Plug Power, a global leader in comprehensive H₂ solutions for the green H₂ economy, is 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 H₂ 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 electrolysers, liquefiers, tanker trailers and stationary storage tanks for green H₂ production projects in North America, including Fortescue’s proposed Phoenix H₂ plant (30 metric tpd phase 1; 120 metric tpd 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 H₂ 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 H₂ plant (45 metric tpd) and for Plug to take up to a 25% equity stake in Fortescue’s proposed Phoenix H₂ plant.

The proposed 550-MW proton-exchange membrane (PEM) electrolyzer supply contract for Fortescue’s green H₂ production Gibson Island Project in Queensland 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 t of green ammonia a year from the green H₂ produced onsite through the 550-MW H₂ 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 H₂ economy together in the future.”

Sanjay Shrestha, General Manager, Energy Solutions & Chief Strategy Officer continued, “Fortescue’s interest in investing in our green H₂ 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 H₂ 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 that 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 H₂ industries in Australia and North America. We believe there is strong demand globally for the green H₂ we will produce, and we must move quickly to meet that demand.”