Atome Energy has awarded a first front-end engineering and design (FEED) contract for its planned facility in Paraguay.
Atome signed the contract with Concret-Mix, a local company. It appointed Aecom to act as owner’s engineer in June for the project. Aecom advised on the FEED contract.
This first step is a 60 MW project at Villeta. The FEED work will cover the civil and electromechanical works to adapt the ANDE substation.
The designer should provide the FEED by the end of September 2022. Following this, Atome will appoint an engineering, procurement and construction (EPC) contractor to prepare the site to receive power. The company aims to reach final investment decision (FID) on this project by the end of the year.
Atome CEO Olivier Mussat said the FEED contract was the “next step in what will in due course culminate in an aggregate of 400 MW of green hydrogen and ammonia production in Paraguay, the first phase of which at Villeta is expected to commence production by Q1 2025.”
The company will be at the forefront of the industry, he said.
“We are, as well as other local partners and stakeholders, particularly pleased to ensure local content and jobs in our project and look forward to a long and mutually beneficial relationship with Concret-Mix who we are also working with us in our Mobility Division,” Mussat said.
Aecom is also seeking expressions of interest on the full facility FEED. It distributed requests to select contractors on July 22. Atome said the response had been “very encouraging”.
The hydrogen producer has already begun work on an initial 1 MW project. Site clearance has begun for this project, near Asuncion, with first hydrogen due in the first half of 2023.