Wall Street Journal By Bob Tita 2/11/2023
Manufacturer relying on partnerships to support 7,500 heavy-duty vehicles by 2026has started work on hydrogen plants, part of a fueling network the company intends to underpin its push to compete in the nascent zero-emissions truck market.
The seven-year-old manufacturer has also signed up a handful of hydrogen producers that have agreed to supply hydrogen for Nikola vehicles in parts of the U.S. and Canada, as the company seeks to have enough fuel for about 7,500 heavy-duty trucks by 2026.
The planned supply network is critical for Nikola’s strategy to begin assembling hydrogen fuel-cell electric trucks for the market later this year. Unlike battery-electric vehicles that can be recharged with electricity in many existing places, Nikola’s trucks need hydrogen to keep them on the road.
“The infrastructure for hydrogen doesn’t really exist for heavy transport,” said Carey Mendes, president of Nikola’s energy business. “If we’re going to sell hydrogen fuel-cell trucks, we have to have that infrastructure.”
Nikola, based in Arizona, said it began work late last year on a plant in the Phoenix suburb of Buckeye to extract hydrogen from water. Nikola forecast the initial hydrogen production volume at about 30 metric tons a day by late 2024. The company said it is negotiating an investment agreement for the plant with Fortescue Future Industries, a unit of Australian iron ore company Fortescue Metals Group Ltd.
A companion storage plant is planned at the site with hydrogen company Plug Power Inc., Nikola said. The storage plant will be able to turn hydrogen gas into a liquid at very low temperatures, making it easier to transport. Nikola said it intends to ship the hydrogen by truck to the company’s first three filling stations in California.
The hydrogen fuel network represents one of Nikola’s biggest challenges as it prepares to compete with battery-electric truck rivals, including electric-car maker Tesla Inc. and diesel truck manufacturers rolling out electric models. Many established truck makers have said they expect the limited availability of hydrogen to hold down demand for hydrogen trucks, and predict battery-electric trucks will become the first choice for truck operators seeking an electric alternative to diesel.
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