Plug Power to supply electrolyzers for green ammonia facility in Australia

U.S. Plug Power has signed a memorandum of understanding (MoU) with Australian Allied Green Ammonia (AGA) to supply up to 3 gigawatts (GW) of Plug electrolyzer capacity for AGA’s upcoming hydrogen-to-ammonia facility proposed for the Northern Territory of Australia.

Following the MoU, Plug and AGA plan to enter an agreement to initiate a basic engineering and design package (BEDP) for the 3 GW capacity project. The BEDP is expected to advance in mid-May of 2024, with the final investment decision (FID) planned for Q4 2025 and the progressive delivery of the 3 GW electrolyzer supply slated to begin in Q1 2027.

Commenting on the MoU, Andy Marsh, Plug CEO, said: “Ammonia producers have recognized the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen.”

Alfred Benedict, Founder and Managing Director of AGA, stated that the MoU with Plug builds on a list of global firms who are joining AGA on its journey to build the green ammonia production facility, adding that it is also a “strong vote of confidence in our capabilities and a significant milestone in the planned delivery of Allied Green’s facility.”

“Given our respective track records in delivering clean energy infrastructure, this agreement is a critical first step and a testament to the alignment of our respective visions to provide tangible solutions that enable the world to achieve net-zero,” Benedict concluded.

AGA’s production facility will operate a 2500 metric ton-per-day (TPD) green ammonia process, and as per Plug, it taps into “abundant renewable energy resources and strong energy infrastructure.” Moreover, the proposed location of Gove Peninsula strategically aligns with Asia’s trading partnerships, Plug said.

To note, Plug is building an end-to-end green hydrogen ecosystem, from production, storage and delivery to energy generation. With plans to operate a green hydrogen highway across North America and Europe, Plug built a factory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028.

According to Plug, the green hydrogen produced by the company’s electrolyzers can help decarbonize the ammonia production process by displacing steam methane reforming (SMR) techniques. Furthermore, Plug claimed that its pressurized (40 bar) electrolyzer decreases downstream compression requirements and the extracted oxygen from electrolysis-based hydrogen can enhance efficiency in industrial power plants and furnaces due to its high-temperature combustion capability.