A project by fledgling Australian company Allied Green Ammonia to build a green ammonia production facility in the Northern Territory has taken another major step forward with an agreement to purchase 3GW of electrolyser capacity.

In a joint statement with United States-based electrolyser manufacturer Plug Power published on Thursday, the two companies celebrated the signing of the “monumental deal” that will form the core of its green hydrogen-to-ammonia plant currently under development.

The two companies last May signed a Basic Engineering and Design Package (BEDP) to build the large-scale, renewables-based hydrogen and ammonia production project in Gove in the NT.

The BEDP contract followed a memorandum of understanding for the supply of 3GW of Plug’s Proton Exchange Membrane (PEM) electrolysers for the AGA project, with delivery slated to begin in the first quarter of 2027.

The Plug Power electrolysers will be powered by a 4.5GW solar plant and the hydrogen produced will be used to make green ammonia, building on a partnership that was formalised in May this year.

Plug will now develop a Basic Engineering and Design Package (BEDP) that outlines the technical details and engineering specifications to attract investment and complete financialisation of the project.

AGA has pitched its Gove Peninsula project as “one of the largest green ammonia production facilities in the world” with plans to generate 165,000 tonnes of renewable hydrogen a year to produce 912,000 tonnes a year of green ammonia – or 2,700 metric tons per day. It is targeting commercial operations to begin in the first quarter of 2029.

The project will benefit from pre-existing port infrastructure and desalination plant necessary to supply 1,750 MG/year of ultrapure water for hydrogen production through electrolysis and to export the ammonia to Asia and Europe for use in agriculture, energy storage, transport and industrial applications.

AGA’s chairman and managing director, Alfred Benedict, described the relationship with Plug as “pivotal” to the success of the project saying “having the right allies by our side” is critical to “turning ambitious, green energy visions into reality.”

“Taking on a project of this magnitude, deploying 3GW of electrolysers, is no small feat,” said Benedict.

“From the moment we decided to embark on this journey, we knew we were looking at a long-term commitment to our partners of four to five years.”

Andy Marsh, CEO of plug, said green ammonia production would be critical to efforts to contain the worst effects of climate change.

“Ammonia producers are recognising the substantial advantages of cost and carbon reduction through electrolysis-based hydrogen,” Marsh said.