Plug and Allied Green execute binding framework agreement for 3 GW electrolyser capacity

The framework agreement follows the recently signed Memorandum of Understanding (MoU) and basic engineering and design package (BEDP). Both parties will now move into finalising the sales and purchase agreement. The partnership between Plug and AGA marks a major step toward building one of the world's largest green ammonia production facilities in the world, with the delivery of Plug’s electrolyser system expected for the end of the year in 2026/early 2027.

AGA is in the process of developing one of the most globally significant green ammonia production facilities, designed to produce approximately 2700 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 positioned to cater to the growing demand from AGA's customers in Asia and Europe, ensuring a reliable and secure supply of green ammonia. Accordingly, this collaboration aims to significantly decarbonise the typical ammonia production process by replacing conventional steam methane reforming (SMR) techniques with green hydrogen generated through Plug's advanced electrolysers. Combining this technology with AGA’s deep industry experience and technical expertise will enable AGA to produce green hydrogen and ammonia competitively when compared against its conventionally produced non sustainable and carbon intensive counterparts.

“Ammonia producers are recognising the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen,” said Andy Marsh, CEO of Plug Power. “We’re thrilled to formalise this framework agreement with Allied Green Ammonia who is at the forefront of global hydrogen and ammonia production and facility design. Our extensive experience in constructing and operating large-scale hydrogen facilities, combined with our cutting-edge PEM electrolyser technology, positions us as the ideal partner for this transformative 3 GW project. Together, we are paving the way for a more sustainable future in green ammonia production, while supporting the global transition to net-zero emissions.”

"At Allied Green, we are excited to leverage Plug’s world leading electrolyser technology to produce green ammonia, marking a significant step toward our shared vision of a sustainable energy future,” said Alfred Benedict, Chairman and Managing Director of Allied Green. “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 finalisation 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.”

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/08102024/plug-and-allied-green-execute-binding-framework-agreement-for-3-gw-electrolyser-capacity/