Plug Power has signed a memorandum of understanding (MOU) with Allied Green Ammonia (AGA) to deliver up to 3 GW of Plug Power’s electrolyzer capacity for AGA’s upcoming hydrogen to ammonia facility planned for the Northern Territory of Australia. AGA’s production facility is set to run a green ammonia process with a capacity of 2,500 metric tons per day.
After signing the MOU, Plug and AGA intend to finalize an agreement to commence a Basic Engineering and Design Package (BEDP) for the 3 GW capacity project. The BEDP is scheduled to progress by mid-May 2024, meanwhile the final investment decision is targeted for the fourth quarter of 2025. The gradual delivery of the 3 GW electrolyzer supply is planned to commence in the first quarter of 2027.
In May 2023, Plug Power committed to construct three hydrogen electrolysers with a total capacity of 2.25 GW in Finland by 2030. The Finnish government’s goals to become carbon neutral by 2035 will benefit from this. The Kokkola South facility will have 1 GW of electrolytic capacity erected for the generation of 85 tpd of green hydrogen and 700 kilotonnes of green ammonia per year.
REGlobal’s Views: Australia has large untapped renewable energy potential which makes it suitably placed to produce large volumes of green hydrogen, especially owing to its proximity to large consumer markets. Many electrolyser providers have been tying up with upcoming green hydrogen projects in Australia. Recently, Fortescue also opened a 2 GW electrolyser manufacturing facility in Australia showing the increasing demand for hydrogen and related equipment in the country.
