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Focusing on fluctuations in the inventory value of the commissioning of Nikola Corporation (NASDAQ: NKLA) electric trucks neglects much of its business plan and the sale of hydrogen fuel for your mobile fuel trucks and who needs it.
“Hydrogen is the key to everything in Nikola,” says Chief Executive Trevor Milton. “It’s our ability to separate ourselves from our competitors.” Nikola is not just a trucking company. We are a power generation company.
“We’ve spent more time cutting the hydrogen load than anything else, adding construction trucks. Trucks are just a product that consumes energy, but also a product to leave the world blank.”
The history of Nikola’s zero-emission Class 8 mobile fuel trucks is a little baffling, as the company builds a battery-powered electric cabin style before making more aerodynamic traditional hydrogen trucks.
Production of the Nikola Tre begins next year in a German joint venture with Italian truck manufacturer IVECO. The Tre will also be shipped in kits to Nikola’s green plant in Coolidge, Arizona, where they will be assembled by the end of 2021 at the end of the first construction.
Brewery for early fuel mobile constructions
Production of mobile fuel trucks begins in 2023 when the time of the Coolidge plant is completed. Some Nikola Two mobile fuel models will be built by hand at a pilot plant in Coolidge next year for Anheuser Busch Inbev NV (NYSE: BUD), which ordered up to 800 mobile fuel trucks in 2018.
“They’ve been a risk-sharing spouse from the start,” Nikola’s CEO Mark Russell said. “So they’ll take control trucks and accumulate miles for us and gain knowledge for us.”
Nikola made his first prototype with a Nikola Two in November 2019 when he brought a load of Budweiser beer to a St. Louis Blues hockey game. (Photo: Nikola)
Nikola will begin construction of hydrogen supply stations near Interstate 10 and near the Anheuser-Busch plant in Van Nuys, California. A station is currently planned near a distribution center in Chandler, Arizona. City twinning allows you to refuel at the end of the 400-mile route.
“We can scale those stations with a capacity ranging from 210 trucks to 1,000 trucks,” Russell said. “We can refuel from 400 to 2000 trucks with two stations for this pair of cities.”
Nikola has orders for 14,000 mobile fuel trucks that estimate to generate $10 billion in revenue. Each truck will be leased for seven years with 1 million kilometers of fuel and included.
Making hydrogen as the sun shines
Nikola signed an acquisition order in June worth more than $30 million from electrolysers from the Norwegian company NEL ASA. Electrolysers use electrical energy to break water into hydrogen and oxygen through an electrochemical reaction that requires external parts or moving parts.
The plan is for electrolyzers to be placed with solar and wind renewable energy. Both resources are unpredictable. Nikola will run the stations 24 hours a day to capture power when available.
“The massive challenge as the world moves from fossil fuels to renewable electricity resources is [that] renewable resources do not produce on demand,” Russell said. “It’s not what other people expect when they transfer transfers. They expect to have electricity on demand, but [renewable] generation resources are transferable and variable.”
Managing the mismatch between maximum availability of sunlight and wind deserves to be less difficult as Nikola develops his truck business.
“We can take a lot of that extra force at best and turn it into hydrogen,” Russell said. “Then we don’t want to consume electrical power when the rest of the grid wants it so much at peak demand.
“The rest of the hours of less activity, we can take some of that power that is wasted in a different way right now,” he said. “We are a reaction to prayer for network operators around the world, because we will help balance those renewable energy resources in their networks.”
A proposal today, yetArray..
According to the California Fuel Cell Association, the maximum price of the 42 hydrogen stations in service in California ranges from $12.85 to $16 depending on the kilogram. These stations are designed for a small number of mobile fuel passenger cars on the road, such as the Toyota Mirai.
“Standardization is when it comes to the hydrogen charge,” Milton said. “There are almost no stations in the United States that use the same footprint. Each hydrogen station is built differently, it has other engineering, other licenses, another compressor, everything is another.”
Nikola spent four years creating a non-unusual zero-emission electrolystor station design, Milton said.
“By standardizing all of this, we were going to reduce the [station’s] charge to less than $16 million,” compared to today’s $50 million, he said. The target is $10 million according to the season.
“These plants are very expensive to build,” Milton said. “The explanation for why no one has done it yet is that if you don’t have a guaranteed source of hydrogen 24 hours a day, never get your cash back.”
Less effective doesn’t mean more expensive
Milton recognizes that generating hydrogen to convert it into electrical energy is less effective than plugging in a battery-powered truck.
“But that doesn’t mean driving is more expensive. The power and charge of operations are not the same,” he said. “It can produce very reasonable hydrogen in large quantities and distribute it even less expensive than electricity can.”
In addition to refuelling the trucks he rents, Nikola plans at least one public island at the mobile fuel passenger car station. The purpose is to block the application 18 months before the structure of a station. The purpose is 90% use when a station is in line with at least 30 hours of storage, said Kim Brady, Nikola’s chief financial officer.
“We’re going to sell everyone the life of hydrogen alive,” Milton said. “Our resorts just for us. We will not only sell them [in] our facilities. We’ll distribute them to others.
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