Fortescue and Plug have signed a Memorandum of Understanding (MOU) to evaluate the potential supply of a range of capital equipment including electrolysers, liquefiers, tanker trailers and stationary storage tanks for green hydrogen production projects in North America, including Fortescue’s proposed Phoenix hydrogen plant. Both parties are also looking to collaborate on additional large projects on a global basis.
Under the terms of the MOU, Plug and Fortescue will also evaluate co-investment opportunities in green hydrogen production projects in North America. Plug and Fortescue have started the initial diligence process for Fortescue to take up to a 40% equity stake in Plug’s Texas hydrogen plant and for Plug to take up to a 25% equity stake in Fortescue’s proposed Phoenix hydrogen plant.
The proposed 550 MW proton-exchange membrane (PEM) electrolyser supply contract for Fortescue’s green hydrogen production Gibson Island Project in Brisbane, Queensland, Australia, is subject to final negotiations and approvals and Fortescue’s final investment decision (FID) on that project. An FID is expected by the end of December 2023. Once operational, the plant is expected to produce approximately 385 000 tpy of green ammonia from the green hydrogen produced onsite through the 550 MW hydrogen electrolysis facility.
“The proposed 550 MW electrolyser deal reinforces Plug’s established leadership position in deploying electrolyser solutions at a global scale,” said Plug CEO, Andy Marsh. “Today, we have taken a meaningful positive step forward in our ongoing relationship with Fortescue, opening up many opportunities to build the green hydrogen economy together in the future.”
Mark Hutchinson, CEO, Fortescue Energy, said: “Plug Power’s preferred supplier status for the Gibson Island Project is another step towards fulfilling our ambition to make a FID on the project this calendar year. It is vital that first movers like Plug Power and Fortescue continue to work together to develop and scale-up the green energy and green hydrogen industries in Australia and North America. We believe there is strong demand globally for the green hydrogen we will produce and we must move quickly to meet that demand.”