Plug Signs 3 GW BEDP Contract with Allied Green Ammonia for Electrolyzer Project in Australia
Plug Power has signed a Basic Engineering and Design Package (BEDP) contract with Allied Green Ammonia (AGA) for a 3 GW electrolyzer plant in Australia's Northern Territory. This project is part of AGA's plan to produce 2,700 TPD green ammonia. The final investment decision (FID) is expected by Q4 2025, with delivery starting in Q1 2027.
This deal brings Plug's global BEDP contracts to 7.5 GW, enhancing its growth targets. The agreement underscores the maturity of the project and the alignment of both companies' visions for sustainable energy solutions.
Plug's electrolyzers will help decarbonize ammonia production, potentially benefiting industrial applications. The plant's strategic location aims to leverage renewable energy resources and cater to the growing Asian market for green ammonia.
- Plug Power's total BEDP contracts now amount to 7.5 GW globally, reinforcing its growth targets.
- The 3 GW BEDP contract with AGA adds significant leverage to Plug's market presence in Australia.
- The project supports sustainability by enabling green hydrogen production, which can decarbonize ammonia production processes.
- The strategic location in Australia aligns with the country's trading partnerships with Asia, tapping into a growing market for green ammonia.
- Plug Power's pressurized electrolyzers offer efficiency advantages, reducing downstream compression requirements.
- The modular nature of Plug's electrolyzers facilitates easier transportation and installation at remote locations.
- Final Investment Decision (FID) for the project is not expected until Q4 2025, indicating a long lead time.
- Deliveries for the electrolyzers are slated to begin only in Q1 2027, which may delay potential revenue gains.
- Potential risks associated with project execution delays or unexpected challenges in the construction and operational phases.
Insights
The signing of a 3 GW BEDP contract with Allied Green Ammonia (AGA) represents a significant milestone for Plug Power. This agreement brings Plug's total BEDP contracts to 7.5 GW globally, which directly supports the company’s growth targets. The financial implications are notable as the scale of this project can lead to a significant increase in revenue streams. Plug Power's strategic placement in the hydrogen economy with substantial projects like this one can enhance investor confidence in its long-term growth potential. However, investors should be aware of the project timelines, with the final investment decision expected in Q4 2025 and product deliveries starting in Q1 2027. These extended timelines mean that while the project is promising, it will not contribute to immediate earnings.
From a market perspective, this contract is a step forward in establishing Plug Power as a leader in the green hydrogen sector. The AGA facility’s strategic location in Australia, close to major Asian markets, positions Plug Power well to capitalize on the growing demand for green ammonia. This demand is driven by increasing regulatory pressures and the global push towards decarbonization. Additionally, the modular nature of Plug’s electrolyzers and their ability to be transported easily adds a competitive edge in meeting diverse geographical needs. Despite this, investors should remain cautious of market volatility and competition, especially from other green hydrogen solution providers.
Technically, Plug Power's Proton Exchange Membrane (PEM) electrolyzers offer notable advantages in the green hydrogen production process. The pressurized (40 bar) electrolyzers reduce downstream compression needs, enhancing efficiency and cost-effectiveness. Furthermore, the utilization of the extracted oxygen in industrial applications adds another layer of efficiency, making the technology more attractive. However, the real-world application and scaling of these technologies will be crucial. Investors should closely monitor the execution phase of the project to see if these technical benefits translate into operational efficiencies and cost savings.
Supporting its growth targets, Plug brings its total BEDP global contracts to 7.5 GW
LATHAM, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, announced the signing of a Basic Engineering and Design Package (BEDP) with Allied Green Ammonia (AGA), an Australian company focused on green ammonia production, for a three-gigawatt (GW) electrolyzer plant supplying hydrogen to AGA’s planned ammonia facility proposed for the Northern Territory of Australia.
Plug’s BEDP offering is instrumental for project owners like AGA to support their Front-End Engineering Design (FEED) and incorporate Plug’s electrolyzers into the basic design of the overall plant, enabling project owners to make the final investment decision (FID). The FID for AGA’s hydrogen-to-ammonia facility, with a capacity of 2,700 metric ton-per-day (TPD) green ammonia, is planned for Q4 2025.
The BEDP contract announcement follows the recently announced memorandum of understanding for the supply of Plug’s Proton Exchange Membrane (PEM) electrolyzers with delivery slated to begin in Q1 2027.
“Moving this major green hydrogen-to-ammonia project to the BEDP phase is a sign of its maturity in the development process,” noted Plug CEO Andy Marsh. “In total, we now have 7.5 GW of BEDP contracts globally to support our growth targets.”
Alfred Benedict, Founder & Managing Director of AGA, said: “Our contract with Plug builds on a long list of leading global firms who are joining us on our journey to build one of the largest green ammonia production facilities in the world, in a strategically located part of Australia given its proximity to Asia. This BEDP agreement is a significant milestone in the development of Allied Green’s facility, which will be one of the most efficient green hydrogen and green ammonia projects globally. Given our respective track records in delivering clean energy infrastructure, this agreement is a critical first step and a testament to the alignment of our respective visions to provide tangible solutions that enable the world to achieve net-zero.”
Green hydrogen produced by Plug’s electrolyzers can help decarbonize the ammonia production process by displacing Steam Methane Reforming (SMR) techniques. In addition to its environmental advantages, Plug's pressurized (40 bar) electrolyzer decreases downstream compression requirements, and the extracted oxygen from electrolysis-based hydrogen can enhance efficiency in industrial power plants and furnaces due to its high-temperature combustion capability. The Plug modular units are completely factory-assembled and can easily be transported by sea and road to remote locations.
AGA’s production facility will operate a 2,700 metric ton-per-day (TPD) green ammonia process. Tapping into abundant renewable energy resources and a strong local energy infrastructure, the proposed Gove Peninsula location strategically aligns with Australia’s trading partnerships with Asia. The facility is geographically positioned to meet AGA’s intended customers’ growing needs, providing them with a reliable and secure supply of green ammonia from the region.
Plug is the leading manufacturer of PEM electrolyzers and currently operates the largest PEM electrolyzer deployment in the United States at its 15 TPD Woodbine, Ga., hydrogen plant. This announcement follows Plug’s recently announced BEDP contracts totaling 4.5 GW, bringing Plug’s total BEDP contracts to 7.5 GW to date spanning across the United States, Europe and Australia.
The BEDPs contain all the information for a clients’ Front-End Engineering Design (FEED) project phase to develop a mature project execution plan and financial models required to bring the projects to FID. The total of 7.5 GW of signed BEDP contracts of mature projects will support Plug’s growth targets.
To learn more about becoming a Plug BEDP customer, contact us at: https://www.plugpower.com/learn-more-about-plugs-electrolyzer-products/
About Plug
Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.
With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.
For more information, visit www.plugpower.com.
About Allied Green Ammonia
Allied Green Ammonia is an Australian based company with deep and proven in-house experience in building green ammonia capacity and other clean energy projects globally. We are partnering with the world’s leading technology and materials providers to design, develop, construct and operate one of the world’s largest and most efficient green ammonia production facilities.
Allied Green Ammonia is positioning itself as a global industry leader in clean energy infrastructure and is rapidly advancing the development of its flagship green ammonia plant proposed for construction on the Gove peninsula in Australia’s Northern Territory.
AGA deeply values the substantial support of, and its relationships with, its industry partners, the Northern Territory and Australian Governments, the Aboriginal and Torres Strait Islander peoples, and the ongoing consultation with the Gumatj Corporation. We look forward to delivering this critical piece of infrastructure that is expected to create thousands of local jobs while avoiding the release of millions of tonnes of carbon dioxide into the atmosphere and provide global industry with sustainable, clean and affordable fuels.
For more information, visit www.alliedgreen.com.au.
Plug Power Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“Plug”), including but not limited to statements about: Allied Green Ammonia's (AGA) planned ammonia facility, including with respect to its proposed location, timing of final investment decision, and expected output capacity; whether such facility will be one of the most efficient green hydrogen and green ammonia projects globally; whether such facility will meet AGA’s intended customers’ growing needs; Plug’s expectations regarding the timing of delivery of its Proton Exchange Membrane (PEM) electrolyzers to AGA; and Plug’s expectations that its signed Basic Engineering and Design Package (BEDP) contracts will support its growth targets. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, Plug’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and Plug undertakes no obligation to update such statements as a result of new information.
Plug Media Contact
Fatimah Nouilati
Allison
PlugPR@allisonworldwide.com
FAQ
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