ARKANSAS, Oct 20 (Future Headlines)- Plug Power, a leading global provider of green hydrogen solutions, has inked a crucial Memorandum of Understanding (MoU) with Fortescue, a global clean energy and metals company. The agreement designates Plug Power as the preferred supplier for 550 MW proton-exchange membrane (PEM) electrolyzers, a key element in the production of green hydrogen, for Fortescue’s ambitious Gibson Island project in Brisbane, Australia. This collaboration underscores the shared commitment of both companies to advancing a green hydrogen ecosystem and accelerating the transition away from fossil fuel dependency.
The partnership between Plug Power and Fortescue is formalized through a Memorandum of Understanding. Fortescue is committed to global leadership in developing green hydrogen and clean tech at scale, aligning with Plug Power’s expertise in green hydrogen solutions.
The MoU encompasses the evaluation of potential capital equipment supplies, including liquefiers, electrolyzers, stationary storage tanks, and tanker trailers for renewable hydrogen (H2) production projects in North America. This evaluation extends to Fortescue’s Phoenix project, which consists of two phases, with the first phase producing 30 metric tons per day (MTPD) and the second phase 120 MTPD.
Plug Power and Fortescue are exploring co-investment opportunities for renewable hydrogen production in North America. This initiative includes the Texas H2 plant by Plug Power and the proposed Fortescue H2 plant in Phoenix. The equity stake from each party can be as large as 40 percent and 25 percent, respectively.
The green hydrogen electrolyzer contract is primarily designated for the Gibson Island Project by Fortescue. The project’s success hinges on final approvals and negotiations. Furthermore, it is contingent on Fortescue’s final investment decision (FID), which is anticipated to conclude by the end of this year.
Upon operational commencement, the Gibson Island Project is projected to generate approximately 385,000 metric tons of clean ammonia annually. This ammonia is produced from the green hydrogen synthesized at the facility.
The agreement between Plug Power and Fortescue underscores their collective commitment to developing and scaling a global green hydrogen ecosystem. Both companies recognize the pivotal role of green hydrogen in decarbonization, particularly in hard-to-abate industries such as heavy manufacturing and long-haul transport.
The partnership signifies a significant milestone in Plug Power’s leadership position in global electrolyzer solutions. This collaboration with Fortescue opens avenues for building a green hydrogen economy in the future. Fortescue’s interest in investing in green hydrogen plants highlights the economic appeal of Plug Power’s strategy, which leverages third-party investments. The partnership emphasizes the viability of Plug Power’s capital investment strategy for its green hydrogen plant network, attracting external partners and investors.
Reporting by Kevin Wood; Editing by Sarah White