Atome (LSE:ATOM) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen, and welcome to the ATOM Energy PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the q and a tab that's just situated on the right hand of your screen. Please 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 of the questions submitted today and publish responses where it is appropriate to do so. These will be available via your investor meet company

0:32 dashboard, and we will notify you by email when these are ready for your review. 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. And I now like to hand you over to CEO, Olivier Massa. Good afternoon, sir. Good afternoon, and thank you very much for your time. Alright. So thank you everybody who has joined. I know many of you are investors in ATOM, so thank you very much for your support. And, well, I guess the last time we were presenting at investor meet was around January. So in the past four months, quite a number of things happened. So I will go into the presentation and essentially, you know, explain, obviously, for those who don't really know who we are yet, the story of ATOM, but more importantly, sharing the update. So ATOM, it's you know, the idea is to invest in the production of green hydrogen and green ammonia, especially.

1:33 And these are essentially the commodities of the future that we are investing in today. Ever since we listed, some of you may remember, we were awarded the green economy mark from the London Stock Exchange, putting the emphasis that everything we do is indeed green. We also joined The UK's hydrogen association, but the little logo you see on the left of the presentation, it's the one of the International Fertilizer Association. Obviously, ammonia is the basis for fertilizer. This is the equivalent of the International Energy Agency. And for us, the big focus is really around the production of green ammonia from a fertilizer point of view as well as energy. So you will have the usual disclaimers.

2:19 And if I can also please note that the presentation that you are going about to see is available on ATOM's website as well as the analyst report from SP Angel. So the quick summary, it is you know, we are now fast becoming a world leader in green hydrogen and ammonia because of our strategy around fast track projects. We've the idea that we'll have first income in early twenty twenty three with our mobility project. Obviously, for us, it's all about having exposure to the future of green hydrogen and green ammonia on the production side. And, clearly, with our projects, we are going to have more more and more news flow coming out as we continue to progress our project. And, actually, there was a significant pro progress, which we announced two weeks ago, which was the 60 megawatt power purchase agreement with Hyundai on the Vigeta site, which we will go and discuss a bit later. But this is in addition to the 250 megawatt project that we were discussing earlier.

3:30 So, of course, the idea is because we have significant power available today, we know exactly what is going to be the future price of the electricity we will be using. We we already have existing infrastructure in place, and this will allow us to take the most advantage of the increasing disconnect that we are seeing in fuel and energy prices, which are rising extremely fast, as well as fertilizer prices, which is causing some really large issues, especially around food security. We have also announced about a cup a couple of months ago that we were starting ATOMobility, which is hydrogen for transport in Paraguay. You know, some of you may not know that Paraguay is one of the most forward country as far as green energies and as well as greening its its transport sector for what is called electromobility.

4:23 So being able to invest quickly into that side of the business was quite key, and it will generate first revenue in early twenty twenty three. And as you may have seen, we have already contracted ATOM, which is one of the world's largest engineering firm in the world, to help us put this and the engineering together. And, of course, it's not just about Paraguay and Iceland. It's about being able to build a a pipeline of projects and also having a a number of options around the monetization of our projects, you know, whether we're talking about, you know, working closely with the off takers who will want to have access to the molecules that we will produce as well as, you know, farming out, farming in into our project. So the investment case, again, it's about you know, we are the first and still the only company listed on the London Stock Exchange, which gives investor exposure on energy and food security and green molecules, which is a market which is is fast growing.

5:26 You already have one company in on in the Euro next called Hydrogen de France, which was listed last summer. It's valued at around €400,000,000. There's another company focused on France and Europe, which is currently going through its own IPO in Europe called the Life. But, you know, if you want access into to these markets in The UK, we are still the first and only one which will be a producer of green molecule. And it's all it all is around the access to existing power, cheap power available twenty four seven, and green power, which is even more important today. Some of the, you know, less specialists probably not aware of it, but actually today with the issues we are seeing in the supply chain, the cost of solar panels and the cost of wind turbines is is going up, which will increase the cost of of future energy whilst we are relying on existing infrastructure which have excess power today.

6:28 We're also technologically agnostic. So if you remember from some of the early presentations, we have the access to three different technologies, which is alkaline existing for the past eighty years, PAM, which is where ITM is, which is very relevant when you use solar and wind power, but, you know, less needed when you look at hydroelectric and geothermal power, which is stable baseload power, and SOEC. We are also importantly situated in stable countries, democratic countries, which have a domestic large pipeline of future demand. So export markets are great, but the reality is for us, speed of speed of execution of our project is reasonably sized with existing infrastructure, with an existing market.

7:16 And, of course, it wouldn't happen without having a strong management team, which will I will just go over very briefly later. So again, for us, it's fast track. Right? It's all about being realistic. You are probably reading about the need for gigawatt scale of projects like the one in Australia or the ones in Saudi and Qatar. These will absolutely be needed, but it will take nearly the best part of this decade for these projects to get into production. We are offering a proposal, is essentially going to be in production on the mobility hydrogen side in 2023 on the ammonia production side, you know, within '20 within h one twenty twenty five. And it's not just about hydrogen and ammonia. It's also about we are producing medical grade oxygen, and, of course, we will be generating carbon revenue. And, you know, when we listed, I think the carbon price was in below $50 a ton. Today's carbon price is you know, has a couple of times already breached the $100 a ton of carbon. It is the right thing to do anyways. It's not it's not just about sustainability, but, you know, environmental subsidy sustainability comes full, so financial sustainability, and our projects are quickly being recognized as the right way to do it.

8:33 And we're talking about the 60 megawatt power purchase agreement that we just signed. Again, it doesn't look significant, but, actually, you have to think that today, the largest operating elect green electrolyzer is 20 megawatt. So we already now in progress to go towards front end engineering and design on on a project which is three times bigger than the largest electrolyzer in production today.

9:01 The management, again, very briefly, we were incubating within incubated within an oil company called President Energy, which obviously now we are fully independent from president. We were also created via Peter Levine, our chairman, who has a track record obviously of successfully investing and selling energy companies, but more importantly for us, has a long track record around engineering and construction companies. And we are now now that the PPA is signed, now it's all about execution. I know in this is still a midstream process. This is a margins game. This is all about producing and construction for as fast as we can, as cheaply as we can, and as efficiently as we can. So that ethos remains within ATOM.

9:51 My background was in engineering starting delivering power on the power sector, then on the oil and gas sector. And for the past ten years, I was with the IFC, so which is the private investment arm of the World Bank, covering all around energy, both from fossil and renewable and all around equity and and debt. But more importantly, in a way, it's all about the combination of what we bring. And Jim Spaulding, who is our president in Paraguay, and is really showing that, you know, being on the ground is the it is absolutely key. And it is this discussion that the team is having every single day with Andy, the power supplier, with the various government organization to ensure that our our projects are on the fast track. We'll we'll be able to stay ahead of any regulatory issues and also spotting the opportunities like the 60 megawatt power purchase agreement.

10:50 We also have myros who, in the same vein, has been invaluable for us to be able to have now very advanced discussion with some of the world's largest suppliers of electrolyzer suppliers and as well as the ammonia synthesis loop so that we are able to have a real line of sight on the supply, on competitive bidding, and and, of course, you know, on ensuring that we use the best technology at the best price within the best delivery date. And finally, Siggi, who is the CEO of Greenfield in Iceland, who very importantly comes from the shipping and fishing side, which for us, the real future and the real upside for Iceland is not only just delivering to to European markets, but very importantly, to take advantage of the shipping market, which is going to switch to use ammonia as a shipping fuel.

11:54 So hydrogen, you will remember, it was all about, well, now is the right time to for hydrogen. Well, actually, now is the right time more than ever. It is the what we are seeing is that since the IPO, you know, the price of hydrogen, natural gas, carbon, oil has skyrocketed. So the need to have green hydrogen produced ASAP is more important than ever. Clearly, transport is having issues. We see, obviously, as well, we've had discussion on the on the metal side where you see a number of smelters worldwide, which are being forced to move towards hydrogen. And, of course and I cannot undersell it. It's really on the food security side, and hydrogen is the basis to be able to produce green ammonia.

12:45 So the size of the price is huge. Right? We it's all about being able to displace 25% of the world's energy by 2050, and we need to stop now. Right? It's what is called the $10,000,000,000,000 market opportunity. And when you put in perspective that today, the total production from green electrolysis is around 400 megawatt, and we are going to go very quickly into the gigawatts. It gives you a sense of how much work needs to happen and also how everybody has a role to play no matter how small, And but more importantly, it has to be quick and done quickly. And I will spend more time on the ammonia side. Again, you know, that might not be ease the easiest to watch on the screen, and, you know, please refer back to the PowerPoint on the website.

13:32 But we have to know that to produce ammonia, you essentially take electricity water that creates hydrogen. With hydrogen, you you run it through you run a process which strips nitrogen from the air. You mix hydrogen nitrogen, you create ammonia. And high ammonia itself, it's the world's second largest chemical produced in the world. It is it is 99% based from hydrocarbon natural gas, which means that actually its forward price is based on the forward price of natural gas. And whilst when we started the the thesis of ATOM nearly two years ago now, the price was under $500 a ton. When we listed, the price was under $750 a ton, and today, the price of ammonia has reached $1,500 a ton.

14:27 And if you look at the graph, you see on the future price of gas, you see that actually all the way to 2025, it is very easy to see that the price of ammonia itself will remain at or close to a thousand dollars a ton, assuming nothing else changes from where we are today. And where we are today is obviously the function of what's going on in the economy, what's going on in the supply of energy. And as you remember, we have a push for going green. A number of oil and gas companies have less and less easy access to funding to go after oil and gas exploration, which means that all the time, there will be less and less oil and gas available and gas to be able to create ammonia. So that's one side, which is a supply issue. And the other side, which is a market issue, well, ammonia can be used in a multitude of ways. Up until today, it's the largest use of ammonia has been in fertilizer, But ammonia can also be used for transporting hydrogen because what you need to do to transport hydrogen over long distance is you need to transform hydrogen into ammonia, which is a better molecule to manage. It's also more energy dense, and then you would go over the very long distances. And at destination, you transform it back into hydrogen.

15:43 It can also be used as an energy source. So we are seeing people like like, working very proactively to transform ammonia to be able an engine a marine engines to be able to use ammonia as a fuel and as well as on the power side where a number of power stations in Japan, in particular, are either being dedicated to be running on ammonia or actually you can act you can find ways to use ammonia in coal fired power plants to be to reduce the carbon footprint of ammonia. But and so so you got you get into that space where up until now, all of the demand for ammonia was mostly agri, and then suddenly, the same molecule is going to have to fight for transport market, for the energy market.

16:33 And that means that the need for that molecule will grow bigger, therefore, create more tension into the market. So and now you have a macroeconomic reality is that we have to remember that 30% of fertilizer supply and crop supply comes from Russia, Belarus, and Ukraine. So if suddenly you take out 30% of a supply, which is already quite stretched, you can imagine that we need to diversify the source of ammonia becomes quite important. So, again, it's not just about being green. It's about being able to supply molecules which are actively needed not only for energy security, but also for food security.

17:21 So for us, it's all about being able to deliver these projects quickly. And, you know, you will remember from our presentation, the Paraguay projects where why does why is Paraguay an interesting and actually the best place is this is the Itaipu Dam. It's the second largest hydroelectric dam in the world, jointly owned between Brazil and Paraguay. And it means that, actually, you have a large amount of excess power available today in Paraguay and to be able to use to produce green molecule. If you look on the top left of the picture, you see Brazil, and as we were talking about food security and access to fertilizer, Brazil is the world's largest importer of fertilizers.

18:07 That's one thing. The other side is Brazil's single largest provider of fertilizer is Russia. So you can imagine the tension that you have in a country where which is in desperate need for fertilizer, and Paraguay itself is the fourth largest exporter of soybeans, so a very large agricultural country by itself. So it's all about finding ways to use that energy that you have in the country and to benefit to have domestic molecules create domestic electrons because a import bill of fertilizer, which was just under $500,000,000 in Paraguay in 2019, is fast approaching $2,000,000,000. So it's it's a clear need to keep to be able to keep the economy of Paraguay competitive, to keep the the cost of food low, but also to to be able to export in in in its neighboring countries.

19:04 From a risk point of view, on a credit risk point of view, actually, Paraguay is a very stable country. It has it has weathered the COVID storm very well, and actually, it has improved its pitch and S and P rating. It's now rated at double b plus. And from a macroeconomic point of view, as far as the country, they have clear climate commitments. You know, they they already one of the greenest country in the world from the energy generation side, but they need to green agriculture. They need to green transport. So they understand that it's they they are fully aligned with what we are trying to do. Therefore, they are fully aligned in us trying to accelerate our projects, which is why Vigeta came. And if when you look at this picture and you see the bottom right, this Vizheta is actually the site of, you know, an industrial port in about 30 kilometers south of Asuncion, the capital.

19:59 It is one of the port where you have it's a where you have an industrial complex, when you have some of the largest fertilizer and cement companies in the country, which import and export goods from. So it means that for us, again, it's all about being in a place where you have existing infrastructure that we can leverage so that we reduce the risk on risk, and then we only have to take care of building the electrolyzer and the ammonia loop and then obviously some storage. Where today, there there was this this on the bottom right, the 100 megawatt substation, which was recently commissioned by Hyundai. When they approached Jim and the team, you know, they expressed that they had just built this, and they had about 60 megawatt of excess capacity and asked if we would be interested because it was really at the heart of our clients and, obviously, clients of the domestic market. But if you look at the middle map of South America, you see that because it's on the Paraguay River, you also have access to export which enables us then, you know, to sell it to Brazil or if we go into much larger quantities in the future, then to go to go hit some of the European or Asian markets, which are again, would be competing worldwide for the molecules.

21:18 But we need to stress that, actually, this is one of these things which is it came in. It wasn't part of the original design. You know, for us, we always thought that, you know, Itaipu phase one, phase two as we had described was going to be the first thing coming out, and this is still completely on track. But then it is because of our relationship on the ground that the team was able to identify this 60 megawatt for us to pounce on today. Again, you know, 60 megawatt is nothing it's not small in any sense of the world. It is significant cash flow we'll be able to generate from 2025 onwards, and it's a great it's a great way to start. Of course, we still have the Itaipu project, which is which is going which is ongoing where we the discussions around the power purchase agreement, you know, are still are still ongoing, and we continue to to progress the project.

22:18 We were looking at, if you remember, phase one, fifty megawatt, phase two, two hundred megawatt. Now we are saying 50 megawatt plus because we will benefit a lot in our phase one. We will benefit a lot from what we are doing in Vigeta and and possibly even look at upgrading phase one if it makes sense at the time. It's all about having a business which is scalable and scalable rapidly. A quick word about mobility. I think for us, it was it came as a request of the government, of course, where they saw the import bill of diesel really skyrocket for the entire industry as well as having to increase the subsidies for diesel substantially.

23:06 So when you look at a country and you are a government who is trying to figure out how to green and how to help protect energy cost, finding a way to use your domestic excess molecules to I mean, electrons to be able to produce energy mon molecule was key. So you are looking at a market for, you know, as soon as you have the capital alone has over 2,000 buses on the road every single day. You are looking at a country which obviously has trucks on the road every single day, which are trucking in and out, you know, the agricultural goods that they are producing. So it's all about, you know, being able to be competitive, to be able to be quick, and this is actually about also creating markets and and finding the best way to create market at the lowest risk possible, which is why I know we hired ATOM as our engineering consultant for the project and also why we use CPH two as an electrolyzer, which we we really like the design of the CPH two electrolyzer, which would had a lot of redundancy built into it, which will, for us, you know, ensure that, you know, even if you have minor operational issues, you're actually able to overcome them overcome them quite life.

24:21 As far as Iceland, you know, obviously, is still is still progressing. You know, the 60 megawatt opportunity that we have may look, you know, may look like everybody looks slower now. You know, we are still on track with two fifty megawatts in Itaipu and as well as as Iceland. You have to remember that for in this project, obviously, what's happening into the global market is always an issue. You know, we are looking at what's happening in the supply chain, of course. But as I described earlier for Iceland, you know, the real opportunity for Iceland, it's, you know, access to the EU market, which is the premium market is one thing, but really it's about finding a way to help make domestic electrons used for domestic molecules. And the shipping sector is particularly important in Iceland.

25:10 When you look at ammonia as a solution to shipping, if you look at this on the comparison of shipping fuels, you look at where you are today. Obviously, there's the fossil fuel based heavy fuel oil. That is that is what is used, obviously, worldwide. It takes it is easy to store, easy to manage, and use all across the value chain. The world thought ten years ago that shipping would move to LNG, and, actually, it really didn't that progress that much. So it did take some market share, but not a huge amount, which leads three green fuels available. So one of them being methanol, which is lower carbon, which takes twice as much tank volume as fuel oil, but is able to be stored from an ambient temperature. The problem is methanol still produces carbon when you burn it, so it's not a pure zero carbon fuel.

26:07 You also have the discussions around full hydrogen shipping. But then the problem with hydrogen, it takes a lot of space in the cargo hold. And in shipping, you only make money as according to how much you can carry as far as goods. But also, as a temperature level, it needs to be at minus 253 degrees Celsius, which makes it very complicated to manage. So the only realistic zero carbon fuel that you have in a way is really green ammonia, and it's easy to manage. It's minus 33, 34 degrees Celsius exactly like liquefied petroleum gas. Yes. It takes a bit more more more more volume into the tank. But for a number of applications, especially around shipping and fishing in Iceland and all across Europe, if you really want to a zero ship zero carbon shipping, green ammonia today is still seen as the the best way.

27:06 So we are obviously watching very closely at what's happening there. It is a trillion dollar market opportunity for shipping. So

27:20 as far as Iceland, you know, as we described earlier, you know, we we expect to have a two phase production. We are looking at a phase one at around 30 megawatt and a phase two at 70 megawatt. We have a number of discussions from the technology side to the offtake side. And actually, as you will have seen, especially in the EU, there's a very fast accelerating push on access to green hydrogen. So the project still continues, and we continue to go ahead towards towards construction and signing the our first power purchase agreement. So as far as the summary, so essentially, we are very pleased that today, we've we've we are essentially on track on everything we had promised at IPO. And, actually, we are going a little bit faster when you look at the 60 megawatt project.

28:09 We will commence production on the mobility side, so early twenty twenty three, which means early twenty twenty three cash flow. But very importantly, it's for us being on the track to get to final investment decision by the end of this year and obviously entering FEED this summer. It's all about taking care taking advantage of this increasing disconnect that we have between the supply of hydrogen and ammonia, and especially ammonia, and and the demand, which is growing much faster than the supply side. So you can expect over the next few months to see more more news coming out from ATOM. You will see us appointing an owner's engineer to lead the 60 megawatt project.

28:58 You will see us selecting who will be providing the front end engineering and design and, of course, the technology. You will see also announcement around who will be the offtaker for our first project. Obviously, this is quite important, and we have we are having live discussion with a number of, you know, global traders who are very active in the Latin American market, both for the ammonia as well as the carbon credits. And you may see, obviously, you know, early monetization opportunities as we are seeing increasingly a number of green infrastructure funds of energy companies who, again, are trying to play catch up in in this game where there is a lot more demand for green ammonium, green hydrogen coming up than there is supply.

29:49 And with this, I think I my presentation has ended, and I open the floor for questions. Olivier, that's great, and thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated in the right hand corner of your screen. But just while Olivier takes a few moments to review those questions submitted already, I would 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. Olivier, as you can see, we've received a number of questions throughout today's presentation, and may I thank all investors for submitting their questions. If I could please just hand back to you to run through that q and a tab and where it's appropriate to do so, if you could read out the question and give your response, and then I'll pick up from you at the end. Thank you. Absolutely.

30:35 And so I will go through a couple of questions. I'll try to go for as many questions as we can. That's also why I try to run through a pre presentation quickly. So quite a few around the market. So a question from ATOM f about what is the appetite for potential counterparties for long term ammonia uptake, and how far does the forward market stay liquid? So if you remember on one of the earlier slides about where we see the forward curve of of ammonia, and and this is just not us. Right? This is this is data published by Moody's, by the IFA, by others about where where the market is going.

31:22 So what what we are seeing is and what we are hearing as it's a very, very fast evolving market is we we have international fertilizer traders which are rated, you know, a plus, double a, which are able to enter into contracts where they would say they will offtake all of your production for the entire length of the project. After that, it's a question of also, can you protect the price as I, you know, create a flow on on how what is the long term price they will give you on a very fixed basis. So we are hearing, and I don't I don't have, you know, hard evidence on that. This is just discussions we are having in the industry, that there are players today who are actually offering fixed price for the next ten years and plus for the offtake of ammonia going into the European market.

32:13 So that's a very obviously, quite a strong signal and and really showing that it's all about trying to figure out where it's going to be with supply in the long term. Just as an example, you know, the crops being, you know, being being grown today and the fertilizer that is being used today actually was ordered two, three years ago. So it's actually already quite a long market. So you have a very active spot market, but you also have a very, very active long market. The other question on from Adam was, you know, do we see an opportunity for synthetic e fuels over the ammonia? So yes. And and that's the advantage of ammonia and hydrogen is these all can be considered as base chemicals. So I I've mentioned earlier methanol. You will have seen, you know, Maersk has made some large announcements of of trying to build an ammonia fuel ship fleet actually focused on Asia.

33:09 You will also have seen that it's actually possible to create e kerosene. You need to find carbon to to mix to mix, but it is actually possible. And and these things are growing fast, and not only does the International Maritime Organization forcing the shipping industry to green its fuels, but also the aviation industry is also being forced to green its kerosene. There's also, we have a, you know, another question about, you know, do we that do we think that the Asia renewable hub being built in Australia will have a positive or negative effect on ATOM. So this is in reference to a project which has been incubated in it by Intercontinental where there there was a leak a week ago that out in the press that BP was actually farming into the project ahead of the feed process.

34:11 And in that, what was published, again, I'm not you know, you can look for it online, was that the the the feed will end by 2025 and then start construction to to have production at the end of the decade. So from our point of view, it's really good news. Right? It's all about having a larger market coming up and and proving at scale that you have large energy companies who are indeed looking at projects and coming in even before the FEED process. So assigning value to, like, these projects and when you haven't even gone into FEED. So what we see is just that you're gonna have, obviously, the acceleration of that move about energy company, green infrastructure funds looking for opportunities, and, you know, we are having live discussions with everybody today. Right? It's not just about investors.

35:02 It's about the future conversation with future off takers and conversations with with future investors at the SPV at the project level. And and the final point I would make, also, it gives us some real hard data that these gigawatt projects are not going to reach the end of FEED before 2025 at best. But at this time, we would already be producing, and we will already starting production and construction on the next set of on the next phases of ammonia. So I think it puts us in a very, very strong position. There was a question from Mark on a news flow perspective. What should we expect to hear in the short term? So as I mentioned earlier, owner's engineer is commencing the FEED process, having the discussions, and and contracting the offtaker who will buy on a long term basis the ammonia, and obviously getting into a final investment decision.

36:04 And in the meantime, talking about possible financial partnerships, investment partnerships at the project level. Yep. Okay. Let me continue going through the list. So we have a so we had a question about trade details for ATOM includes a vast number of tiny transaction, and and it's assumed that people selling the distribution shares from president, but that factor must be long over. And, you know, do do we have a view or do do our brokers, advisers have a view of why this is happening? It's it's very tough to explain. It is I think it's a great thing for us to see that the liquidity in our stock has increased significantly.

36:53 Yes. You do have a number of very, very small trades, at the same time, we see an increasing number of large trades. So I think it's proving the concept that investors are seeing that between the power purchase agreement that we have, between the price of ammonia going up and having a much nearer sight on essentially, you know, production targets, liquidity events is increasing the appetite in in ATOM. We have a question also on how much whilst the money raised at IPO covers the project, you know, how will they be funded? So indeed, when when we went and we raised at the money at the IPO, so we're, you know, our target and what we achieved was on the £9,000,000, it was all about ensuring that we would have enough money to get to final investment decision on the original Iceland and Paraguay projects. And, actually, we built a lot of buffer to have to have enough cash all the way till the end of twenty three because when we were raising, it was in the middle of Omicron, and we couldn't really predict, like, the volatility of it.

38:04 So what we have is actually we have more than enough cash in the bank to get to final investment decision, which is really where the value of a project is crystallized. You know? Probably didn't discuss enough about it earlier, but, actually, signing the power a long term power purchase agreement like we have is 70% of about seven zero. It is really two third of the work is already done into having a real project Because now it's not a, you know, you know, can we go to FID? Should we go to FID? We already know that we are going to FID. Now what we're trying to figure out is, you know, exactly how much what are the delivery timelines going are going to be and where we can optimize, obviously, not only the cost, but also the sources of financing.

38:50 Because these will be well, these can be financed and will be financed on a structured finance, project finance basis. So we are already discussing with the usual suspects for Paraguay, for example, which will be your, you know, your IDB, your CAF, your World Bank, IFC, which are very focused on investing into green and providing financing for green infrastructures, but also on the lender side. You know, we you have you know, the market is quite deep, whether it's Societe Generale, whether it's it's it's an ATOME and in in some of even some of the larger investment, you know, investment banks like Goldman Sachs are very active in Latin America to finance these projects. So the other side, of course, and as I mentioned earlier and in the previous presentation for us, it's not just about keeping a 100% of a project. It's, you know, Iceland and Paraguay will have their own SPVs because they attract different categories of investors.

39:44 And this is where for us, it's all about being a developer of project, but an operator of projects. So as we reach FID, we will have a number of options, which is obviously reaching to the structured and project finance, reaching to the concessional funding that the World Bank and ITPs can offer, reaching also to the traders because we have a commodity which which is in a high demand today and a trader which wants our supply for the next ten to twenty years will obviously, you know, try to find the competitive edge within its competition and being able to provide value upfront. And, of course, more importantly, having these green infrastructure funds who have much more funds, which is allocated to invest at the project basis at relatively low infrastructure IRRs and which then we can bring into the project.

40:36 But, thankfully, because we are listed company, we have access to investors and to the markets, our value will be recognized as such. So we have a question from James c. How comfortable are you with a relatively immature electrolysis technology? Does that increase overall project risk? So, actually, because we have access to hydroelectric and geothermal power, this is base load power. So we are able to use alkaline based technology. An alkaline based technology has been existing for nearly eighty years today, and and it is produced, you know, in Europe, in The US, in China as well. So you actually have a wide array of existing electrolyzers expect expertise, experience, which have been in operations for a while.

41:27 On the ammonia synthesis, this is a 100 year old process, and, actually, it's the same synthesis that you would use for producing hydrocarbon based ammonia. So, actually, the bigger you go, the more competitive you get. So for us, we are obviously actively looking at new technologies like SOEC, which isn't yet proven in the tens of megawatt scale, but offers much higher efficiency. So when this becomes available, we will and, well, it is available today, but we still consider it to be a bit on the higher risk side. We will absolutely using it and ex especially for the phase two of the Icelandic project because its ability to convert electrons into molecule being 30% more efficient means 30% more income in the bottom line.

42:17 We have a question. So is there an opportunity to scale up Paraguay and Iceland beyond the announced projects, and where else in the world are we looking? So is there an opportunity to scale up in Paraguay? Absolutely. You know, there is if you look at the Paraguay opportunity, you know, this is a country which today only uses less than half of its allocated seven gigawatt power from Itaipu. So they are indeed more opportunities to grow. Right? But it's all about making sure that we would build at the right place with the right infrastructure. So for us, it's all about the speed to market and proving to update our partner on the power side that we can build, we can do things fast, and we honor what we say we would do so that then the next large and larger contracts will come. We will be the natural partner to go into the next 200,300 megawatt.

43:15 When it comes to Iceland, yes, you know, there are a number of power suppliers in Iceland that we are talking to, And there's a big opportunity which is a bit further out in Iceland, which is, well, once once there will be regulation in place to do wind power in Iceland, that is the really the way when the country could go from producing the tens and below hundreds of megawatts of hydrogen into the gigawatt scale. So we are certainly looking at it, and our our team in Iceland with green fuel, obviously, is completely on top of it. Now are we looking in other places? Of course. It's you know, we are valued on our projects, but also on our ability to deliver projects and and a pipeline. And since we've been listed, because we are in a unique position, we've had a lot of incoming from different project developers who who may not have all of the things, you know, they have the they have maybe two or three things right, but another three or five are missing.

44:11 So we are evaluating these opportunities today. They are increasing. You may have seen, especially in the European context, that a lot of emphasis is going to be put around the supply of green energy from Mediterranean renewable energy supply because it makes, you know, total sense to be exporting energy in the form of molecule rather than trying to build a massive electric cable, let's say, from Egypt to Europe. And, of course, the Asian market is extremely extremely active, and we are looking there as well. And it's all about finding exactly what we have today, which is the right people on the ground in the right environment and an ability to deliver projects very quickly.

44:59 So a we have a question from David m. How do you expect the grain subsidy market for the green hydrogen producers to evolve this decade? Well, actually, it is it is evolving pretty quickly. If you have if you are a producer in France and in Europe in general, there's already a fair amount of work being done, and the EU is coming up with new guidance later this week. We have seen in The US in the first Biden infrastructure plan, a subsidy of up $3 per kilogram of hydrogen, green hydrogen subsidy. And even in my old shop at the World Bank, you know, we we were very active in Chile to provide a form of subsidy on the purchase of electrolyzers.

45:48 The advantage that we have is because we have access to some of the world's cheapest stable power. Our requirement for subsidy is is low to nonexistent. But, actually, if it is available, we absolutely will use it. Right? That that that just wouldn't be responsible from our point of view. And we have projects which are very much aligned with what these institutions are trying to do, not only because it's the right thing to do on the green side, but it's the right thing to do on the energy supply side, and it's the right thing to do on the food security supply side. Trying to find if I missed any question. So we have a question about, you know, IOCs, so international oil companies, diversifying and expanding their green pipeline.

46:46 What impact do you see on ATOM? And, also, what stops such competition from coming and using Paraguay's renewable energy now that you have put it on the map? It's it's a very fair question. Right? It's the reality is, I think, Paraguay was underappreciated because a lot of international developers have been focused, we think, on the wrong thing. They were always focused on producing large amount of hydrogen at scale to export. And and we've seen a little bit of a shift when we're realizing that, you know, you need to create the market, you need to work before you can run, and which is where our strategy of being smaller scale using the domestic market first, which is a domestic market, which is stable, which has which is on dollarized economy was the right thing to do.

47:41 But what we are seeing, especially from an IOC point of view, when we discussed earlier the Asia renewable hub, is, you know, if you're an IOC, you're not going to spend a lot of amount of time doing the project development. But once the project gets to FID and you have line of sight to the 100 megawatts, then you let somebody else like us do some of these hard miles, get the project through concept, through proof of concept, through financial final investment decision, through the contracts, and then they would come in, obviously, at a much higher valuation than what we are we would be. But it gives them line of sight on near term large scale production, which I think, you know, from a use of time and money makes total sense in an IOC, which may may not be chasing the higher returns that we are chasing, but it's chasing scale.

48:43 So I think I am pretty much done with the questions now. So unless anything else comes or I have missed anything, let me just go through the chat quickly. No. I think that is it. So Olivier, that's great. And thank you very much indeed for taking the time to address all of those questions that you can this afternoon that have come in from investors. And, of course, if there are any further questions submitted today, we'll make these available to you immediately after the presentation has ended for your review, and we'll publish all those responses where it's appropriate to do so on the investor meet company platform. Olivier, perhaps we're redirecting the investors on the call to provide you with their feedback, their thoughts, their expectations. If I could please ask you just for a few closing comments to wrap up with, that would be great.

49:30 Thank you. So I think the closing comments is really well, there will be many. So first of all, thank you for the investors who have trusted us. We knew when we were pushing at the IPO time that it was, you know, it was seen as as aggressive, and we have delivered. You know, we have delivered on the projects. We have delivered more than what we said we would deliver, and the share price has also delivered. And it's only the beginning. So this is really the thing to expect over the next few months with us. It's all about going continuing to prove that the value we will be creating over the next month and years is is going to be something that is going to be tangible for investors, tangible for us, and and watch us very closely as we announce owners engineer, feed technology partners, offtake partners, and obviously, all the way down to final investment decision, and not only on but the other projects.

50:36 So continue to watch us closely. It's going to be very exciting over the next few months. And and, again, it's it's it's it's great to be in a position to speak to everyone from a a very strongly performing, not only environment, but share price. Olivier, that's great. And thank you very much indeed for taking the time to update investors this afternoon. 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 ATOM 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.