U.S. Plug Power has signed a purchase agreement with Australian Allied Green Ammonia (AGA) to supply three gigawatts (3 GW) of electrolyzer capacity to AGA’s green hydrogen-to-ammonia plant, currently under development in Australia.
As disclosed, AGA will install a 4.5 GW solar plant to power Plug electrolyzers with zero-emission clean electricity, and the green hydrogen produced will be used to make green ammonia.
This purchase deal follows the signed binding framework agreement, memorandum of understanding (MoU) and basic engineering and design package (BEDP) . With the final agreement now signed and sealed, Plug will, reportedly, develop BEDP, providing technical details and engineering specifications to attract investors and finalize financing.
Upon a positive final investment decision (FID), expected by Q2 2025, Plug said the company will start the manufacturing and delivery of proton exchange membrane (PEM) electrolyzers starting in Q1 2027.
To note, AGA’s production facility is expected to produce approximately 2,700 metric tons per day (TPD) of green ammonia. Strategically located at Gove Peninsula in the Northern Territory of Australia, the plant is said to be positioned to cater to the growing demand from AGA’s customers in Asia and Europe.
Andy Marsh, CEO of Plug, stated: “Ammonia producers are recognizing the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen. We’re thrilled to partner with Allied Green Ammonia, a leader in global green ammonia production. Together, we’re not only advancing green ammonia production but actively supporting the global transition to a net-zero emissions future.”
Alfred Benedict, Chairman and Managing Director of AGA, commented: “Taking on a project of this magnitude, deploying 3 GW of electrolyzers, is no small feat. From the moment we decided to embark on this journey, we knew we were looking at a long-term commitment to our partners of 4 to 5 years. That’s why our relationship with Plug is so pivotal. Strong, enduring partnerships are the bedrock of successful projects like this. Having the right allies by our side, like Plug, makes all the difference in turning ambitious, green energy visions into reality.”
As for AGA’s other activities related to the project, in 2024, the company signed an agreement with German-based 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.