18th Sep 2026 12:55
(Alliance News) - Atome PLC on Friday acknowledged a statement from the government of Paraguay, which said both parties have "three months to explore an amicable solution" to their dispute over the Villeta project.
The statement, from the Paraguayan attorney general's office, said that "to date, there is no lawsuit or arbitration initiated against the Paraguayan state by Atome."
However, it said the notification from Atome "communicates the existence of a dispute and raises the possibility of initiating legal action in the future".
The Leeds, England-based green fertiliser project developer announced on Thursday that it had served a notice of dispute & intent to submit a claim to arbitration on the Republic of Paraguay, following "positive legal advice".
The notice, according to Atome, stated that an investment dispute existed due to Paraguay's acts and omissions in violation of the agreement between the UK and Paraguay. Atome also noted that the USD665 million project is backed by binding funding commitments from major multilateral development banks.
This followed Atome's report in June regarding its updated power purchase agreement with ANDE, the Paraguay state-owned electricity supplier, which incorporated the electricity tariffs and terms which had been established and mandated by a signed presidential decree issued in January.
Atome said this decree had been cancelled and replaced without prior notice or consultation been cancelled, meaning that the PPA had not yet been executed as planned. At the time, it was seeking clarification on the status of the PPA, the applicable electricity tariffs, and its arrangements with ANDE, which underpinned the project funding, with Chair Peter Levine saying the firm was "perplexed by this unforeseen development".
On Friday, the Paraguayan government said that while Atome's notification raised the possibility of future litigation or arbitration, it enables "a period of three months to explore an amicable solution."
"Currently, the Paraguayan state is analysing the company's claims, so it is not appropriate to anticipate a position on the merits of the controversy," the attorney general's office said.
The government reaffirmed "its full commitment to legal certainty, respect for investments and compliance with its international commitments," adding that it "maintains its openness to dialogue but will firmly defend the interests of the Paraguayan state and the national interest."
Atome said it "will continue to keep the market informed".
Shares in Atome were suspended from AIM in July, due to a delay in the publication of its 2025 accounts.
Atome said on Wednesday it was working towards the release of both the delayed accounts, and of its unaudited half year accounts to June 30, by September 30.
By Emma Curzon, Alliance News reporter
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