Provider of turnkey hydrogen solutions for the global green hydrogen economy Plug Power and the Nikola Corporation, a zero-emission transportation and energy supply and infrastructure solution business, have formed a strategic relationship to accelerate the hydrogen economy.
The pair have signed a Green Hydrogen Supply Agreement which will see Plug supply green hydrogen to Nikola beginning on January 1, 2023. Volumes are estimated to rise to up to 125 metric tons per day (TPD) as Plug’s green hydrogen production network continues to develop. The agreement estimates 125 TPD volume by the end of 2026, with 80% under a take-or-pay contract.
A contract has been awarded by Nikola to Plug to deliver a single 30 TPD hydrogen liquefaction system for Nikola’s recently announced Arizona hydrogen hub. The Plug liquefaction system is part of the first phase of Nikola’s Arizona hydrogen hub, with a potential to scale up to 150 TPD.
Currently, Nikola plans to provide access to up to 300 TPD of hydrogen supply and up to 60 hydrogen dispensing stations by 2026.The company’s Arizona hub is currently undergoing several permitting and rezoning processes, in addition to long-lead equipment being procured.
Plug also plans to purchase up to 75 Nikola Tre fuel cell electric vehicles (FCEVs) over the next three years to bring green hydrogen to its customers in North America, with the first trucks scheduled to be delivered in 2023. Through the initiative, Plug’s current Scope 1 emissions will be reduced by up to 50%, while decarbonizing the hydrogen supply chain for its customers. The FCEVs from Nikola will be paired with Plug’s liquid hydrogen tankers.
“Nikola and Plug share a common vision for sustainable, efficient, energy solutions which supports our commitment to decarbonize the transportation industry,” commented Carey Mendes, president for energy, Nikola. “This strategic relationship will help underpin Nikola’s ambitious growth plans to expand the hydrogen energy business and to support the adoption of Nikola’s zero-emission Class 8 trucks.”
“Today’s announcement demonstrates Plug’s leadership in the green hydrogen economy and its ability to make the adoption of hydrogen as easy as possible,” said Sanjay Shrestha, CSO and general manager of energy solutions for Plug. “Our vertically integrated solutions, which are designed to fit individual customer needs, include hydrogen production equipment or the delivery of green hydrogen fuel, whichever is preferred. We look forward to our strategic relationship with Nikola as we advance the hydrogen economy forward.”
