Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has signed a contract to deliver a Basic Engineering and Design Package (BEDP) for a 500 megawatt (MW) electrolyzer project in Europe. The contract, signed on January 29, 2024, increases Plug’s total amount of BEDP contracts to 4.1 gigawatts (GW).
Plug started offering a Basic Engineering Design Package (BEDP) to the market in 2022. The BEDP provides the engineering and plant integration details to allow a full plant front-end engineering design (FEED) study to proceed purposefully and efficiently to understand, in detail, the capital and operating expenditures associated with running a potential plant. The BEDP approach enables Plug’s customers to seamlessly integrate the electrolyzer package into the project’s broader engineering and construction plan. Customers also benefit from Plug’s experiences building its own plants and sharing lessons learned as the only electrolyzer OEM supplier building green hydrogen plants. Plug commissioned the largest 15TPD electrolytic liquid hydrogen production plant, and largest PEM electrolyzer deployment operating in the U.S., in January 2024.
“Plug’s ability to secure BEDP contracts totaling 4.1GW demonstrates that this approach is relevant to the market,” said Andy Marsh, CEO of Plug. “Moreover, Plug’s conversion rate after providing a BEDP is high. We have already been awarded 1.1GW worth of electrolyzer supply, subject to positive FID, and 100MW are in execution for Galp, an oil & gas company in southern Europe.”
To date, no project has been lost by Plug to the competition following a BEDP, evidenced by key customers Galp, Uniper, and Arcadia. Plug capitalizes on 35 years of oil and gas engineering and expertise coming from the Frames acquisition. This is a major benefit for customers developing large electrolyzer plants with limited risks.
