Investing.com -- Plug Power Inc. (NASDAQ:PLUG) shares rose 3.4% in pre-open trading Wednesday following the announcement of a significant purchase agreement with Allied Green Ammonia (AGA). The deal positions Plug Power as a key supplier for AGA's upcoming green hydrogen-to-ammonia plant in Australia, marking a substantial stride toward a sustainable energy future.
Under the agreement, Plug Power will supply three gigawatts of electrolyzer capacity to power AGA's state-of-the-art facility, which will be energized by a 4.5 GW solar plant, ensuring zero-emission electricity production. The green hydrogen generated will be converted into green ammonia, catering to the increasing demands in Asia and Europe across various sectors.
The deal includes Plug Power's development of a Basic Engineering and Design Package to secure investors and finalize financing. Following a positive Final Investment Decision expected by the second quarter of 2025, the company will commence manufacturing and delivery of Proton Exchange Membrane electrolyzers starting in the first quarter of 2027.
AGA's project, poised to become one of the world's largest green ammonia production facilities, is expected to produce around 2,700 metric tons of green ammonia per day. This venture reflects the escalating global demand for environmentally friendly ammonia solutions.
Plug Power's CEO, Andy Marsh, expressed excitement about the partnership, highlighting the cost and carbon reduction benefits of electrolysis-based hydrogen for ammonia producers. Alfred Benedict, Chairman and Managing Director of AGA, also emphasized the importance of strong partnerships in realizing such ambitious green energy projects.
This strategic alliance underscores Plug Power's commitment to advancing the hydrogen economy and its role in supporting the transition to a net-zero emissions future. The market's positive response to this news reflects investor confidence in the company's growth trajectory and its contributions to the green energy sector.
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