very interesting projects in North Africa. And I think I've managed to answer all of the questions. So Olivia, absolutely. And thank you very much indeed for being so generous of your time then addressing all of those questions that came in from investors this morning.

49:46 And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. Just for you to review to then add any additional responses where it's appropriate to do so, and we'll publish all those responses out on the platform. But, Olivier, perhaps before just really looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, If I could please just ask you for a few closing comments to wrap up with, that'd be great. I think so. The closing comments, are very much, you know, watch this space. We continue to go faster, and despite being a couple of weeks late on the FID, we continue to go faster than what, you know, we the deadlines that we had put in our own, in our own minds. So we are very fortunate to have very strong partners, and I'm mentioning IDB, and I'm mentioning Netexis and Nexon and JJP and ACOM who has been doing an excellent job for us.

50:41 So I really want to thank them and the entire team of ATOM. Clearly, you know, the, the markets are what they are, you know, but, you know, for us, it's very clear that as investors ourselves into ATOM, we are extremely aligned. The entire team is fully aligned with all of the shareholders who are on the call today. So trust us that we will do whatever we can, and we'll continue to do everything to make sure that we are able to be the first one to deliver green fertilizers in in a record time. Olivier, that's great. And thank you once again for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations?

51:29 This may take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of ATOM Energy PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.