Plug Power Strikes Major Deal with Australian Firm for Green Ammonia Production
Key Ideas
- Plug Power signs binding framework agreement with Allied Green Ammonia for 3 GW of electrolyzer capacity in Australia.
- AGA's green hydrogen-to-ammonia plant at Gove Peninsula to produce 2,700 metric tons per day of green ammonia for Asia and Europe.
- Partnership aims to reduce carbon footprint using electrolysis-based hydrogen, replacing traditional SMR in ammonia production.
- AGA project backed by government support expected to create numerous local job opportunities.
Plug Power Inc., a leading global hydrogen solutions provider, has inked a significant deal with Allied Green Ammonia (AGA), an Australian company specializing in green ammonia production. The binding framework agreement outlines plans for installing 3 GW of electrolyzer capacity at AGA's green hydrogen-to-ammonia plant located in Australia's Northern Territory. This collaboration follows the completion of an MOU and BEDP between the two companies and is expected to finalize a sales and purchase agreement in the near future, with the delivery of Plug Power's electrolyzer system anticipated by late 2026 or early 2027.
The AGA facility at Gove Peninsula aims to produce 2,700 metric tons per day of green ammonia using renewable energy sources, catering to AGA's customer base in Asia and Europe. By transitioning to green hydrogen produced through Plug Power's advanced electrolyzers, the project intends to reduce the carbon footprint associated with conventional ammonia production methods, replacing SMR with a more sustainable option.
Plug Power's CEO, Andy Marsh, expressed excitement about the partnership, highlighting the cost and carbon reduction benefits of electrolysis-based hydrogen in ammonia production. Similarly, Alfred Benedict, Chairman and Managing Director of Allied Green, emphasized the collaboration's importance in harnessing hydrogen efficiently and reducing carbon emissions in the ammonia production process.
The AGA project has garnered support from the Northern Territory Government, the Australian Government, and local indigenous groups. This backing, coupled with the project's focus on sustainable practices, is expected to lead to the creation of numerous local jobs, offering economic and environmental benefits to the region.