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Plug Enters 3 GW BEDP Agreement with Allied Green Ammonia for Electrolyzer Project in Australia
Plug Enters 3 GW BEDP Agreement with Allied Green Ammonia for Electrolyzer Project in Australia

Plug Enters 3 GW BEDP Agreement with Allied Green Ammonia for Electrolyzer Project in Australia

  • 17-May-2024 4:51 PM
  • Journalist: Patrick Knight

Plug Power Inc., a prominent player in holistic hydrogen solutions for the green hydrogen economy, disclosed the conclusion of a Basic Engineering and Design Package (BEDP) agreement with Allied Green Ammonia (AGA), an Australian enterprise dedicated to green ammonia production. This BEDP contract pertains to a three-gigawatt (GW) electrolyzer facility intended to provide hydrogen to AGA's envisioned ammonia plant in the Northern Territory of Australia.

Plug's BEDP package plays a crucial role for project stakeholders such as AGA in facilitating their Front-End Engineering Design (FEED) process and integrating Plug's electrolyzers into the fundamental design of the entire facility. This empowers project stakeholders to reach the final investment decision (FID). AGA is targeting the completion of the FID for their hydrogen-to-ammonia facility, which is set to produce 2,700 metric tons per day (TPD) of green ammonia, by the fourth quarter of 2025.

The unveiling of the BEDP contract comes on the heels of a recently disclosed memorandum of understanding concerning the procurement of Plug's Proton Exchange Membrane (PEM) electrolyzers, with shipments scheduled to commence in the first quarter of 2027.

"Advancing this significant green hydrogen-to-ammonia initiative to the BEDP stage signifies its progression within the development journey," remarked Plug CEO Andy Marsh. " Together, Plug has now obtained BEDP contracts amounting to 7.5 GW globally, in line with our expansion goals."

Alfred Benedict, AGA's Founder & Managing Director, expressed, "Our collaboration with Plug adds to the roster of esteemed global companies joining us on our endeavor to construct one of the largest green ammonia production facilities worldwide, strategically positioned in Australia due to its proximity to Asia. This BEDP contract marks a significant milestone in the advancement of Allied Green's facility, set to become one of the most efficient green hydrogen and green ammonia projects globally. Given our proven track records in delivering clean energy infrastructure, this agreement represents a crucial initial stride and underscores the alignment of our shared visions to offer concrete solutions that facilitate the world's journey towards achieving net-zero emissions."

The green hydrogen produced by Plug's electrolyzers provides a pathway to decarbonize the ammonia production process, replacing traditional Steam Methane Reforming (SMR) techniques. Beyond its environmental benefits, Plug's pressurized (40 bar) electrolyzer reduces the need for downstream compression, while the oxygen derived from hydrogen electrolysis enhances efficiency in industrial power plants and furnaces owing to its capacity for high-temperature combustion. Plug's modular units are fully assembled in the factory and can be conveniently transported by sea and road to remote areas.

AGA's production facility is poised to run a green ammonia process with a capacity of 2,700 metric tons per day (TPD). Leveraging plentiful renewable energy sources and a robust local energy infrastructure, the proposed site on the Gove Peninsula strategically aligns with Australia's trade relations with Asia. Geographically situated to cater to the escalating demands of AGA's target clientele, the facility ensures a dependable and stable source of green ammonia from the region.

Plug stands as the premier manufacturer of PEM electrolyzers and presently oversees the most extensive deployment of PEM electrolyzers in the United States, showcased at its 15 TPD hydrogen plant in Woodbine, Georgia. This declaration comes in the wake of Plug's recent unveiling of BEDP contracts, amounting to 4.5 GW, consequently elevating Plug's total BEDP contracts to 7.5 GW to date, encompassing regions across the United States, Europe, and Australia.

The BEDPs encompass all details necessary for a client's Front-End Engineering Design (FEED) project phase, facilitating the formulation of a mature project execution plan and financial models essential for progressing the projects to the Final Investment Decision (FID) stage. The cumulative 7.5 GW from signed BEDP contracts for mature projects will underpin Plug's growth objectives.

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