Plug Power Inc., a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has entered into a framework agreement with Allied Green Ammonia (AGA), an Australian company focused on green ammonia production. This agreement entails the provision of three gigawatts (GW) of electrolyzer capacity for AGA’s green hydrogen to ammonia plant in Australia.
The framework agreement follows the recent signing of a Memorandum of Understanding (MOU) and a Basic Engineering and Design Package (BEDP). Both parties are now working to finalize the sales and purchase agreement. This partnership represents a significant advancement towards establishing one of the world’s largest green ammonia production facilities, with the delivery of Plug Power’s electrolyzer systems expected by the end of 2026 or early 2027.
A Major Project for Green Ammonia Production
AGA is developing one of the world’s most significant green ammonia production facilities, designed to produce approximately 2,700 metric tons per day (TPD) of green ammonia. This facility leverages abundant renewable energy resources and a robust energy infrastructure. Strategically located on the Gove Peninsula in the Northern Territory of Australia, the plant is well-positioned to meet the growing demand from AGA’s customers in Asia and Europe, ensuring a reliable and secure supply of green ammonia.
Decarbonizing Ammonia Production
This collaboration aims to significantly decarbonize the traditional ammonia production process by replacing conventional Steam Methane Reforming (SMR) techniques with green hydrogen generated through Plug Power’s advanced electrolyzers. By combining this technology with AGA’s deep industry experience and technical expertise, AGA will be able to produce green hydrogen and ammonia competitively compared to their non-sustainable and carbon-intensive counterparts.
Andy Marsh, CEO of Plug Power, stated: “Ammonia producers are recognizing the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen. We’re thrilled to formalize 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 (Proton Exchange Membrane) electrolyzer 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.”
Commitment to a Sustainable Future
Alfred Benedict, Chairman & Managing Director of Allied Green, added: “At Allied Green, we are excited to leverage Plug’s world-leading electrolyzer technology to produce green ammonia, marking a significant step toward our shared vision of a sustainable energy future. Our collaboration with Plug Power builds on our team’s substantial work over many years, enabling us to efficiently harness the power of electrolysis-based hydrogen and drastically reduce carbon emissions in the ammonia production process. The finalization 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.”
Economic and Environmental Impact
AGA has secured the essential equipment, technology, and offtake agreements necessary to ensure the project’s success, including Plug’s state-of-the-art electrolyzers manufactured at its gigafactory in New York. The company values the substantial support of its industry stakeholders, the Northern Territory Government, the Australian Government, and the local indigenous peoples represented by the Gumatj Corporation. Through these partnerships, AGA aims to deliver critical infrastructure expected to generate thousands of local jobs, prevent the release of millions of tonnes of carbon dioxide into the atmosphere, and provide the global industry with sustainable, clean, and affordable fuels.
