U.S. Plug Power has signed a binding framework agreement with Australian Allied Green Ammonia (AGA) to finalize a supply agreement for three gigawatts (GW) of electrolyzer capacity to AGA’s hydrogen-to-ammonia plant in Australia.
The framework agreement follows the signed memorandum of understanding (MoU) and basic engineering and design package (BEDP).
The parties will now move into finalizing the sales and purchase agreement, and the delivery of Plug’s electrolyzer system is expected for the end of the year in 2026/early 2027.
According to Plug, this collaboration aims to decarbonize the typical ammonia production process by replacing conventional steam methane reforming (SMR) techniques with green hydrogen generated through Plug’s electrolyzers.
To note, the AGA production facility is expected to produce approximately 2,700 metric tons per day (TPD) of green ammonia, leveraging “abundant” renewable energy resources and a “robust” energy infrastructure.
Strategically located at Gove Peninsula in the Northern Territory of Australia, the facility is said to be positioned to cater to the growing demand from AGA’s customers in Asia and Europe.
Andy Marsh, CEO of Plug Power, commented: “Ammonia producers are recognizing the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen. We’re thrilled to formalize this framework agreement with Allied Green Ammonia… Together, we are paving the way for a more sustainable future in green ammonia production, while supporting the global transition to net-zero emissions.”
Alfred Benedict, Chairman & Managing Director of AGA, said: “Our collaboration with Plug Power builds on our team’s substantial work over many years that will enable us to efficiently harness the power of electrolysis-based hydrogen and, drastically reduce carbon emissions in the ammonia production process. The finalization of the supply agreement is one of the last major milestones for our project to progress to final investment decision (FID), which is expected imminently.”
In 2024, AGA signed an agreement with SPG Steiner for the supply of two large-scale 40,000-tonne cryogenic full containment double-wall ammonia storage tanks and an associated refrigeration system. The tanks will store 950,000 tonnes per year of green ammonia produced by AGA and shipped to its offtake partner.