Plug Power Inc. and Allied Green Ammonia (AGA) recently signed a binding framework agreement, in order to finalise a supply agreement of three gigawatts (GW) of electrolyser capacity. This electrolyser capacity will go directly to AGA’s green hydrogen to ammonia plant, which is located in Australia.

AGA is an Australian company that is dedicated to focusing on the production of green ammonia. Whereas Plug Power is well-known as a global leader in comprehensive hydrogen solutions for the green hydrogen economy.

At the moment, Plug is involved with building an end-to-end green hydrogen ecosystem. This will include all the stages from production to storage to delivery and finally, to energy generation. The reason Plug handles their projects like this, is due to their aim to aid their customers in meeting their business goals and in decarbonising the economy. Furthermore, Plug ensures that it delivers its green hydrogen solutions directly to its customers and along with this, through the use of joint venture partners, Plug ensures that their solutions are accessible from multiple environments. These environments could include material handling, power generation, industrial applications and finally, e-mobility.

On the other hand, AGA is a company based in Australia and they are currently partnering with some of the world's leading technology and materials providers. They have made these connections in order to make it possible to design, develop, construct and operate one of the largest and most efficient green ammonia production facilities in the world.

The new framework agreement that has been created between the two companies, comes quickly after an MOU and basic engineering and design package (BEDP). Now the next steps for each company will be to move into finalising the sales and purchase agreement. Also, this agreement is so significant due to the fact that this partnership is a major step towards creating one of the world’s largest green ammonia production facilities. Within this large step, it is predicted that by the end of 2026 or by the beginning of 2027, Plug’s electrolyser system will be delivered.

The purpose behind creating the agreement to supply AGA with three gigawatts (GW) of electrolyser capacity, is because AGA is currently developing one of the most globally significant green ammonia production facilities. This facility will be designed with the ability to produce an estimated 2,700 metric tons per day (TPD) of green ammonia. Along with this, the facility is also designed to leverage abundant renewable energy resources, plus it will also include a robust energy infrastructure.

AGA has cleverly chosen to position their facility at Gove Peninsula which is based in the Northern Territory of Australia. The point of having the facility here is that it will then be able to cater to the growing demand that is coming from AGA’s customers who are located in Asia and Europe. Doing this will mean that AGA is able to guarantee the production of a reliable and secure supply of green ammonia. Whilst this collaboration will be beneficial to AGA’s aims around meeting their customer’s demands, the other purpose of it will be to decarbonise the typical ammonia production process and the collaboration aims to do this through replacing conventional Steam Methane Reforming (SMR) techniques. The plan is to replace this kind of technique with green hydrogen that will be created by Plugs advanced electrolysers.

It is clear that combining this innovative technology with AGA’s deep industry experience, as well as their technical expertise, will make it possible for AGA to produce green hydrogen and ammonia on a competitive scale. It was labelled as a competitive rate once it was compared to conventionally produced, non-sustainable and carbon intensive counterparts.

CEO of Plug Power, Andy Marsh, commented, “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 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.”

Chairman & Managing Director of Allied Green, Alfred Benedict, 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 that will enable 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.”