Atome (LSE:ATOM) — Corporate and Business Update

0:00 Good afternoon, and welcome to the ATOM Energy PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. 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. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Olivier Masat, CEO. Good afternoon, sir. Hi. Good afternoon, everyone. Thank you very much, for, allowing ATOM to present the latest update. From what I understand, there's quite a few people who are joining today. So we will go forward with the presentation.

0:49 And you some of you who have been here for a while may have noticed the updated logo, I guess, of ATOM being representative of our significant move towards the fertilizer sector. Clearly, this is not the only thing that ATOM will be doing. But on the near term, it is very clear to us that, you know, the easiest way to develop green ammonia project is to be extremely focused on the fertilizer side. I will now move on to the next sections, which are the usual disclaimers as a public company and for some of the new shareholders that we have. So who is ATOM? Right? So we are we are essentially the the first and only pure play developer listed on the London Stock Exchange focus on the development of green hydrogen and green ammonia.

1:45 And our first project's absolutely going towards green fertilizers. So now we have three operating entities. So we've Paraguay, which was the original which which originated at home, Iceland with the greenfield team, and in Central America with in partnership with the Cavendish team, which leads us to a pipeline of projects of around 600 megawatt. So our first project, and I will discuss a little bit about it, is the Vienda project. So a 120 megawatt announced with a start up date in 2025. It's the largest green ammonia project announced to date as far as being able to operate so rapidly in the Latin American continent.

2:33 Some of you may remember, so a 120 megawatts enables you to produce up to a 100,000 tons of green ammonia as a liquid. And once you go into the further process of calcium ammonium nitrate, it allows you to to basically produce up to 250,000 tons of calcium ammonium nitrate with FID decision now is expected by September, October of this year. So our products, you know, obviously, is a 100% green, 100% using renewable power. In the case of Paraguay, it's obviously hydroelectric power. And to give you an idea of impact, I mean, it's great to produce a product and a green product, but the consequence of having a green product allows you to abate over 350,000 tons of carbon.

3:26 In the market for Latin America, for example, you know, if you are going to be producing when there's a yearly demand, you know, of nearly 20,000,000 tons per year of CAN, that's a significant amount of displacement that you can do in the new economy. So what's what's the business? You know, how how do we produce green hydrogen, green ammonia? So going back to basics, to be able to produce green hydrogen, you have is you are is pretty much electrolyzing water. What does that mean is you use an electrolyzer, which is pretty much a giant electrical hammer, which takes pure water. So h two o separate separates the h on one side, hydrogen, and the o on the other side, oxygen.

4:12 So with hydrogen, you can do a few things. Obviously, everybody has heard about using hydrogen from the mobility side with hydrogen vehicles, you know, with whether it's Toyota or Hyundai, can now buy hydrogen vehicles in your dealership. But, actually, with hydrogen, you can also make ammonia. You treat it as a base chemical. And that's the way it has been done for decades now. And through the process, you take the hydrogen, you add nitrogen, and it becomes ammonia. And ammonia, the largest use of ammonia today is in the fertilizer sector. And ammonia, you can have it in different forms, whether it's calcium ammonium nitrates, ammonium sulfates, and, you know, urea and so on.

5:01 And so what you can then do is depending on the choice that you are going to make, you can go further downstream. And in our particular case for the ATOME, make calcium ammonium nitrate, and I will go a little bit later in the presentation on explaining CAN. Ammonia also can be used as a fuel in the marine sector, which is the focus of our partnership with Green Fuel in Iceland. The way we are developing our projects is really our own IP. Right? We don't take technology risk whatsoever. We are actually, you know, very much technologically agnostic. The fact that we are using baseload hydroelectric power allows us to be technology agnostic and use alkaline technology, which is which has been in operation for nearly a century now.

5:47 You have heard a number of other technologies, whether it's PEM or SOEC, which are the newer kids on the block. PEM doesn't really offer any incremental benefits on the efficiency of transforming electrons into molecules, but it is better suited when you have to deal with wind and solar power, which by essence is quite intermittent. The other technology called SOEC, solid oxide, is is a very promising technology because it has a higher efficiency to transform electrons, electricity into molecules, which will generate better returns, but this is still pretty young as a tech. So our view is we want to be as simple as possible, as focused as possible by buying our power from existing partners, our hydroelectric power in Paraguay, from from Ande, which has the second largest hydrogen dam in the world, and use hydrogen created to make ammonia and then attack and sell our products into the market on a fast track basis. Because whilst the economy is moving extremely fast, we strongly believe that if you can get if you can be first to market, you will be able to generate the highest returns and the highest interest.

7:03 Also, we are not waiting for the hydrogen market to be created over for all the growth of hydrogen trucks or the growth of the hydrogen economy at the long term. We are selling into a market which exists today, which needs the products today. So this gives you a view of where we are today. As I mentioned earlier, the different partnerships on the project. In the first project in Paraguay, hundred and twenty megawatt phase one in Vieita. We are also maturing another project in Paraguay, which we call phase two Iguacu, which will be 300 megawatt. So two and a half size of the Vieita project. There, we already obviously have a long term power purchase agreement with. We already have our owners engineer working with us for nearly two years now with ATOM.

7:52 And on the financing side, we are working with Natixis, the French investment bank with the Inter American Development Bank, which is the equivalent of World Bank for Latin America. We have our front end engineering and design contractors, which are Urbas and Casale, which are very important into putting the project together, doing all of the engineering, and being able to be ready to go towards the EPC. So engineering and procurement who will do the construction. The choice of Orbas and Cassale was a very logical choice. You know, Orbas, with its team have developed a number of projects and initiatives in hydrogen over the past five years in Spain, but also had developed a a number of power projects in Latin America. So the ability and the expertise to have developed power projects in Latin America was absolutely key added with Casale. Casale is one of the oldest fertilizer chemical company in the world.

8:50 They have built a number of ammonia and calcium ammonium nitric plants across the globe. So for us, they are a perfect partner with a track record of delivery efficiently and are very well recognized within the sector. And we are now nearing the end of the work on the environment and social impact assessment where we've been very happy with the work done using IFC and World Bank performance standards by JGP and with partnership with Nexon on the market study. Because, obviously, we believe in the market, and you can see on what is written on the press. But when you go to see to lenders and investors at the asset level, because our view is to finance all of our project at the asset level as an infrastructure and energy infrastructure projects.

9:38 You need to be able to evidence in front of your lenders that what you are saying is true and able to show that you can deliver on time as expected into the market. So a little highlight on the progress made since the IPO. So we actually we are still, you know, the a relatively young company in an extremely fast moving sector, we listed ATOM in December 2021. And since then, we've arguably been one of the fastest growing company in the entire sector. In here, you would have seen all of the steps that we have done over between in 2022 and now in the first half of twenty twenty three.

10:23 Clearly, you know, although we want to grow fast, we have to be very focused on delivery because our ability to deliver VETA on the original fast track basis would enable us to do more. You see, obviously, our our shareholder list over here on the right. Our original we were incubated within molecular energy and and spun out of molecular, which is why they own 25%. Peter Levine, our chairman, owns 22%, which, like me, where I'm 3.9%, we have bought our shares at the IPO and then followed our money at every single capital raise. And we are welcoming this week Baker Hughes as a new significant investor, and I will go in on the next page to explain the thesis behind the transaction.

11:09 And you see the other shareholders that we have between Trafigura, Schroders, Kinpo, Hydrogen. So Baker Hughes was quite a fundamental and an important step in our growth. We had been discussing with Baker Hughes for quite a number of months now as we have started front end engineering and design for our project. So there are a limited number of global engineering companies who can deliver hydrogen compressors, and Baker Hughes is actually one of them. So Baker Hughes may be, you know, better known for its work in the oil and gas side, but they had increasingly been working on the on the wider energy sector. And some of the energy compressors and hydrogen compressors are second to none. Obviously, it's a $28,000,000,000 company. You know, it's a great partner to have, and for us, it's a great recognition that what we are doing is being recognized by the industry, and and the industry want to follow us as they want also to take leadership because whoever can deliver the first projects will then have a significant advantage to win following contracts.

12:18 We put on this slide some examples of of the work that Baker Hughes has done in the hydrogen space. You know, they announced just a couple of week ago a cooperation with ATNOC, the Abu Dhabi National Oil Company towards advancing hydrogen, but also they are one of the original participant into the high twenty four private equity fund, which was which raised 2,000,000,002 billion euros and is the largest PE fund focused towards hydrogen projects. So in exchange of the investment, they have a right of first offer on on our projects to be able to supply compressors, which obviously from on one hand enables us to have a very active dialogue with to make sure that we are rightsizing the project and rightsizing all of the equipment, including the compressors, which is a significant part of any project.

13:12 But also because, again, it's a right of first off rate ensures that we have competitive pricing at every single point in time. So, a a quick resume on on our team. I mentioned Peter earlier, and, obviously, Peter being, you know, the founder of the company, has a significant track record of delivering projects and companies across the energy space. You know, he's, best known, for his, successful creation and exit of Imperial Energy, for over $2,000,000,000, back in 2009. But very importantly, you know, he was also chairman of a number of of steel and engineering companies. We have to be extremely realistic that no matter what people say, you know, when you look in when you work in hydrogen and in ammonia, it's you know, some people think it's tech, and it's absolutely not tech. It it it's it's the chemical game. It's a margins game.

14:06 So the focus on cost is absolutely clear, and and the focus on delivering time line is absolutely clear. So and Peter provides us with that guidance to continue pushing into the right direction. So in my experience, you know, I started as an engineer in the power sector with an offshoot of GE. I then moved into the oil and gas engineering side with Schlumberger. But for the past fifteen years, I've been on the financing side of the equation investing across debt and equity across the sectors. And it is when I was over the past nine years at at the IFC that working and investing in in former companies of Peter that that the hydrogen strategy was really pushed and and devised. And the idea is clearly for us to have a benefit of The UK listing to be able to accelerate our projects and then and then provide and put together the financing to invest at the asset level because, really, this is where you have a widest amount of financing available.

15:06 So, clearly, having an LSE listing gives you a lot of leverage to ensure that you can get the best term when you will be financing the assets. We're we also wouldn't be here without a great team on the ground. You know, whether it's in Paraguay, in Iceland, or in Central America in Costa Rica. And Jim Spaulding is is as president of ATOM Paraguay is absolutely key as well. His experience is second to none. He used to be the head of the Thai Pudan, which provides us with the electricity. He was also minister and representative on the on the board of the World Bank in the IDB. And his last public work was actually working on the decarbonization strategy of Paraguayanande.

15:52 And this is really when the opportunity to use Paraguay's excess power to help decarbonize the country further, but also create a new industry within Paraguay, which will add value not only in the country but in the region became really real, and he's able to help us deliver it. Obviously, we need the other side of the expertise, which is our long term long standing hydrogen expertise, which is where Mary Rose comes in. You know, for over fifty years, she was the head of the International Energy Agency's hydrogen unit. And so she has long standing experience into help this you know, helping us guide with the right people, with the right with the right industries, and and, of course, you know, questioning a lot of the technology because there's a lot of things being said, but you really have to get under, you know, under the brochure to see where is the reality and who has been delivering and who has not.

16:48 And the most recent hiring to the team has been Terry Bachen because we have, you know, done the engineering of the project. We are putting the financing together. And and it's only at the point where we really understood where the power comes from, where are we going to build the projects, where are we going next. Well, now we have to work very hard on the uptake side. And and Terry is you know, he used to be VP senior VP of ammonia and fertilizers at Yara, one of the largest company fertilizer company in the world, and also had the same one within EuroChem. So, actually, you know, Terry and I just came back from the International Fertilizer Week, which was held in Prague this week. This is the largest global conference on fertilizers where we met, let's say, everybody who we need to speak to to ensure that we can look for the best possible marketing agreement to to uptake the the ammonia and the calcium ammonium nitrate c a n from the ATOM.

17:51 And this now, we will look very briefly into the sector and just show you how how fast this sector has been moving. And we are really moving from a tech focused sector to a delivery side. And in this, you see in the press, you know, what has happened since the beginning of the year. You know, everybody or most people have heard about the inflation reduction act in The US, which is pushing extremely hard and extremely fast the new technologies of decarbonization of hydrogen of renewable power into The US. How, you know, even BMW is also has just unveiled this week a new a new hydrogen car. And what has been two I mean, three fundamental events over the past month and a half. So number one, the international market organization has really stepped up to the plate as far as pushing the regulation to enable using, well, pretty much e fuel with ammonia front and center into the shipping sector as a best way to ensure zero carbon shipping.

18:55 We have also seen the food groups, you know, OCI, OCP, the fertilizer manufacturers starting to now actively look for and purchase green fertilizers as they have as they want to create more independence towards the oil and gas value chain, which only one is obviously highly carbonated into the production of fertilizers, but also can lead to a lot of a lot of issues as we have recently seen between Russia and and Ukraine where the flow of fertilizer just stopped. Finally, one of the first large project, green ammonia project, has now reached final investment decision.

19:42 And that was developed in Saudi Arabia with NOAM, Aqua, and Air Products, which have they have raised $88,500,000,000 to finance their project, which will be in operation over the next five years. So it's obviously it's a much bigger project than what we are doing but but we are doing. Sorry. But and it will be delivered quite a little later than us. But it gives us full confidence that we are going exactly the right direction in a market which is maturing extremely fast. So as as for a quick reminder on, you know, what is green hydrogen, you know, I mentioned earlier what what how do you make hydrogen, but also the different markets that hydrogen can go for. And it really has the big advantage that electrification will only go us would only take us so far. You know, there's a very good reason why even in London, we have electric buses and we have hydrogen buses. It's because you need the molecules. You need to have energy and molecules to give you that flexibility and have zero carbon hydrogen molecules.

20:45 And more and more now that hydrogen, as we discussed earlier, you know, ammonia is by far the largest market at scale to use that hydrogen. And then soon enough, it will be it will be followed, you know, between transport, power generation, and also the ability to use green ammonia to transport hydrogen over long distances. But our focus, as I mentioned, you know, has really been a very pragmatic focus, which is in today's world, if I'm going to be producing hydrogen, you know, I need to find a market. That market is ammonia and green ammonia. And what is the biggest market in green ammonia? Again, it is the fertilizer world. Right? And and it is quite important to continue focusing on that because this is an industry which has been relatively quiet over the past over the past years, but it's just as big as the oil and gas industry. But ammonia alone, we're looking at about a 180,000,000 tons a year. You know, it's a globally traded commodity, but 95% of it comes from hydrocarbon, from natural gas, from coal.

21:45 So the the importance to go and obviously decarbonize these fertilizers because for about for one ton of ammonia coming from natural gas, it will generate around two tons of carbon. That's a very clear impetus on climate. The other side is the industry is also very realistic that the amount of funding to be and the ability to develop new oil and gas projects or new coal project is fast coming down. And as we have seen with the price of gas going significantly higher over the past two years and the availability of natural gas has become an issue, you need to find alternatives if you want to be able to feed a world which is growing by about a billion people every single ten years, which is where green hydrogen and green ammonia plays an absolute key key role.

22:37 On this slide, we show a little graph on the right coming from the International Fertilizer Association, and it shows you how the speed at which the fertilizer use is growing because we only have a limited amount of land globally to feed a growing number of people. So you see in 2021, 2022 has the demand has come down, and it has come down sharply because of two things. Right? Number one, clearly, as the price of fertilizers went up, people were less able to buy fertilizers and farmers were really in a pinch. And, of course, you know, there's the element of COVID attached to it, but that that demand is rebounding extremely quickly. The as we were mentioning, of course, you know, as you look at ammonia across the world, across the stream, you know, what are we looking at? The thing is that ammonia based fertilizer pretty much feed half of the world today.

23:32 There's a lot of talk around organic fertilizers, but the reality is if you want to do things at scale and growing, the ammonia based fertilizers are absolutely the key to do things. But as I mentioned earlier, it is also the highest carbon emitting fertilizer sector that you can have. So the ability to do it green solves that problem. You are and then, obviously, we are looking also, you know, at a demand, which is extremely growing. As I mentioned earlier, if you want to feed a growing world rapidly, you know, the ammonia based fertilizers, so nitrates fertilizers are there. The and within all of the products that you can make with ammonia, calcium, ammonium nitrate is actually the fastest growing one. Today, the largest ammonia based fertilizer that is that that is being used is urea.

24:21 It's because it's flexible. It's very well understood. It's it's been used for for decades. But the problem with urea, it has the highest carbon content of all fertilizers Because to do urea, you pretty much mix nitrates, so you use ammonia, and then you add c o two into it to be able to to disperse into the field, and, basically, the c o two is is the medium. Calcium ammonium nitrate are pretty much what we use is is we use, you know, calcium rocks dolomites that we mix with the ammonium nitrate solution. So it's a it's a zero carbon fertilizer which has better properties than urea. And it's and it's and the advantage that it has is that it is also a lot more flexible and a lot easier to transport globally. So when we were looking at when we were doing the production and putting the design of of the plant of Vieja, one of the first meeting that we had when Terry joined us was that, well, I completely understand what you are doing with ammonia. I really understand the whole thesis, but, really, the the the fertilizer world will put a huge premium if we could produce calcium ammonium nitrate.

25:38 And because this would this is an end product that they can use right away very quickly. And because this is pretty much you sell it in in in very large bags, right, it becomes a powder, and it's an inert powder. You know, there are zero zero handling safety issues, very limited one attached to attached to handling CAN. This is also the cheapest on the logistics. So whilst clearly the regional market of Mercosur, so which is which is Paraguay, Argentina, Brazil, which is our market, is very large already. You know, we're talking over a million ton a year of demand. You can actually very easily ship it into Europe, which is which is over 10,000,000 tons a year of demand and growing extremely fast.

26:29 So as far as scaling up the project, you know, as I mentioned, VETA, we are we are going full speed ahead in order to reach FID by September, October. And from then on, we will it will take about twenty eight months to to to complete the building of a facility, to complete the commissioning, and to have the start up and to be in production starting up production in '25 and delivering very quickly. As we have we actually started clearing the land to prepare for the for the sorry, for piling the land, for preparing the land because, obviously, this is there's going to be a lot of equipment being put as we start ordering by the end of this year.

27:17 And in parallel of, obviously, delivering VETA, you know, you would expect that by by the end of June, we will have the investment memorandum ready to send to the lenders and asset level investors via and and IDB's work. And we will also have very advanced we will advance, sorry, our discussions with the offtakers to choose our marketing partner over the next couple of months. So that has that is the type of announcements you can expect from the projects. I mentioned Iguazu, also in Paraguay. That's the the second largest phase. We are obviously in advanced discussion, and we continue to discuss with Andy. We are very happy with the way things have been going. It's a real partnership that we have with Hyundai. I think it's you know, we are seeing them deliver in Paraguay, increasing the capacity of the grid to order to enable large projects like ours and use domestic electricity for the benefit of the country and create more jobs.

28:22 And, of course, the last point that we have is the much smaller mobility project that we have. We're talking a a megawatt of electrolyzers, and this particular one is in partnership, obviously, with CPH two, which we are continuing to mature and and we'll be deploying by the end of this year. When it comes to Iceland and Costa Rica, you know, compared to our original timelines, Iceland has gone a little slower than expected. You know, as I mentioned a number of times, we the country has not been immune from the cry from the energy crisis in Europe. But we announced a couple of year a couple of weeks ago that both HS Orka and ON had signed up to a total of 60 megawatt of power capacity available from '26 onwards.

29:11 And we had, in partnership with Cavendish, shut up the National Ammonia Corporation where we are pushing ahead to mature our first project, which we hope we'll be able to announce in the next couple of months. We've been looking at other geographies, and we've learned quite a few interesting things. Obviously, the main thing is we are confirmed that we are one of the lowest cost project globally, And that's great, but as I say, we have to deliver, and we're absolutely focused on delivery because this is what will bring the most value to shareholders once they are once we are able to prove to the market, to the industrial partners, to the offtakers that ATOM was right earlier than anybody else and will be able to deliver more value than anybody else.

29:59 So with with that said, I think I will move to the q and a now. Olivia, thank you very much for presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab which is situated on the top right hand corner of your screen. But just while Olivia takes a few moments to review those questions that have been submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Olivia, as you can see, received a number of questions throughout today's presentation. And if I could just ask you to read out those questions and give responses where it is appropriate to do so, I'll pick up from you at the end. Thank you very much. We I think I'll start with a pre submitted question, which was, has the company taken a few on available electrolyzers and specifically for current projects? Are we looking at alkaline, PEM, solid oxide? So as I mentioned earlier, our focus is really to be low technology for our large projects.

30:58 We will not take any technology whatsoever. So alkaline is the one that we are choosing. We've actually spent, and we did a little bit of an RFP slash beauty contest in as part of the front engineering and design. And whilst we had we didn't want to entertain offers from for on PEM, a number of suppliers did did offer it as a possibility, and it confirmed two things to us, which is, obviously, we did not need PEM, although they have, you know, very the track record for PEM is growing extremely fast. As I say, the efficiency and the efficiency advantage is not is not relevant to us in our baseload hydrolytic power. And, also, the fact that the track record at very large scale wasn't long enough for us. Right? Our view is simplicity in everything we do, which is why we went to CAN as as an end product for Vieira.

31:55 It is the easiest product to place. It's the easiest to add product to identify a green premium. And with alkaline electrolysis, it's the same as well today. If you can use alkaline electrolysis, use alkaline electrolysis because you have a track record. You are able to see and audit the operations of other large scale projects on alkaline. Am I am I dismissing PEM or SOEC? Absolutely not. I think for our future projects, we will absolutely, you know, look look look at sourcing if if needed. At this point in time, as I mentioned, I think SOEC seems to have the the highest potential because it will it will be the one which gives the most value. If it is 20% more efficient to change electrons into molecules of hydrogen, it means that you will have 20% more money on the back end for you.

32:52 The on the mobility project, as we as we discussed last year and we had been working with c p h two, obviously, this is a much smaller scale for us. We see that mobility gives us a great optionality for the future. And and and we saw that the partnership for CPH two in working into a small scale mobility project made a lot of sense. Obviously, we have we both are companies with Yorkshire Woods, so it made a lot of sense for us to mature a project which which is a little bit of a demo project at this particular stage, but has a lot of potential to grow in the future at a very low capital exposure. I will move on to the next question, which is is High twenty four future potential investor to the company since Baker Hughes is about to become a shareholder? So Baker Hughes is a shareholder on both.

33:45 And and we have had, you know, good discussions with high twenty four. I mean, this is but, like, we have had good discussions with absolutely everybody. So so we can hope that high twenty four would like to come into our projects. It's I think for us, you know, we we will we want to have the right partners, but also we want to make sure that these partners are the right partners on the technical side that they can add something, not just their money, and that they have also the same vision as us. So this will be the work over the summer to decide who we want to work with in our first project. And, you know, as we talk to the market, I certainly hope that I twenty four will be very active in this discussion. It's a great fund made by a number of, you know, very, very competent people, and and we will see as as negotiations continue and as we try to find the best partners to enhance the value of the project. But, of course, as as as shareholders, as I mentioned, you know, the entire management came in at the same time as anybody else. So we are all extremely motivated to make sure that we find the right partners and the partners which gives us the most value.

34:58 Then a question from Mark. When do we expect to close the financing on the ATOME? Do finance partners accept ATOM to raise additional equity as part of the project finance. And so as I mentioned earlier, you know, we we certainly hope to be in a position to close the financing at FID, so September, October. And this is why we hired Netexis on on NIDB. Right? We whole game in there, and that's the whole infrastructure financing game, is to be able to optimize asset level financing, investors coming into the assets. You you if you look at the old oil and gas model of maturing projects which look too risky for the majors. And then when you mature it, when you get them to FID, you do a farm out at the asset level so that you minimize the equity that we as ATOM would have to put in to the project, but obviously keep the lion's share. The other side of being a listed company also gives us more leverage to be able to ensure that we get the most value at the asset level because there may be cases where raising a bit of money at the PLC would make a lot of sense.

36:06 Our view also with the PLC has also was always that you you get most diluted during the period we are in, which is the pre FID period. This is where money tends to be the most expensive, and some of the funds, some of the large funds would actually charge you the most for it. So being able to to do what we do through the listing, through our very supportive shareholders enables us to raise and to create a lot more, let's say, to to raise our profile and to give us a lot more leverage vis a vis the asset investor levels. Then I look at a question from Sam w. Two question relationship between BH and and access to hydrogen compressors. Does it cover Iceland and Costa Rica in addition to Paraguay?

36:54 And is the production of CAN the long term plan in Costa Rica? So it's it's it's a corporate relationship that we have with Baker Hughes. And and it's not as as as I mentioned, it's not an obligation to work and to to take Baker Hughes compressors if they don't fit the particular project. But it really is you have to see it as a partnership. And the other side is is reproduction of CAN, the long term plan for Costa Rica or Central America. Each country is different. You know, they they and each country needs different types of fertilizers. So we always look for what is the best thing for each project. While CAN is the best thing for Vieita, in Paraguay, CAN may not be the best product product for Iguacu, for example.

37:40 So that gets matured as you mature the project, as you talk to the market, and the CAN that shows the the choice that that we made to go towards CAN was in discussion with Terry, but also, of course, all of the offtakers. You know, we don't take decision in isolation. We always want to put and to sell what the market wants. We don't want to we don't want to push something that the market is not ready to take, and this is both a question of a regional market, but, of course, the global market. And then I have another question. How competitive is your green product? Are you already seeing interest in green fertilizer from the agri and food companies? Well, as I mentioned earlier, we just came back from the IFA conference, and it was one of the very large themes of the conference. And what we are seeing is this is this is growing extremely rapidly.

38:34 And this is pushed both by the fertilizer companies, but especially the food companies. You may have seen in Europe now, every single food product is going to get an environmental rating, whether it's a, b, c, And we have seen already evidence that, for example, there's been a drastic slowdown in the sale of meat in in Germany, for example, when people saw the carbon footprint of meat. So the food industry knows that it's coming and they if they want to be able to keep the, let's say, the social license to continue to operate, what happened to the oil and gas sector ten years ago is starting to happen into the fertilizer sector. So and the sector also understands that, yes, there is a little bit of a premium, but the cost of fertilizer, whether it's in sugar or cocoa or potatoes, is not high compared to the cost of the end product.

39:23 So it means going green fast is actually a lot easier than what people are saying. And are we seeing some premium today? Yes. We are. It kind of depends, but there's also one big thing that we have to keep in mind is the carbon border mechanisms which are not being created. And and this is where we will be in a great position because if we were to take hot ammonia alone, if we assume that the c bands that which will be starting to be enforced from 2026 onwards works is true. Well, the reality is, as I mentioned earlier, one ton of ammonia is two ton of carbon. Two tons of carbon would cost about $200 a ton. Right? So, so that gives you a physical I mean, a logistical and commercial advantage, to produce, green, versus gray imports, which will be highly taxed.

40:19 Another question, do you intend to supply the local market, or could you look further to Europe? Well, as I mentioned, we have, you know, we have indeed looked at the entire market. And our focus in every country we work with, it's a partnership with a with a host country, which is why we have teams on the ground, which are real partners like the team of Cavendish, like like the team of Greenfield who understands the local site. It's not you know, we don't do things just for exports. Right? This is not the way to develop projects. These are these are facilities which will be here for the next forty years. Right? This is not ten year, and then you move on and you have a declining asset. These projects, once they are running, they will be they will be running at 97, 98% capacity flat for forty years. So you need to look at it as a local partnership where your first project, your first market is the local market.

41:17 And very quickly, you look at the regional side and then you look at the international side. The domestic and regional market of Metro Sul is a great market because it's a market which has to import everything. So logistically, we already are and can be cheaper than any import, including the gray hydrocarbon based import. So that's fantastic. But when you have markets like Europe and even like Asia, which increasingly need more and more fertilizers and need more green fertilizer with higher taxes, it is it is absolutely crucial that we are able to export. And being able to do CA in Vieira makes it extremely easy for us to go all the way to Europe where there is already a green premium market that exists. It's still quite niche, but it's growing extremely fast. And we have had some incoming from some off takers.

42:11 Another question, let's see, from Mike. Has ATOM considered any partnerships with other companies or industries in Paraguay to accelerate infrastructure build and cost? So as we we talk obviously to to the entire markets, and and we try to find the right partners for us across across the level. Right? So whether it's in Paraguay alone, yes. You know, obviously, the team between Jim and upon Pablo know most of the market over there, most of the engineering firms. Clearly, it's it's not just about having international companies coming in and then leaving. It's about local content. We have we are also on the electromechanical study that we did.

42:56 For example, that was done with the local companies. So indeed, you know, we as I said, we don't work in isolation. We don't fly in and fly out. It's all about making sure we also we find the right people on the ground because it just makes sense on the long term, but it makes business sense. Right? It is much cheaper to use very good qualified local labor than flying somebody from Houston or London or anywhere else. And another question from Mike. Will 300 megawatts for Iguazu project also come from Itaipu, or is it a new project? So no. It's and it's one thing I I could have highlighted earlier that, obviously, I forgot to say it now, but, Itaipu is the second largest hydroelectric dam in the world.

43:42 It's 14 gigawatt. And this is jointly owned between Brazil and Paraguay, so which means seven gigawatt to Brazil, seven gigawatt to Paraguay. But out of out of that seven gigawatts net to Paraguay, Paraguay actually only use about two to three gigawatt and exports and has been exporting for the past forty years that power into Brazil at a at a pre agreed price, which is obviously pretty low. So it's all about using that excess power, which currently is exported, and to use it for domestic purposes and upgrade it into a higher end product for the country. And Paraguay has three three hydroelectric plant. It's a 100% green green grid. So we are looking at leveraging these domestic electrons. You know, clearly, you're not going to do gigawatt projects in Paraguay. That is not the intention, and that would also would not be right with Hyundai as they need to build the rest of the capacity for the country.

44:41 But we are working completely within what is possible without us having to ask Andy to incur any new investments and leveraging exactly, you know, the the best the best power available today globally at one of the best price globally. And I have one last question from David. Globally, a lot of the larger projects that have MOUs or agreements don't seem to be spending money. Are some of these green hydrogens going to be delayed? So, yes, you know, we we do see that, you know, historically, or at least for the past two years, the hydrogen and ammonia world has been the land of MOUs. A lot of announcements, a lot of noise in the press, which sounds great which sounds great, which looks great for people to take pictures, but not a lot of reality behind even with the large investors. And, actually, you know, the the way we started the company was the realization that a number of very large companies were studying and looking, but very few people were putting their money where their mouth is, including the very large companies.

45:49 So the IRA in The US has accelerated things significantly, and so we are seeing The US taking a real leadership in moving forward. And this this is the region where you will see a lot of the positive movement, but it will be, you know, the usual industries. You know? Let's say the the mosaics, the CF industries in collaboration with Exxon and others. But, otherwise, you know, Europe has been delayed because even though you have announcement and you have a lot of subsidies, which are supposedly available, you know, from the moment you make your application for subsidy until the moment you actually have the money in the bank, it can take up to three years. Right? So as a developer, it takes a lot of time. If you look at The UK example, if I were to do a new wind farm to connect it to a hydrogen and hydrogen to ammonia project, the permitting takes almost ten years.

46:43 The the other side is a lot of projects are looking for perfection because their cost of power is so high that no matter how much the amount of subsidies that you have, if you are paying a $150 a megawatt hour for your power, it makes zero sense to start up an electrolyzer. Right? So it does make sense if you are, you know, below $50. But at the current prices and at the expected prices because, yes, the gas powers is the gas price is very low today, but it's expected to go back up in the winter, should the coal season materialize. Again, it makes no economy of no sense. So a lot of these projects have been delayed whilst a lot of capacity has been built into manufacturing of electrolyzers, for example, which for us puts us into a great position because we are in a position, thanks to our advantageous position in the country between having baseload power for Monday and the competitive cost, which is a regulated cost in the country, enables us to move fast, faster, and and gives us an arbitrage that you have a number of projects which have been on hold, and you have a number of EPC procurement, engineering companies, electrolyzer manufacturers who had built capacity but don't have an outlet of sale, which is obviously for us. It puts us into a very strong advantage to deliver at a lower cost than what everybody else has been looking at and deliver faster than what any other competition is looking at, which is why the

48:15 industrial and fertilizer sector is taking us very seriously. And this is also why Baker Hughes came in as an investors because they have seen every single project in the world, and they know where do we sit in that merit order and how quickly ATOM has been moving compared to the entire competition. So I think I'm done with all of the q and a. Olivia, yes. Yes. I think you actually managed to address every question from investors. And, course, the company will review all questions submitted today and we'll publish those on the the investor meet company platform. But perhaps just before redirecting investors to provide you with their feedback which is very important to yourself, could I just ask you for a few closing comments? So I think the the the the closing comment I will make is first of all, to thank our shareholders. We we've been, I think, very encouraged by the support that we have had so far. And, obviously, this is all both new shareholders and and old shareholders.

49:10 We have we are moving you know, ATOM is moving moving fast. We will continue to move fast, but always in a very methodical way. So expect us to continue to develop projects the same way you develop very boring infrastructure projects, which are step by step. And, and we don't want to do too much. We do what is necessary to be credible, and so that the market can see that, you know, we are trying our best to deliver on time, on budget. And I think I'll leave with a little bit of a marketing blurb, you know, now that we're gonna do CAN. And as we talk to the fertilizer market, they say, you know, you know, can you deliver CAN? And answer is yes. We can. Thank you. Olivia, thank you very much for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected 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, so I'm sure it'll be greatly valued by the company. On behalf of the management team of ATOM Energy PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.