US hydrogen players Plug Power, Nikola agree collaboration

Nikola Corp (NASDAQ:NKLA), a maker of battery-electric and hydrogen-electric vehicles, and hydrogen technology company Plug Power Inc (NASDAQ:PLUG), on Thursday announced a strategic collaboration.

As part of the partnership, Plug will buy 75 Nikola Tre fuel-cell electric vehicles (FCEVs) over the next three years with first deliveries in 2023. It will use these hydrogen-powered trucks to deliver green hydrogen to customers in North America. The trucks will be combined with Plug’s liquid hydrogen tankers.

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The collaboration will also see Nikola purchase a liquefaction system from Plug for its recently announced hydrogen hub project in the City of Buckeye, Arizona. The liquefaction system will be for the first phase of the hub and will have a capacity of 30 tonnes per day with potential to reach 150 tonnes per day.

In addition, the companies have signed a green hydrogen supply agreement. From January 1, 2023, Plug will be supplying green hydrogen to Nikola with volumes gradually increasing to up to 125 tonnes per day by the end of 2026 as Plug’s green hydrogen production network comes onstream. Eighty percent of this maximum volume is under a take-or-pay contract.

“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,” said Plug’s Sanjay Shrestha.

"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," commented Nikola president, energy, Carey Mendes.