Plug Power Inc., a known name in comprehensive hydrogen solutions for the green hydrogen economy, announced the signing of a memorandum of understanding (MOU) with Allied Green Ammonia (AGA), an Australian company focused on green ammonia production, to supply up to three gigawatts (GW) of Plug electrolyzer capacity for AGA’s upcoming hydrogen to ammonia facility proposed for the Northern Territory of Australia.
Following the MOU, Plug and AGA plan to enter an agreement, as outlined in the MOU, to initiate a Basic Engineering and Design Package (BEDP) for the three GW capacity project. The BEDP is expected to advance mid-May of this year, with final investment decision (FID) planned for Q4 2025 and the progressive delivery of the 3GW electrolyzer supply slated to begin in Q1, 2027.
“Ammonia producers have recognized the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen,” said Plug CEO Andy Marsh. Marsh added, “We’re thrilled to sign this MOU and partner with AGA. Our expertise in constructing and operating large-scale hydrogen production facilities and our PEM electrolyzer manufacturing capability to support their 3GW project position us as the ideal partner for this endeavour”.
Alfred Benedict, Founder and Managing Director of AGA said, “Our MOU with Plug builds on a long list of leading global firms who are joining us on our journey to build one of the largest green ammonia production facilities in the world, in a strategically located part of Australia given its proximity to Asia. This agreement, in light of Plug’s unrivalled expertise and complementary technologies, is a strong vote of confidence in our capabilities and a significant milestone in the planned delivery of Allied Green’s facility, which will be one of the most energy efficient green hydrogen and green ammonia projects globally. Given our respective track records in delivering clean energy infrastructure, this agreement is a critical first step and a testament to the alignment of our respective visions to provide tangible solutions that enable the world to achieve net-zero”.
As per the press release, green hydrogen produced by Plug’s electrolyzers can help decarbonize the ammonia production process by displacing Steam Methane Reforming (SMR) techniques. In addition to its environmental advantages, Plug’s pressurized (40 bar) electrolyzer decreases downstream compression requirements and the extracted oxygen from electrolysis-based hydrogen can enhance efficiency in industrial power plants and furnaces due to its high-temperature combustion capability.
AGA’s production facility will operate a 2,500 metric ton-per-day (TPD) green ammonia process. It taps into abundant renewable energy resources and strong energy infrastructure, the proposed location Gove Peninsula strategically aligning with Asia’s trading partnerships. The facility is geographically positioned to meet AGA’s intended customers’ growing needs, providing them with a reliable and secure supply of green ammonia from the region.
