Plug Power inks 3GW electrolyser deal with Australian ammonia project
Pamela Largue
Posted on: 17 January 2025
Plug Power has signed an agreement to supply 3GW electrolyser capacity to Australia's Allied Green Ammonia (AGA).
US hydrogen solutions firm Plug Power has signed an agreement to supply 3GW electrolyser capacity to Australia's Allied Green Ammonia (AGA).
The electrolyser capacity will be deployed at AGA's hydrogen-to-ammonia plant, currently being developed in Australia's Northern Territory and will be powered by a 4.5GW solar plant AGA plans to install.
AGA refers to this as their "mega project" which, once complete, will produce approximately 2,700 metric tonnes per day (TPD) of green ammonia and will help supply the growing demand from European and Asian customers.
Alfred Benedict, chairman and managing director of AGA, commented in a statement: "Taking on a project of this magnitude, deploying 3GW of electrolyzers, 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. That's why our relationship with Plug is so pivotal. Strong, enduring partnerships are the bedrock of successful projects like this. Having the right allies by our side, like Plug, makes all the difference in turning ambitious, green energy visions into reality."
Plug Power's electrolysers utilise Proton Exchange Membrane (PEM) stack technology, which according to the company is fully customisable. The company states that electrolyser output instantly adjusts based on electrical input, creating an ideal solution to be paired with intermittent renewable resources.
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Now that the agreement has been signed, Plug will develop an engineering and design package, with the Final Investment Decision expected by Q2 2025 and delivery of PEM electrolysers starting in Q1 2027.
Andy Marsh, chief executive of Plug Power, suggests that ammonia producers are increasingly recognising the advantages of electrolyser-produced hydrogen, to reduce both costs and emissions.
To encourage sector growth, the Australian government has established several mechanisms. In 2024, the government announced the Future Made in Australia strategy, which will see more than AUD15 billion (USD9 billion) allocated to the promotion of a local green hydrogen sector.
The Institute of Energy Economics and Financial Analysis suggests the logical first recipient of these funds would be the production of ammonia for local use, made using green hydrogen produced using renewable energy.
Amandine Denis-Ryan, CEO of IEEFA Australia, commented: “Our research shows that Australia’s ammonia industry is in pole position to capitalise on the new funding measures announced in the budget. And this in turn would provide the robust platform for a viable green hydrogen industry in this country."
Denis-Ryan added: "In Australia, two of the most promising uses for green hydrogen are in iron production, and in ammonia. However, we believe ammonia production is the obvious first mover: hydrogen is already its primary chemical feedstock, and some green hydrogen can already be injected in existing plants without requiring any costly equipment change.”
Ammonia is a nitrogen and hydrogen-based chemical compound widely used in producing fertilisers and industrial chemicals. While ammonia produced from natural gas emits two tonnes of CO₂ for every tonne of ammonia, ammonia produced from green hydrogen emits no CO2.
According to Mordor Intelligence, the Ammonia Market size is estimated at 191.97 million tonnes in 2025 and is expected to reach 210.81 million tonnes by 2030. Market growth will be fueled by the abundant use of ammonia in the fertilizer industry and its increasing usage for the production of explosives and as a refrigerant.
