The fertilizer industry is a significant source of greenhouse gas emissions, driven largely by fossil fuel-based ammonia production. With long-lived infrastructure and high investment costs, the sector faces structural barriers to adopting cleaner technologies. Without dedicated support, it will remain locked into carbon-intensive practices undermining global climate goals.

The project aims to reduce emissions in fertilizer production by constructing and operating a green fertilizer facility powered by renewable electricity. The facility will produce green hydrogen via electrolysis and use it to manufacture low-emission calcium ammonium nitrate (CAN) fertilizer, enabling a shift away from fossil fuel-based inputs. It will also showcase a viable pathway for decarbonising fertiliser production at scale, potentially helping to unlock future investments across Latin America.

GCF will provide USD 50 million in concessional finance to reduce the project’s cost of capital and support market competitiveness. The project includes a technical assistance component, led by IFC, to promote replication by developing open-access guidelines for financing green fertilizer projects, focusing on gender inclusion. Its large-scale demonstration effect positions it as a catalytic step toward decarbonising fertilizer production across the region.

ATOME Villeta Green Fertilizer (AVGF) Project

<p>Project information is sourced from Green Climate Fund. Please check terms of use for citation and licensing of third party data.</p>

Project

Paraguay

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ATOME Villeta Green Fertilizer (AVGF) Project

Target

Policy instrument

Risk

Impacted group

Just transition

Climate justice

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance

Adaptation Fund

Climate Investment Funds

Green Climate Fund

Global Environment Facility