Jesus the Passover Lamb

In John 1.29, John the Baptist identifies Jesus as the "Lamb of God that taketh away the sin of the world".

This appears to clearly teach Penal Substitutionary Atonement since the audience would have immediately thought of the lamb of Passover, but the phrase "takes away the sin of the world" would sound like the day of Atonement.

How does Jesus "take away the sin of the world"? He died in our place the death we deserved.

Let's look at all these concepts.