AGA seals deal with Plug Power for 3 GW electrolyser system

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Western Australian chemical company Allied Green Ammonia (AGA) has finalised a deal with United States-based Plug Power for the supply of proton exchange membrane (PEM) electrolysers for its green hydrogen-to-ammonia plant planned for the Gove Peninsula in north-east Arnhem Land.

Under the agreement, Plug will supply 3 GW of electrolyser capacity to power the green hydrogen production facility which AGA said will be energised by a 4.5 GW solar plant. The hydrogen generated will be converted into green ammonia.

Located near the township of Nhulunbuy and an existing deep-water port, the green hydrogen production facility is expected to produce up to 2,700 metric tons of green ammonia per day to serve markets in Asia and Europe.

The purchase agreement includes Plug’s development of a basic engineering and design package (BEDP) to help secure investors and finalise financing. Upon a positive final investment decision, expected by the second quarter of 2025, Plug will start manufacturing and delivering the electrolysers in the first quarter of 2027.

The finalisation of the contract follows the signing last year of a memorandum of understanding between the two parties for the supply of electrolysers for the estimated $12.7 billion (USD 7.87 billion) production facility.

AGA Chairman and Managing Director Alfred Benedict labelled the deal with Plug as “pivotal” to the success of the project, which he said will be one of the most efficient green hydrogen and green ammonia projects globally.

“Taking on a project of this magnitude, deploying 3 GW of electrolysers, is no small feat,” he said.  “That’s why our relationship with Plug is so pivotal. Having the right allies by our side, like Plug, makes all the difference in turning ambitious, green energy visions into reality.”

AGA has said the green ammonia production facility is expected to commence commercial operations in the first quarter of 2029.

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