Macquarie Asset Management announced an investment of up to $325 million in Swiss green nitrogen fertilizer company Atlas Agro, Aimed at supporting the company’s growth, and vision to provide a sustainable alternative to conventional fossil-fuel based fertilizer products.
Production of fertilizers such as nitrogen is an energy intensive process that, when it uses fossil fuels, contributes an estimated 2% of global greenhouse gas (GHG) emissions.
Founded in 2021, Zug, Switzerland-based Atlas Agro is building industrial-scale green nitrogen fertilizer plants in the U.S. and Latin America that will use green hydrogen in the production process, and aims to produce carbon-free nitrate fertilizers locally in agricultural regions, using only air, water and renewable energy as inputs, thereby displacing imported products that have a significant carbon footprint from both production and transportation. According to the company, each of its factories will reduce CO2 emissions by approximately 2 million tons per year.
The investment will come from the Macquarie GIG Energy Transition Solutions (MGETS) fund and enable Atlas’s expansion into the U.S. and Latin America.
Petter Østbø, CEO of Atlas Agro, said:
“Macquarie Asset Management, with their experience in projects and infrastructure, ability to initiate support investments with a wide range of expertise and their ambition to accelerate decarbonization of hard-to-abate-industries, is an ideal partner for us as we approach construction of our first plants in the United States.”
According to Macquarie, the investment in Atlas Agro is aligned with the asset manager’s next phase of energy transition thesis in the U.S., with green hydrogen being used as a feedstock rather than as an energy carrier.
William Demas, Americas Head, Macquarie Asset Management Green Investments said:
“Atlas Agro has a highly experienced management team with strong credentials and expertise in developing, building and operating fertilizer plants with a reduced environmentalEnvironmental criteria consider how a company performs as a steward of nature. More impact. We look forward to working with the company to fulfill our shared vision to help drive the next phase of energy transition.”