According to green hydrogen and production company ATOME Energy, its Paraguay-based Villeta green fertilizer project could generate half a million carbon credits annually.
Over the span of 25 years, the Villeta project holds the potential to yield 12 million credits, which is equivalent to counterbalancing the yearly emissions of 2.7 million passenger cars on the streets.
Carbon credits can be obtained by businesses that produce carbon emissions, such as oil and gas companies. These credits allow them to compensate for their emissions and have become a significant source of income for companies like electric vehicle manufacturer Tesla.
Within the European Union Emissions Trading System’s compliance market, the cost of carbon pricing trades in the range of €80 to €100 per ton ($87 to $108).
ATOME also mentioned that the progress towards making a final investment decision (FID) for the first phase at Villeta is aligned with expectations and is set to be concluded in the last quarter of this year as planned.
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Olivier Mussat, ATOME’s CEO, said that their Phase 1 Villeta project is aligned with sustainable development goals. This includes the creation of local employment opportunities, adding value to Paraguay, and contributing to the reduction of greenhouse gas emissions in agriculture.
“With increasing climate pressure on the fertilizer sector, the initial analysis of the potential carbon credits generation suggests a potential significant stream of value-added revenue creation,” he also said.
ATOME’s financial adviser Natixis has issued an information memorandum that offers details on the project and is an important step toward securing funding at the project level, according to a company statement.
According to Mussat, in the opinion of ATOME’s directors, the company will produce the most affordable green fertilizer globally by 2025.
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