The mechanism of ammonia formation by nitrogenase has been studied usi
ng the hybrid density functional method B3LYP with large basis sets. M
ost of the results were obtained with a simple iron dimer model, but a
few calculations were also done for larger models, the largest one co
ntaining eight iron atoms. The model clusters were in general chosen t
o have a net neutral ionic charge with the iron atoms in the low Fe(II
) oxidation state with ferromagnetically coupled spins. In a key resul
t we find that placing a hydrogen atom on a bridging sulfur dramatical
ly changes the affinity of the cluster for N-2. In the dimer model wit
hout this hydrogen atom, N-2 forms only a weak end-on bond to one of t
he iron atoms, but with the hydrogen atom present N-2 becomes strongly
activated in a bridging coordination. The effect of the hydrogen atom
can be described as a local promotion effect reducing the Fe-2(II,II)
system to an Fe-2(I,II) set. A very similar promotion effect is seen
also for the larger clusters. Another interesting effect noted for the
Fes cluster is that a cavity between the cubanes in the cluster can b
e opened by reducing the cluster with two hydrogen atoms on bridging s
ulfurs. Coupled electron and proton transfer and energetic aspects are
emphasized. Most steps of ammonia formation are shown to lead to H at
om addition energies in the range 50-60 kcal/mol, which is argued to b
e optimal for the function of nitrogenase.