Plug Power Wins 275 MW Electrolyzer Contract for One of North America's Largest Green Ammonia Plants in Quebec
Plug Power will supply a 275 MW PEM electrolyzer system for Hy2gen's Courant project in Baie-Comeau, Quebec, a facility that aims to produce 230,000 tonnes of renewable ammonia per year to decarbonize the Canadian mining industry.
Plug Power has been selected to supply a 275 MW GenEco PEM electrolyzer system for Hy2gen Canada’s Courant project in Baie-Comeau, Quebec, the companies announced on April 2. The deal represents one of Plug Power’s largest electrolyzer contract awards to date and advances what Hy2gen describes as one of North America’s largest decarbonized ammonium nitrate facilities.
The Courant project will use hydroelectric power from the Hydro-Quebec grid to split water into hydrogen via proton exchange membrane (PEM) electrolysis. That hydrogen will then be converted into low-carbon ammonia, which in turn will be processed into renewable ammonium nitrate for use as mining explosives across Quebec, Central Canada, and Eastern Canada. The facility is designed to produce approximately 230,000 tonnes of renewable ammonia annually.
A Strategic Location
Baie-Comeau was chosen for its proximity to Hydro-Quebec’s low-carbon electricity supply, its established industrial infrastructure, and its deep-water port, which will support both equipment delivery during construction and distribution of finished product once operations begin. Quebec’s Ministry of Economy, Innovation and Energy allocated 307 MW of renewable electricity to the project in 2024, a prerequisite for Hy2gen to advance the facility’s engineering phase.
The contract announced this week covers the front-end engineering design (FEED) stage, during which Plug Power will handle electrolyzer integration, plant configuration, and performance optimization. The PEM electrolyzer stacks will be manufactured at Plug’s gigafactory in Rochester, New York, which has a production capacity of 100 MW per month.
Timeline and Economic Impact
Hy2gen expects to reach a final investment decision by late 2026. If approved, construction would begin in 2027, with full commissioning targeted for 2029. The project is expected to create up to 1,000 jobs during the construction phase and around 300 permanent positions once operational.
Hy2gen AG, based in Wiesbaden, Germany, is a Power-to-X developer with a current pipeline of 3.4 GW of electrolysis capacity in planning or construction and an additional 15 GW in development across five countries. The Courant project is intended to serve as a proof of concept for similar ammonia production facilities that Hy2gen plans to develop in the Americas and Nordic countries. Strategic investors in the company include Trafigura, TechnipEnergies, CDPQ, Mirova, and the Hy24 infrastructure fund.
Plug Power’s Hydrogen Bet
For Plug Power, the Courant award arrives at a time when the company is working to demonstrate that its pivot toward large-scale green hydrogen infrastructure can generate sustained revenue. The Latham, New York-based firm currently operates hydrogen production plants in Georgia, Tennessee, and Louisiana with a combined capacity of 40 tonnes per day, and has deployed more than 72,000 fuel cell systems and 275 fueling stations across five continents. Plug Power shares rose more than seven percent on the day of the announcement.
“Being selected as the electrolyzer supplier for Hy2gen’s Courant project underscores Plug’s ability to support large-scale hydrogen and hydrogen-derived products,” said Jose Luis Crespo, Plug Power’s president and CEO, in the press release.
Mining’s Decarbonization Challenge
The Courant project targets a specific and often overlooked segment of industrial emissions: the production of ammonium nitrate used in mining explosives. Conventional ammonium nitrate manufacturing relies on natural gas-derived hydrogen, making it a significant source of carbon dioxide. By substituting green hydrogen produced from Quebec’s hydroelectric grid, Hy2gen aims to offer a drop-in replacement that reduces the carbon footprint of mining operations without requiring changes to existing blasting practices.
Cyril Dufau-Sansot, CEO of Hy2gen, characterized the project as evidence that renewable ammonia production is commercially viable in the Americas. “Realizing renewable ammonia production here proves that we can confidently develop our ammonia projects in the Americas and Nordic countries,” he said.
The project also reflects a broader trend in Quebec’s energy strategy. The province has positioned its abundant and low-cost hydroelectric power as a competitive advantage in attracting green hydrogen and industrial decarbonization projects, allocating dedicated electricity blocks to qualified developers through the Ministry of Economy, Innovation and Energy.