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Plug Power will supply Nikola with hydrogen

Plug Power and Nikola Corporation announce the signing of a renewable hydrogen supply agreement.
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Plug Power and Nikola Corporation announce the signing of a renewable hydrogen supply agreement.

A strategic agreement

Plug Power will provide renewable hydrogen to Nikola beginning January 1, 2023. As such, the company is committed to supplying up to 125 tons of hydrogen per day (TPD) to Nikola. The agreement calls for a volume of 125 PDTs by the end of 2026, 80% of which will be under a take-or-pay contract.

Nikola awards Plug Power a contract to provide a 30TPD hydrogen liquefaction system for a hydrogen hub in Arizona. The liquefaction system designed and manufactured by Plug Power is destined for the first phase of the Nikola hydrogen hub in Arizona. In addition, the project has the potential to expand to 150 PDT.

Nikola plans to provide access to up to 300 TPD of hydrogen supply. In addition, the company plans to have 60 hydrogen fueling stations in place by 2026. Nikola’s Arizona hub is currently going through the permitting and rezoning process, and long-term equipment purchases are underway.

Confirmed prospects

Carey Mendes, President of Nikola Corporation, states:

“Nikola and Plug share a common vision for sustainable and efficient energy solutions, which supports our commitment to decarbonizing the transportation industry. This strategic relationship will help support Nikola’s ambitious growth plans to expand the hydrogen energy business and support the adoption of Nikola’s Class 8 zero-emission trucks.”

Plug Power thus underlines its commitment to decarbonize the hydrogen ecosystem. The company aims to reduce current emissions by 50% by purchasing up to 75 electric vehicles within three years.

Plug Power wants to decarbonize the hydrogen supply chain for its customers. Indeed, the company’s hydrogen tanker is the largest and lightest trailer. This represents significant payloads on the road.

Sanjay Shrestha, CSO and general manager of energy solutions for Plug says:

“The announcement demonstrates Plug’s leadership in the green hydrogen economy and its ability to make hydrogen adoption as easy as possible. Our vertically integrated solutions, which are designed to meet individual customer needs, include hydrogen production equipment or green hydrogen fuel delivery, whichever is preferred. We look forward to our strategic relationship with Nikola as we advance the hydrogen economy.”

Finally, Plug Power’s ambition is to have 500 TPD of renewable hydrogen production network in North America by 2025. In addition, the company hopes to have 1,000 PDTs globally by 2028.

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