Plug Power has finalised a 3GW electrolyser order from Allied Green Ammonia (AGA) for a major hydrogen-to-ammonia plant under development in Australia’s Northern Territory.
After Plug signed a Memorandum of Understanding (MOU) and agreed to support the Front-End Engineering Design (FEED) of the plant under a Basic Engineering and Design Package last May, they will now deliver the PEM electrolyser solutions from 2027.
Read more:Plug to provide BEDP services to 3GW Australian green ammonia project
Whilst this depends on a positive final investment decision (FID) on the plant, which is expected in Q2 2025, AGA plans to use the electrolysers to help produce approximately 2,700 tonnes of green hydrogen-based ammonia per day.
Additionally, a 4.5GW solar plant will be installed to power the Plug electrolysers. The green ammonia will likely be exported to AGA’s customers in Asia and Europe, in the agriculture, energy storage, transport and industrial sectors.
Alfred Benedict, Chairman and Managing Director of Australia’s AGA, underlined the scale of the project and recognised the challenges it could present.
Benedict said, “Taking on a project of this magnitude, deploying 3 GW of electrolysers, is no small feat. From the moment we decided to embark on this journey, we knew we were looking at a long-term commitment to our partners of 4 to 5 years.”
Andy Marsh, CEO of Plug Power, added, “Ammonia producers are recognising the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen.”
Australia unveils updated hydrogen strategy aiming for export leadership
The Australian Government has unveiled its updated National Hydrogen Strategy in an attempt to position the country as a large-scale exporter.
Revealed today (September 13), the 2024 strategy sets the goal of producing 15 million tonnes of green hydrogen per year by 2050, with a “stretch potential” of 30 million tonnes.
“Setting five-yearly production milestones out to 2050 will provide the trajectory we will need to realise our goal to be a global hydrogen leader,” the strategy reads.
With the ambitions supported by the AUD $2/kg ($1.34/kg) Hydrogen Production Tax Incentive (HPTI), Hydrogen Headstart programme and other mechanisms, the government intends to bridge the commercial price gap with fossil fuels.
Planning to use the energy carrier in green metals, ammonia, long haul transport, power generation and grid support, the strategy further aligns with the Future Made in Australia (FMIA) agenda announced in May.
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