Investor update

Sep 6, 2023

Slides

Good morning, ladies and gentlemen. Welcome to the Atome Energy PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged. They can be submitted at any time via the Q&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 is appropriate to do so, and these will be available via your Investor Meet Company dashboard. 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. I would now like to hand you over to CEO, Olivier Mussat. 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 Atome. I guess welcome back to work. Atome, for those 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 developing projects into the green hydrogen, ammonia, and green fertilizer sector. It's about addressing the market, the fertilizer market that exists today. It's about $200 billion 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. This is really what Atome has built its business to be and is concentrating on. I will go through the first slides very quickly as soon as my keyboard answers. You would have the usual disclaimers that you would have seen in a number of places. What is Atome doing? All right. We are actually today building the largest green ammonia and fertilizer facility in Latin America to start operations by 2025. Why Latin America? 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 24/7 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, you 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? Brazil is one of the world's breadbasket. It is the single largest importer of fertilizers, and it's also where we get our coffee, bananas, orange juice from. Being able to produce something domestically, and competing against imports from the UAE, from Russia, from Trinidad, puts us into a very strong position. The fact that we are producing a green product 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. To give you a sense, 1 ton of ammonia generates approximately 2 tons of carbon. Therefore, if you think or if you want to believe that by 2026, looking at the forward curve, the cost of carbon would be about $100. It means that you could actually have, if you have a green fertilizer product, a premium of anywhere between $150-$200 per ton of fertilizer you are producing. 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 U.K., and some of you may have seen that this summer, CF Fertilisers announced the closure of the last ammonium nitrate fertilizer unit in the U.K., which was using natural gas. Just a couple of years ago, the U.K. was producing domestically over 1 million tons a year of nitrate fertilizer, and all of that production is now shut down permanently because of the price of natural gas in the U.K., which is being prioritized to power. 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. In a world which is going to start running short of fertilizers, and in a world which is growing by 1 billion people every 10 years. Our first project is now getting a lot more developed and advanced as we are going through front-end engineering and design. To give a sense, using last year's average price of calcium ammonium nitrate, which is what we'll be producing, our first 145 MW phase one Villeta project, so what we call Villeta in short, could actually produce an unlevered return of about 29% and an annual revenue of $140 million. Obviously, this is all assuming an average price of CAN, which was the average of last year, which was a high year. 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 25 years. From a carbon point of view, it has the potential to displace nearly 500,000 tons of CO2. Over 13 million tons over the lifetime of the project. Clearly, Atome is not just a one asset company. We have a pipeline of projects, over 600 MW of pipeline, actually. Our first project, Villeta and Yguazu, will take their power from the 14 GW Itaipu Dam, that we will show you later in more detail, as we will show the presentations from James, our Country CEO in Paraguay, as well as Terry, who discusses the fertilizer sector. Clearly, there's a strong team behind developing the Atome idea and putting this idea into reality. I think, obviously, Peter Levine, who is our chairman and largest shareholder, and the initiator of Atome, as we incubated it within Molecular Energy. Clearly he has the experience to work with public companies, and to deliver real value to shareholders, but also importantly, coming from the industrial sector, has a very keen eye and keeps a very strong culture of the company to be very mindful about costs. 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. My background, I started as an engineer in the power sector, then moved to oil and gas, and financing. For the past nine years, before Atome, 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 World Bank. You also need people on the ground to deliver, which is where James Spalding is absolutely key to our team. He is the boot on the ground of Atome Paraguay. He used to actually be the general director of the Itaipu Dam, where we're getting our power from. 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 Renewable Energy Laboratory, in the U.S. She's got more than 30 years experience working in the hydrogen sector. Of course, Terje Bakken, who joined us earlier this year, who comes from a 35-year experience into the fertilizer sector, and he was on the board of two of the largest fertilizer companies in the world, namely EuroChem and Yara. Our first project that I mentioned briefly earlier, Paraguay, it just gives you an idea of where the project is. The Villeta area, the reason we have chosen it, is actually next to the Villeta Port, which is where all of the agri companies import fertilizers and export the agri products. 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. That's absolutely key. As I mentioned earlier, it's all about keeping your costs low. You want to make sure that from an infrastructure point of view, you are staying very close to your market. It's also just across one of ANDE's substation at Villeta, so we can take the power directly from the substation, again, minimizing costs, drawing water from the Paraguay River. Clearly, it's not a lot of water. We would be drawing less than 0.001% of the flow of the river. Again, making us a very low impact project within the area. How are we progressing? We've bought land, as we mentioned last year. We have signed a long-term power purchase agreement with ANDE. We have commissioned AECOM as our owner's engineer, who is obviously leading a lot of the technical work on Atome's behalf. To help, we have appointed Casale, which is one of the oldest ammonia licensors in the world. It's a Swiss company with over 100 years' experience. Obrascón, which is 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 Natixis as financial advisor, with which we have launched now the process to fund the project through project finance and asset level investment. As part of that, you have to obviously do market studies, which is what Nexant 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 the asset ESIA, Environmental Social Impact Assessments of the real impact of the project on the community and on the environment. 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 Obrascón and Casale 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. 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 Villeta, where we have started clearing the land. Sorry, I'm just going backwards a little bit. Thanks. If we can start on this slide, the video of the site. I'm sorry, the video of the asset. Thank you. In here is basically imagine on the bottom. I'm trying to hit pause on this thing just for one second. What you see here on the top left is these cables which are coming straight from the Villeta substation from ANDE as they go into the plant. Really imagine this is actually looking at the Villeta area and how we are designing the plant. 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. We have 110 MW of electrolyzers in 5 MW stacks. We only need about 100 MW of electrolyzers, but we are oversizing the facility because clearly we need to future-proof the asset. Keeping some extra capacity is the right thing to do and is the safe thing to do, to ensure you can operate 24/7. The bottom of this, you actually see mostly office and spares building. If we advance the video, we will see. It goes a little bit slowly. This is above the site building, but if you look ahead of you, basically the blue tank and the red tank, this is where the water treatment and the cooling water facility is. You have obviously cooling waters on the left. As I mentioned, you have a chemical process running with the ammonia and Haber-Bosch process, so you need to cool those. In the blue tank is the demineralized water, which will feed the electrolyzers. These white tanks that you are seeing are actually the hydrogen storage tanks, which gives us a couple of days of storage of hydrogen as to create redundancy within the system. The water will come in into the building and with all of these stacks, these are 5 MW stacks of electrolyzer. Obviously, the power comes in into the electrolyzer, water comes in, the electrolyzer separates the hydrogen and the oxygen. While 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. What you are seeing now is two streams. On the left side, the air separation unit, where the nitrogen is separated from the air. Most of the air is made from nitrogen, so it's just a simple compression system which separates the nitrogen from the air, and it mixes the compressed hydrogen with the nitrogen into the ammonia synthesis plant, which will put together the N and the H to create NH3. This is what we call the Haber-Bosch process. It will be a Casale unit. 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 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. The ammonium nitrate solution will then be mixed with dolomite or limestone, which is pretty much calcium. If I'm going to go a little bit over here. At the bottom of the building, what you will see is actually where we will store the rocks, the dolomite or the limestone and crush it into, let's say, powder. 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 dolomite rocks, and become, after that, calcium ammonium nitrate. Which is then sent back on the belt and it will be stored 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 company. You see the storage facility and obviously the trucks which will come out every day. We estimated about 30-40 trucks every day of fertilizer that will be produced. I want to say a world first in the sense that nobody has ever 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. If we can shut down this presentation. Obviously, why Paraguay? Obviously this is where the power is coming from and also where the demand is. We will move to the presentation from James Spalding, which really gives an overview of Paraguay itself. 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. 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. We're the fourth largest exporter of soybean, but our grain production has increased, and we're looking at about 10 million tons per year, and we use Paraguay-Paraná waterway. Paraguay counts on Itaipu and Yaciretá, the two very important hydroelectric dams. Paraguay's electricity grid is 100% clean and green, renewable energy. Itaipu Dam is 14,000 MW. It's the second-largest dam in the world. 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 15th of August for a five-year term, and we have already seen his support in our project. Our current investment is focused on a 120-MW facility located in Villeta, which is about 30 km south of Asunción. 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, it's important to mention that this is firm baseload, 24/7 existing green and renewable power coming from the hydroelectric dams, so we have no need to reduce or modulate our production at this time. What you heard was quite important, and it's on the way that we have long-term stable power supply. The 145 MW scale of a project, we will actually be using 120 MW of that power. This represents just around 1% of the total capacity supply of the grid. As I mentioned earlier, we are looking at a project which is going to be here for 25 years plus. That is quite key. Also what is the alignment, long-term alignment with the government. At $31 per MWh, it generates over $30 million per year to the government. Clearly this is not an insignificant source of income for Itaipu, the dam, and it's also a regulated price. There is no special deal. There is nothing that says, "Oh, you guys had a really good deal at some point. We are going to change that. No, it's actually the official industrial price. It's because Paraguay has power in excess, that we're able to do that. Obviously from a development impact, 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. If you can actually produce domestically fertilizer competitively cheaper than what it is imported. Last year the price of ammonia shot up to about $1,600 a ton. Now it has come down to around $400-$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 remain competitive. The last point I will add is on Paraguay itself. Clearly, we are overly focusing on Paraguay on this presentation, because this is our project which is going live. It's one of the best performing countries in Latin America. It has just raised a 10-year bond, at BB+, and about a 5.755% coupon. Making it extremely showing the resilience of the economy and also the cost of becoming investment grade, so BBB-. It's becoming a very interesting investment proposal for a number of funds looking into Latin America, especially as we are seeing that Chile hasn't proven to be quite stable. Argentina remains Argentina, a very difficult place to operate and the elections coming up in Argentina are not going to simplify things. We are seeing obviously some more stability out of Brazil, but Brazil also has a history of boom and bust. Paraguay has really been an island of stability over the past decades. As I leave Paraguay, I will go into the fertilizer market, and we will watch Terje's video that goes into more detail about the state and the future of the fertilizer market. The big challenge that the food industry is facing is really to produce more with less and in a sustainable way. It's really about agricultural efficiency, how you could grow Better crop with less input factors. Fertilizers, it's really about nutrient use efficiency. You need better products, you need better fertilizers, but you also need better processes. Better processes and better products will bring more sustainable agriculture. With the need for more biomass to be produced with less input factors, where the input factors also bring more greenhouse gas emissions, is not sustainable. With changing the processes like Atome does, producing ammonia and calcium ammonium nitrate without having any greenhouse gas emissions is a needed requirement. At Atome, we talk with the food industry, and whether it is the fruit and vegetable growers, the canola growers, they know that their brands for the products in the future will show what is the carbon footprint of this particular oil. When you can see that one oil or one banana has lower footprint than the other, the consumers will choose the more sustainable way. It's going to be a combination of demand pull from consumers and, of course, the regulators also need to do something. We need to change regulations. Green sustainable initiatives that Atome has will then have advantages to meet the shelves of the food shops as soon as possible. Green calcium ammonium nitrate 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 million tons consumed every year. 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 are, chia is a new superfood that is being produced or grown sustainably in Paraguay. We think for us to have the first project to be robust, tactical, and to support the farmer and to support the food industry is going to be a very tactical, good step to show that sustainable fertilizers, sustainable nitrogen can come and service that segment right away. All right. If we go to the next slide. Sorry. Oh, I control the slide. I forgot about this one. All right. From a sustainability impact, clearly what we are doing is we are able to produce competitively against any import, and that's obviously quite key. We have made a choice very early on that we didn't want to have to rely on subsidies whatsoever 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 have the opportunity to decarbonize 2.6 gigaton per year of carbon. We find it quite amazing that, yes, we all heard a lot about sustainable aviation fuel, sustainable shipping, looking at decarbonizing the transport sector. No company has really looked at decarbonizing the agricultural sector. Yet 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. From the green side, as you heard from Terry, we have clients, the Nestlés, the Cargills of this world, who have made commitments on climate. The lowest hanging fruit for all of them, to reduce their carbon footprint, is to go towards using green ammonia, green nitrates, green fertilizers. This is why we think it is really the most important market we can play a role in. Also 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. Everybody knows what's going on in this place at the moment. Just this weekend, China announced that it was restricting exports of fertilizer. 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. From, I think, our news flow, from a mobility point of view, 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. We are still on track to have our electrolyzer delivered by the end of this year. On the Villeta project itself, front engineering and design will be completed at the end of this year as well. The other side still is the offtake agreement. Once we produce CAN, what are you going to do with it? We are discussing with a number of large-scale offtakers that you would have seen in the news of who are the largest fertilizer companies, and who have expressed interest to actually buy the entire production of the Villeta. 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 product. We will be the first company to deliver green fertilizers at scale. Which means that there will be final investment decision taken this quarter, for Villeta, and we are progressing fast discussions with the financiers. Also on the engineering, procurement and commissioning, so the EPC contract, as we speak. We have, obviously, a couple of more projects in the pipeline. We announced earlier this year our JV with the Cavendish Group to create the National Ammonia Corporation in Costa Rica, focused on Central America. In Paraguay, we have agreed with ANDE, the power producer, to have an allocation of a further 300 MW that we call Yguazu Project Phase Two. We are now undergoing technical studies to mature this project. Clearly, over the next few months, the absolute priority is delivering the Villeta FID, when we have a project where we know what we are producing, at how much, to whom, and who is going to be financing the project. With that said, I think I'll move to the Q&A side of the session. Olivier, that's great. 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&A tab that's situated on the top right-hand corner of your screen. 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&A, can be accessed via your investor dashboard. 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. 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. Thank you. I guess I either did too good of a job or not good enough, because so far we didn't have that many questions compared to last quarter. I will go ahead, I guess, in the order we have received them. From James, "What do the economics for the Villeta project look like with the current Europe TTF gas prices now around EUR 30 a megawatt hour, which is multiples lower than last year? Is it still competitive against conventional ammonia production without a subsidy green premium?" Actually it is, and 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. Also remembering that what happened in 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. It's also one of the reasons where we have seen a number of plants. I mentioned earlier how CF Industries shut down its U.K. operations permanently. BASF, which was one of the largest fertilizer producer, has also shut down permanently its production in Belgium, has seriously looked to shut down a couple in Germany. 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. 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 $100 a ton advantage of the transport of that fertilizer from the east to the west. It also puts us into a very strong position to know that we have a project which will be producing for the next 25 years minimum without any interruption, unlike what's going on today in Europe. I think there's another question from Michael. "Are there any future projects in the pipeline? What do you consider the greatest risks?" I think any future projects in the pipeline. I mentioned phase two in Paraguay. I mentioned, obviously, in Central America with National Ammonia Corporation. Are we looking to other projects? Yes. I think that's one of the advantage of being the only publicly listed company, in that we actually have quite a lot of incoming from teams which are developing assets and need strong partners. The reality is our focus today is really Villeta. We are going to entertain proactively anything else until we get Villeta to an FID. Then we will have, indeed, the first entrant advantage to have successfully delivered a project, when a number of other projects which have been discussed for years are still in the early stages. What do you consider to be the greatest risk? Actually, it's execution. We don't have technical risk. We are very comfortable on the financing risk because our projects as green fertilizer project are exactly 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. It's all about execution. 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. What are the plans for transportation of fertilizers? Are you planning to own any trucks? If so, will they be net zero? 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 what we produce. Once we would have produced CAN out of the gate, we are at zero. It's very clear. 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 costs or the trucking costs. We will be shipping in two ways. We will be using the barges to go throughout to Brazil to the Atlantic to Argentina. We will also be trucking into Brazil, where we have a very clear logistical advantage compared to any imports from the sea. It's not the vocation of Atome to go and to run trucks and to run mobility. Clearly, we are looking at it very actively. As you know, our major shareholder, Peter, has created this company called Greenhouse Gas Capital, which is actively looking at transportation. We see also that the cost of trucking ammonia, of trucks running on hydrogen is still relatively high. We see it as a very strong market. You will not be able to easily electrify emerging markets. We think that trucks and heavy goods transport, whether it's trucks, whether it's barges, whether it's ships, are actually very strong clients for hydrogen, for the trucking side and for the shipping side, ammonia. You've seen companies like Intercontinental pushing very hard on ammonia to decarbonize shipping. You've seen WinGD. You've seen what's happened as well with MAN, who now have large scale engines in the final testing stages. The ultimate goal is to get to net zero, but not at any cost, right? We know that this is slowly getting there. We see it as a real market for green transportation by 2028, maybe 2030, most likely. We really wanted to concentrate on the market of today, the $200 billion a year market that is fertilizer. There's a question from Michael again. Is the dolomite sourced locally? 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. That's another tick in the box of why we chose CAN as the best green product. You have more complex fertilizers that the plant design allows us to do, but CAN and the competitive advantage and the fact that we can source everything locally at very competitive rates makes the project even stronger. A question from Gal, which is, who are the offtakers of your fertilizers? There will be your usual suspects, the large fertilizer companies. If you look at Yara, Nitron, Ameropa, all of these large names which trade fertilizers. We're also having discussions with the end users as well. We don't want to say too much more. Are we having discussion with, let's say, the large users like the Nestlés, like the Dreyfus, like the ADMs? Of course, we are. We would be stupid not to. Watch this space is the best thing I can say. A question from Mike, have you selected your electrolyzer suppliers? We went a few months ago to the market of electrolyzers, and across the Americas, Europe, and Asia. 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. 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 complicated, I guess. You have to look at a number of things, is number one, obviously power is important. Logistics is equally important. Infrastructure is important, where you don't want in these early stages of this growing hydrogen ammonia fertilizer economy, you have to pick the places where you have the least amount of risks possible. 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 ports, for example, to export, you are adding risk on risk on risk. It's all about trying to find the places where there is available power, a government policy and environment that incentivizes you to work with them, but also you can knock off 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. The only way to deliver before 2030 is if you have very focused projects that don't have to build extensive transmission lines, extensive amounts of power, or look at too much storage, all of these things which will add on and add on and add on. Hopefully that gives you an insight on how we are looking at it. 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 the secret sauce, so we're not going to be disclosing that. Clearly, if you look at the reports published by our brokers, whether it's finnCap, Liberum or SP, or even the studies done by Longspur, it will give you a sense of what is the range of prices which will work. A question from Miguel on Villeta. Questions keep popping up. You mentioned the past final investment decision in September, October, now it's Q4. Am I being too picky, or is based on slippage in the FID date? Yes, you're absolutely right. 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. 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 time, the financing structure in the same way. Yes, I can say, we've slipped by a few weeks. I'm sorry. We really are trying our best to make it, and if anything, we keep being told that we are going faster than anybody else in the market. Actually, when we see a lot of projects being put on hold because they haven't made the same choice as we have, we still feel pretty confident that we are doing our job right. What we have? Mohammed, when is the EPC project kickoff? That's going to happen again this quarter. We are really in the middle of the discussions, of the EPC. It's going to take a little bit longer. Clearly for us is when we get to FID, is going to be the EPC project kickoff. I think a question from Patricia: For EU market purposes, there has to be additional renewable energy. For EU, how does Atome look at this? Actually, the additionality rule does not apply if you have 100% green grid. There's a lot of, let's say, nuances into RED II and RED III. Clearly we also are choosing places where we are limiting some of these risks. Again, we don't need, let's say, EU carbon credits to make our projects bankable, and that's clearly very important for us. On the theme of additionality, we are in one of the exemption cases. There's been a question from Steve and from James on the Iceland project. I think we've mentioned that a couple of times that 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 term, towards the shipping sector. We are still working hard to find a way to make it work in the shipping side. We've mentioned earlier this summer, a partnership with Samherji, which is one of the largest shipping and fishing company in Iceland. It's all about making sure that we can find a way to make this economically sensible in a market, which is the shipping market, which has gone a little bit slower than expected. We've also noted, and we've discussed publicly, that the power market has been highly disrupted by the Ukrainian war. The largest offtake of power actually in the country, in Iceland, has been the green aluminum sector. What we have seen is a price of power which has gone up, and 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. 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. 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 Villeta project is absolutely on top of our mind. A question from Kevin: Are there any issues with delivery from the facility into the market? How close is the facility to the existing roads, infrastructure? If you look at 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 Villeta substation, we are literally across the road from the substation. 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 electrolyzers. As far as the port, we are anywhere between 2 to, I think, 5 or 6 kilometers to the 4 main ports of Villeta. We are extremely close to all of the infrastructure. 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. Have we had discussions with OCI? Yes. OCI is also making great strides in Morocco to develop its own green ammonia projects. It's part of all of the discussions that we have been having, as far as the off-takers go. OCI, obviously, it's too big of a name to ignore. They are working on their own projects, which are very interesting projects in North Africa. I think I've managed to answer all of the questions. Olivier, absolutely. Thank you very much indeed for being so generous with your time then addressing all of those questions that came in from investors this morning. 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. 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, 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 the deadlines that we had put in our own minds. We are very fortunate to have very strong partners, and I'm mentioning IDB, and I'm mentioning Natixis, and Nexant, and JGP, and AECOM, who has been doing an excellent job for us. I really want to thank them and the entire team of Atome. Clearly, the markets are what they are, but for us, it's very clear that as investors ourselves into Atome, we are extremely aligned. The entire team is fully aligned with all of the shareholders who are on the call today. Trust us that we will do whatever we can, and we will continue to do everything to make sure that we are able to be the first one to deliver green fertilizers in a record time. Olivier, that's great. 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. This will only take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of Atome 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.