A pioneering Green Climate Fund-financed project to establish one of the world’s first commercial-scale green hydrogen-based fertilizer plants has taken a big step towards implementation.

The Green Climate Fund (GCF) and its partner, the International Finance Corporation, signed financing documents for the Villeta Green Fertilizer Project in Paraguay, developed by ATOME PLC, at a ceremony in the country’s capital, Asunción, on 13 March. 

This flagship investment in green hydrogen and the fertilizer industry supports Paraguay’s goal of transforming its abundant renewable energy into higher value-added industrial production. The financing is set to create jobs, strengthen fertilizer and food supply resilience in key agricultural inputs, and advance industrial diversification.

Kristin Lang, GCF Director, Department of the Latin America and the Caribbean Region, said: “The ATOME Villeta Green Fertilizer Project represents a paradigm shift in large-scale green fertilizer investments in emerging markets. It is also one of GCF’s landmark investments in industrial decarbonisation. This innovative project will strengthen food security, as well as transform the regional market in fertilizer by reducing imports from outside of the region.”

GCF’s USD 50 million junior loan is set to mobilise more than USD 500 million in additional finance, demonstrating how a blended climate finance approach can mobilise private investment into emerging green hydrogen markets. The ATOME project sets a market precedent, potentially unlocking similar investments across the region.