Plug Power recently signed a memorandum of understanding (MOU) with Allied Green Ammonia (AGA), an Australian company focusing on green ammonia production.
The MOU aims to supply up to 3 gigawatts (GW) of Plug electrolyzer capacity for AGA’s forthcoming hydrogen to ammonia facility in Australia’s Northern Territory.
The memorandum sets the stage for Plug and AGA to proceed with a Basic Engineering and Design Package (BEDP) for the 3GW capacity project, anticipated to commence in mid-May. The final investment decision (FID) is projected for Q4 2025, with the gradual delivery of the 3GW electrolyzer supply slated to commence in Q1 2027. This ambitious timeline underscores the urgency and commitment to advancing green hydrogen initiatives.
Plug CEO Andy Marsh expressed enthusiasm about the partnership, citing the substantial cost and carbon reduction advantages of electrolysis-based hydrogen for ammonia production. Marsh’s remarks highlight the potential of green hydrogen technology to revolutionize traditional ammonia production methods and contribute to environmental sustainability.
Alfred Benedict, Founder & Managing Director of AGA, emphasized the strategic significance of the partnership and AGA’s commitment to delivering one of the world’s largest green ammonia production facilities. The proposed location at the Gove Peninsula aligns strategically with Asia’s trading partnerships, tapping into abundant renewable energy resources and robust energy infrastructure. AGA’s vision underscores the pivotal role of geographical positioning in meeting global energy demands.
Green hydrogen produced by Plug’s electrolyzers offers significant environmental benefits by decarbonizing the ammonia production process, thereby reducing greenhouse gas emissions. Additionally, Plug’s pressurized electrolyzer technology enhances downstream efficiency by decreasing compression requirements. The utilization of extracted oxygen further enhances industrial power plant efficiency, showcasing the multifaceted advantages of electrolysis-based hydrogen production.
AGA’s proposed production facility, with a capacity of 2500 metric tons-per-day (TPD) of green ammonia, underscores the scale and ambition of the project. Plug’s position as a leading manufacturer of PEM electrolyzers, coupled with its track record in deploying large-scale electrolyzer projects, reinforces its industry leadership. The announcement builds upon Plug’s recent BEDP contracts, signaling its commitment to advancing green hydrogen initiatives globally.
