Plug Power, Inc. (NASDAQ:PLUG) shares are trading lower on Monday. The company inked a binding framework agreement with Allied Green Ammonia (AGA) to supply 3 gigawatts (GW) of electrolyzer capacity for AGA's green hydrogen-to-ammonia plant in Australia.
Following the MOU and engineering design package, Plug and AGA are finalizing a sales agreement. This partnership advances plans for one of the world's largest green ammonia plants, with Plug's electrolyzer system set for delivery by late 2026 or early 2027.
AGA is developing a major green ammonia facility at Gove Peninsula, Northern Territory, Australia, set to produce 2,700 metric tons per day using renewable energy.
This collaboration with Plug Power will decarbonize ammonia production by replacing traditional Steam Methane Reforming (SMR) with green hydrogen from Plug's electrolyzers.
By combining Plug's technology with AGA's industry expertise, the facility aims to produce green ammonia competitively compared to conventional, carbon-intensive methods.
Andy Marsh, CEO of Plug Power. "Our extensive experience in constructing and operating large-scale hydrogen facilities, combined with our cutting-edge PEM electrolyzer technology, positions us as the ideal partner for this transformative 3 GW project."
Alfred Benedict, Chairman & Managing Director of Allied Green said, "Our collaboration with Plug Power builds on our team's substantial work over many years that will enable us to efficiently harness the power of electrolysis-based hydrogen and, drastically reduce carbon emissions in the ammonia production process."
Read: Plug Power Fuels Sales Boom With $150M+ Equipment Leasing Strategy – What's The Benefit?
This month, Plug Power teamed up with Carreras Grupo Logístico in Spain to establish hydrogen-powered logistics site.
Investors can gain exposure to the stock via Global X Hydrogen ETF (NASDAQ:HYDR).
Price Action: PLUG shares are down 0.70% at $2.135 at the last check Monday.
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