(Alliance News) - Atome Energy PLC on Monday said it has entered into an understanding with Puma Energy Paraguay SA, with a view to negotiating potential hydrogen projects in Paraguay.

Atome Energy is a Leeds, England-based company targeting green hydrogen and ammonia production in Paraguay and Iceland through its subsidiaries, Atome Paraguay and Green Fuel ehf.

Puma Energy is a Paraguay-based company dedicated to the import and distribution of fuels and lubricants. The firm operates three terminals and supplies fuel to around 200 service stations.

Potential transactions under the memorandum of understanding include: testing and running clean fuels on trucks that transport Puma's fuel; the development of a clean energy supply corridor along Puma's service station network; storing and dispatching hydrogen in Paraguay; off-take agreements for hydrogen produced by Atome for mobility purposes; and the possibility of testing and running clean fuels on the push boats that provide services to Puma.

"This MoU with Puma provides a non-binding framework to discuss and negotiate one or more definite agreements centering around use and offtake of our dedicated mobility hydrogen production unit across the Puma network in Paraguay," said Atome Chief Executive Officer Olivier Mussat.

Atome shares were trading 3.3% higher at 89.90 pence each in London on Monday morning.

By Holly Beveridge; hollybeveridge@alliancenews.com

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