LATHAM, N.Y., Oct. 11, 2023 (GLOBE NEWSWIRE) -- Plug Power (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, is currently the preferred supplier of 550 MW electrolyzers to Fortescue, a global green energy and metals company, for Fortescue’s proposed Gibson Island Project.
Fortescue, which is committed to leading the world in stepping beyond fossil fuels by developing green electrons, green hydrogen and green technology at scale, and Plug have signed a Memorandum of Understanding (MOU) to evaluate the potential supply of a range of capital equipment including electrolyzers, liquefiers, tanker trailers and stationary storage tanks for green hydrogen production projects in North America, including Fortescue’s proposed Phoenix hydrogen plant (30 metric tons per day (MTPD) phase 1; 120 MTPD phase 2). Both parties are also looking to collaborate on additional large projects on a global basis.
Under the terms of the MOU, Plug and Fortescue will also evaluate co-investment opportunities in green hydrogen production projects in North America. Plug and Fortescue have started the initial diligence process for Fortescue to take up to a 40% equity stake in Plug’s Texas hydrogen plant (45 MTPD) and for Plug to take up to a 25% equity stake in Fortescue’s proposed Phoenix hydrogen plant.
The proposed 550 MW (megawatt) PEM (proton-exchange membrane) electrolyzer supply contract for Fortescue’s green hydrogen production Gibson Island Project in Brisbane, Queensland, Australia, is subject to final negotiations and approvals and Fortescue’s final investment decision (FID) on that project. An FID is expected by the end of December 2023. Once operational, the plant is expected to produce approximately 385,000 [metric] tons of green ammonia a year from the green hydrogen produced onsite through the 550 MW hydrogen electrolysis facility.
“The proposed 550 MW electrolyzer deal reinforces Plug’s established leadership position in deploying electrolyzer solutions at a global scale,” said Plug CEO Andy Marsh. “Today, we have taken a meaningful positive step forward in our ongoing relationship with Fortescue, opening up many opportunities to build the green hydrogen economy together in the future.”
Sanjay Shrestha, General Manager, Energy Solutions & Chief Strategy Officer continues, “Fortescue’s interest in investing in our green hydrogen plants validates Plug’s strategy to bring on third party investors, and its economic attractiveness as we execute our capital investment strategy for our green hydrogen plant network by bringing on board partners and outside investors.”
Mark Hutchinson, CEO, Fortescue Energy, said: “Plug Power’s preferred supplier status for the Gibson Island Project is another step towards fulfilling our ambition to make a final investment decision on the project this calendar year. It is vital that first movers like Plug Power and Fortescue continue to work together to develop and scale-up the green energy and green hydrogen industries in Australia and North America. We believe there is strong demand globally for the green hydrogen we will produce and we must move quickly to meet that demand.”
Plug and Fortescue share a common mission to build out and scale up a global green hydrogen ecosystem. They consider green hydrogen, which is produced using renewable energy, is critical to the decarbonization of hard-to-abate industries, such as long-haul transportation and heavy manufacturing of steel, chemicals, concrete and more.
About Plug
Plug is building an end-to-end green hydrogen ecosystem, from production, storage and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 60,000 fuel cell systems and over 180 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen. With plans to build and operate a green hydrogen highway across North America and Europe, Plug is operating a state-of-the-art Gigafactory to produce electrolyzers and fuel cells, and is commissioning multiple green hydrogen production plants that will yield 500 tons of liquid green hydrogen daily by year end 2025. Plug will deliver its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications. For more information, visit www.plugpower.com.
About Fortescue
Fortescue is a global metals and green energy company, recognized for its culture, innovation and industry-leading development of infrastructure, mining assets and green energy initiatives. It operates with two divisions – Metals and Energy. Fortescue is committed to producing green hydrogen, containing zero carbon, from renewable electricity. Green hydrogen is a zero-carbon fuel that, when used, produces primarily water. It is a practical and implementable solution that can help revolutionize the way we power our planet: helping to decarbonize heavy industry and create jobs globally. Fortescue is leading the green industrial revolution, acquiring and developing technology solutions for hard-to-decarbonize industries, while building a global portfolio of renewable green hydrogen and green ammonia projects. Fortescue is also leading the global effort to help decarbonize hard-to-abate sectors and is developing and acquiring the technology and energy supply to help decarbonize the Australian iron ore operations of one of the world’s largest producers of iron ore, Fortescue Metals, by 2030 (Scope 1 and 2 terrestrial emissions). fortescue.com
Plug Power Safe Harbor Statement
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“PLUG”), including but not limited to statements about: Plug potentially supplying 550 MW of PEM Electrolysis capacity to the Gibson Island production plant. Fortescue is making a FID by the end of December 2023. Expectations for the plant, once operational, to produce approximately 385,000 [metric] tons of green ammonia a year from the green hydrogen produced on site through the 550 MW hydrogen electrolysis facility. The potential supply by Plug of a range of capital equipment including electrolyzers, liquefiers, tanker trailers and stationary storage tanks for Fortescue’s potential green hydrogen production projects in North America, including Fortescue’s proposed Phoenix hydrogen plant (30 metric tons per day (MTPD) phase 1; 120 MTPD phase 2). Potential investments and/or co-investments in the respective parties’ hydrogen production plants in Texas and Arizona, USA. Plug building multiple green hydrogen production plants that may yield up to 500 tons of liquid green hydrogen daily by year end 2025. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of PLUG in general, see PLUG’s public filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of PLUG’s Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and PLUG undertakes no obligation to update such statements as a result of new information.
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