Plug Power signs 280 MW Arcadia supply pact as FID remains pending
Plug's Sept. 29 release gives no price or delivery date for the 280 MW ENDOR agreement and says deliveries will begin after the project issues notice to proceed.
Ines Halvorsen
On Sept. 29, a 280-megawatt electrolyzer supply agreement for Denmark's Project ENDOR was signed by Plug Power Inc. NASDAQPLUG. Plug's Sept. 29 release gives no dollar value for the 280-megawatt agreement or date for equipment deliveries. Arcadia eFuels is the buyer; the same release gives no contract term and says deliveries will begin after the project issues notice to proceed.
Plug shares NASDAQPLUG closed on Nasdaq at US$1.91, up 2.69 per cent, as of 4 p.m. EDT on Sept. 29.
At the Port of Vordingborg, Arcadia plans to use renewable grid electricity to operate Plug's GenEco electrolyzers. Plug's Sept. 29 announcement estimates that the planned facility could produce roughly 110 tons of hydrogen per day, which Arcadia would combine with captured carbon dioxide to make synthetic aviation fuel. No price per megawatt-hour for the electricity appears in that announcement, so its power costs cannot be calculated from Plug's disclosure.
The companies also signed a separate cooperation agreement making Plug the preferred supplier for four other Arcadia developments in Europe and the Americas. Plug described those sites as more than 1 gigawatt of potential electrolyzer capacity, with Arcadia gaining priority access to its manufacturing capacity as each advances. The release gave no purchase price, delivery calendar or firm equipment order for those additional sites.
Arcadia first selected Plug for the same 280-megawatt Vordingborg system in an Oct. 11, 2023 announcement. That release expected a final investment decision by mid-2024 and commercial operation toward the end of 2026. Its hydrogen forecast was about 120 tons per day, compared with the 110 tons per day in Plug's new release; Plug did not explain the lower estimate in its Sept. 29 release.
"Project ENDOR is on the path to final investment decision, and this supply agreement from Plug signifies one of the many project documents that have been finalized," Arcadia eFuels chief executive Amy Hebert said in Plug's Sept. 29 release.
Deliveries Follow Project Notice to Proceed
Arcadia said in a May 21, 2024 update that it had completed front-end engineering and design for ENDOR. It credited Danish authorities with helping secure necessary permits, without identifying individual approvals in that update, and said further collaboration was needed before the investment decision. Plug's latest release does not specify a manufacturing lead time, a notice-to-proceed date or a first-production date.
For comparison within Plug's order book, the company reported on July 7 that a 50-megawatt Australian hydrogen hub had reached a final investment decision, advancing delivery of its electrolyzers. At 280 megawatts, ENDOR's signed supply scope is larger; Plug described that project's investment decision as pending in its Sept. 29 release.
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The European Commission's ReFuelEU Aviation rules require synthetic aviation fuel to account for 1.2 per cent of fuel supplied at EU airports from 2030. Plug's Sept. 29 release says ENDOR is advancing toward a final investment decision without giving its date. It says deliveries will begin after the project issues notice to proceed, without dating that notice.
