Plug Power Set to Supply Nikola with Green Hydrogen


Plug Power and Nikola Corp. have executed a green hydrogen supply agreement. Plug will be supplying green hydrogen to Nikola starting January 1, 2023, with volumes ramping up to 125 tons per day (TPD) as Plug’s green hydrogen production network continues to come online. The agreement anticipates 125 TPD volume by the end of 2026, with 80% under a take-or-pay contract.

Nikola has awarded Plug the contract to provide one 30 TPD hydrogen liquefaction system for Nikola’s recently announced Arizona hydrogen hub. The Plug designed, engineered and manufactured liquefaction system is for the first phase of Nikola’s Arizona hydrogen hub, with a potential to scale up to 150 TPD. Nikola plans to provide access of up to 300 TPD of hydrogen supply and up to 60 hydrogen dispensing stations by 2026. Nikola’s Arizona hub is currently going through the permitting and rezoning process, and procurement of long-lead equipment is underway. Plug’s hydrogen liquefaction system has one of the most energy-efficient and cost-effective designs on the market, utilizing hydrogen as the refrigerant in the main liquefaction cycle.

“Nikola and Plug share a common vision for sustainable, efficient, energy solutions which supports our commitment to decarbonize the transportation industry,” says Carey Mendes, Nikola’s president of energy. “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.”

As part of Plug’s commitment to advancing the decarbonization of energy, up to 75 Nikola Tre Fuel Cell Electric Vehicle (FCEV) will be purchased over the next three years to bring green hydrogen to Plug customers in North America, with the first trucks being delivered in 2023. This initiative underscores Plug’s commitment to decarbonize the hydrogen ecosystem by driving down Plug’s current scope 1 emissions by as much as 50%, while decarbonizing the hydrogen supply chain for its customers. The acquired FCEVs will be paired with Plug’s liquid hydrogen tankers. The Plug hydrogen tanker is the largest and lightest trailer ever manufactured, with unprecedented over-the-road payloads.

“This announcement demonstrates Plug’s leadership in the green hydrogen economy and its ability to make the adoption of hydrogen as easy as possible,” states 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.”

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