Atome to launch transport hydrogen division in Paraguay

The AIM-traded firm said the division would provide a “clean energy solution” for heavy road transport and shipping, which it described as two “hard-to-abate” industries where battery alternatives could not yet provide effective solutions.

It said Atome Mobility would initially focus on hydrogen energy supply to the road transport sector from the main areas of population.

Negotiations were underway with a number of potential equipment suppliers, with a goal to launch that part of the business by the end of the first half of 2023.

Atome said it expected funding for Atome Mobility in Paraguay to be sourced from its existing resources.

Part of Atome Mobility's business plan would be to co-invest and co-venture with operators in the end market, to “educate and promote” the use of Atome’s clean energy in Paraguay.

Discussions were progressing on that front as well, with memoranda of understanding expected to follow.

Atome said the new division would run in parallel with the planning for its large-scale green hydrogen and ammonia businesses in Paraguay and Iceland, which the board said was on track and on schedule.

“Atome Mobility's initial objective is to provide an integrated heavy goods transport offering bringing together vehicle manufacturers, haulage companies, financial solutions and end users in a closed loop all benefiting from Atome’s green hydrogen,” said chief executive officer Olivier Mussat.

“To achieve net zero, the decarbonisation of transport has been identified as a priority by both Paraguay and Iceland in their national climate strategies.

“Companies are also increasingly under pressure from stakeholders and funders alike to minimise the emissions involved in distributing their products globally.”

Mussat said that was particularly the case where the parent companies were based in Europe or America.

“Recognising that the production of green energy is only part of the matrix, Atome Mobility aims to provide an integrated solution to accelerate the path for transition to zero emission green energy for all stakeholders whilst embedding Atome as the fulcrum of change.”

At 1522 GMT, shares in Atome Energy were down 5.66% at 57.55p.