Plug Inks MOU with Allied Green Ammonia for 3GW Electrolyzer Supply

Plug Power Inc., a prominent player in holistic hydrogen solutions for the green hydrogen economy, has revealed the execution of a memorandum of understanding (MOU) with Allied Green Ammonia (AGA), an Australian firm specializing in green ammonia production. The agreement aims to provide up to 3 gigawatts (GW) of Plug electrolyzer capacity for AGA’s planned hydrogen-to-ammonia facility in the Northern Territory of Australia.

After the signing of the MOU, Plug and AGA intend to proceed with an agreement, as indicated in the MOU, to commence a Basic Engineering and Design Package (BEDP) for the 3GW capacity project. The BEDP is anticipated to progress by mid-May of this year, with the final investment decision (FID) targeted for Q4 2025. Subsequently, the gradual delivery of the 3GW electrolyzer supply is scheduled to commence in Q1, 2027.

"Ammonia producers have acknowledged the significant benefits in cost reduction and carbon footprint reduction through electrolysis-based hydrogen," stated Andy Marsh, CEO of Plug. "We are excited to formalize this MOU and collaborate with AGA. Our experience in building and managing large-scale hydrogen production facilities, along with our PEM electrolyzer manufacturing capability to back their 3GW project, positions us perfectly as the preferred partner for this initiative."

Alfred Benedict, Founder & Managing Director of AGA, expressed, "Our collaboration with Plug adds to a prestigious lineup of global leaders who are partnering with us in our endeavor to construct one of the world's largest green ammonia production facilities, strategically positioned in Australia due to its proximity to Asia. This agreement, underscored by Plug's unparalleled expertise and complementary technologies, signifies a robust vote of confidence in our capabilities and marks a significant milestone in the development of Allied Green's facility, which aims to set a benchmark for energy-efficient green hydrogen and green ammonia projects worldwide. With our proven track records in delivering clean energy infrastructure, this agreement marks a pivotal initial stride and underscores the alignment of our visions to offer tangible solutions that facilitate the global transition to net-zero emissions."

The green hydrogen generated by Plug's electrolyzers presents a means to decarbonize the ammonia production process by replacing Steam Methane Reforming (SMR) methods. Apart from its environmental benefits, Plug's pressurized (40 bar) electrolyzer reduces the need for downstream compression and the oxygen derived from electrolysis-based hydrogen can boost efficiency in industrial power plants and furnaces owing to its capacity for high-temperature combustion.

The production facility by AGA will run a green ammonia process with a capacity of 2500 metric tons per day (TPD). Leveraging abundant renewable energy resources and robust energy infrastructure, the chosen site at Gove Peninsula is strategically situated to align with Asia's trading connections. Geographically positioned to accommodate AGA's targeted customers' increasing demands, the facility ensures a dependable and protected source of green ammonia from the region.

Plug is a prominent manufacturer of PEM electrolyzers and presently manages the most extensive PEM electrolyzer deployment in the United States at its 15 TPD Georgia Hydrogen plant. This declaration comes after Plug's recent BEDP contracts, amounting to 4.5 GW across the United States and Europe.

Plug's electrolyzers employ electricity to generate hydrogen from water molecules through electrolysis, a process that yields only oxygen as a byproduct. This stands in contrast to traditional steam-methane reformation (SMR), which extracts hydrogen from natural gas, resulting in substantial greenhouse gas emissions.