Electric truck maker Nikola and Plug Power, a mobile fuel manufacturer that aims to become the first U. S. hydrogen supplier, is a mobile fuel supplier. Made from water and renewable energy, they say they have formed a partnership of sources to boost the use of green hydrogen and that includes Plug’s acquisition of Nikola’s fuel. Mobile trailers.
Under the terms of its agreement, Plug will provide Nikola with up to 125 tons of green hydrogen daily and will also sell its devices to convert 30 tons of hydrogen fuel daily into a liquefied form at a hydrogen production plant Nikola is building. In Latham, New York, it also plans to acquire 75 of Nikola’s hydrogen trucks over the next 3 years, which will be used to ship tankers loaded with carbon-free fuel.
The companies provided important financial points about the deal.
The deal appears to be favorable to either company, which wants to develop the use of green hydrogen, derived from renewable and carbon-free resources than vegetable fuel, for transportation, desktop power generation and commercial applications. Under the leadership of CEO Andy Marsh, Plug is building hydrogen refineries in the U. S. The U. S. will be able to produce 500 consistent tons per day through 2025 and double that volume by 2028. Phoenix-based Nikola, which sells battery-forced semiconductors built at its Coolidge, Arizona, plant, says it will begin generating expired mobile hydrogen fuel trucks there next year.
“Nikola and Plug share a percentage view of sustainable and effective energy that responds to our commitment to decarbonize the transportation industry,” Carey Mendes, president of Nikola’s energy unit, said in an emailed statement. The partnership with Plug “will help Nikola’s ambitious expansion plans to expand the hydrogen power sector and the adoption of Nikola’s Class 8 zero-emission trucks. “
(For more on Plug Power’s plans, see Is Green Hydrogen the Fuel of the Future?This CEO is on it)
Both companies expect to profit from hydrogen incentives created by the Inflation Reduction Act signed into law this year by President Joe Biden. It includes blank hydrogen production tax credits that supply up to $3 per kilogram of fuel, helping to make it more competitive with diesel.
While hydrogen is a less fuel-efficient option for forcing a vehicle than for charging a battery, Nikola and other corporations that are developing hydrogen trucks say it’s a more convenient option for long-haul trucks. That’s because a mobile fuel force formula is rarely as heavy as the massive batteries needed for giant drill rigs and can be refueled at about the same time as a diesel truck. up to 500 miles through refueling.
These can prove to be problematic as the practicality of electric trucks like Tesla’s new Semi is yet to be resolved. This month, Elon Musk unveiled the first production versions, purchased through Frito-Lay, without disclosing the trucks’ load as well as their weight and usability compared to diesel-powered semi-trailers. One observer estimated that, based on Tesla’s shared video of its seedlings in action, they may only be able to perform a portion of a traditional truck’s shipment.
The news did not affect the shares of any of the companies amid a sell-off in the market on Thursday. Plug fell 5. 2% to close at $14. 42 on the Nasdaq, while Nikola rose less than 1% to $2. 13.