Plug Power, Inc. (NASDAQ:PLUG) shares are gaining on Friday.
Plug Power inked a memorandum of understanding with Allied Green Ammonia (AGA), an Australian Company focused on green ammonia production.
Under the deal, the company will supply up to 3 gigawatts (GW) of Plug electrolyzer capacity for AGA's upcoming hydrogen-to-ammonia facility proposed for the Northern Territory of Australia.
"Ammonia producers have recognized the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen," said Plug CEO Andy Marsh.
Following the initial pact, the companies plan to initiate a Basic Engineering and Design Package (BEDP) for the 3GW capacity project.
BEDP is expected to advance mid-May of this year, with final investment decision (FID) planned for the fourth quarter of 2025 and the progressive delivery of the 3GW electrolyzer supply slated to begin in the first quarter of 2027.
AGA's production facility will operate a 2500 metric ton-per-day (TPD) green ammonia process.
It taps into abundant renewable energy resources and strong energy infrastructure, the proposed location Gove Peninsula strategically aligning with Asia's trading partnerships.
Yesterday, the company received contracts to supply cryogenic equipment to a multinational industrial gas company and a statewide electric utility company.
Apart from the latest development, Plug Power said it is in the advanced stages of completing an agreement to supply cryogenic equipment to another leading industrial gas company.
Price Action: PLUG shares are trading higher by 11.2% to $2.725 at last check Friday.
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