Plug Power and Fortescue have signed a Memorandum of Understanding (MOU) to evaluate the potential supply of a range of capital equipment for green hydrogen production projects in North America and Australia.
The MOU also includes the evaluation of co-investment opportunities in green hydrogen production projects in North America. Plug and Fortescue have started the initial diligence process for Fortescue to take up to a 40% equity stake in Plug’s Texas hydrogen plant (45 MTPD) and for Plug to take up to a 25% equity stake in Fortescue’s proposed Phoenix hydrogen plant (30 MTPD phase 1; 120 MTPD phase 2).
Plug Power is the preferred supplier of 550 MW PEM (proton-exchange membrane) electrolyzers for Fortescue’s green hydrogen production Gibson Island Project in Brisbane, Queensland, Australia. This contract is subject to final negotiations and approvals and Fortescue’s final investment decision (FID) on that project. An FID is expected by the end of December 2023. Once operational, the plant is expected to produce approximately 385,000 [metric] tons of green ammonia a year from the green hydrogen produced onsite through the 550 MW hydrogen electrolysis facility.
Plug Power and Fortescue share a common mission to build out and scale up a global green hydrogen ecosystem. They consider green hydrogen, which is produced using renewable energy, to be critical to the decarbonization of hard-to-abate industries, such as long-haul transportation and heavy manufacturing of steel, chemicals, concrete and more.
The collaboration between Plug Power and Fortescue is a significant step forward for the development of the green hydrogen economy. By combining their expertise and resources, the two companies are well-positioned to accelerate the deployment of green hydrogen production and utilization projects at scale.
The potential co-investment opportunities between the two companies are also noteworthy. By sharing the financial burden of developing and scaling green hydrogen projects, Plug Power and Fortescue can help to reduce the risks and costs associated with these projects. Overall, the collaboration between Plug Power and Fortescue is a positive development for the green hydrogen industry. It sends a strong signal to other companies and investors that green hydrogen is a viable and attractive investment opportunity.