Plug Power named preferred supplier of electrolyzers to Fortescue Metals

Plug Power (PLUG) is currently the preferred supplier of 550 MW electrolyzers to Fortescue (FSUGY) for Fortescue’s proposed Gibson Island Project. Fortescue and Plug have signed a Memorandum of Understanding 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. 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 and for Plug to take up to a 25% equity stake in Fortescue’s proposed Phoenix hydrogen plant. The proposed 550 MW PEM 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 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.