Plug, Nikola Join Forces to Move Hydrogen Economy Forward
Plug Power, a leading provider of turnkey hydrogen solutions for the global green hydrogen economy, and Nikola Corporation, a global leader in zero-emissions transportation, energy supply, and infrastructure solutions, said they will work together to move the hydrogen economy forward.
A Green Hydrogen Supply Agreement has been signed by Plug and Nikola. Plug will begin supplying green hydrogen to Nikola on January 1, 2023, with volumes increasing to 125 tonnes per day (TPD) as Plug's green hydrogen production network expands. The contract forecasts 125 TPD volume by the end of 2026, with 80% on a take-or-pay basis.
Nikola has given Plug a contract to provide one 30 TPD hydrogen liquefaction system for the Arizona hydrogen hub. Plug designed, built and made the liquefaction system that will be used in the first phase of Nikola's Arizona hydrogen hub. It can be scaled up to 150 TPD. Nikola plans to provide access to up to 300 TPD of hydrogen supply and up to 60 hydrogen dispensing stations by 2026.
Nikola's Arizona hub is going through the process of getting permits and re-zoning, and long-lead equipment is being bought. The main liquefaction cycle of Plug's hydrogen system uses hydrogen as the refrigerant, which is one of the most energy-efficient and cost-effective designs on the market.
“Nikola and Plug share a common vision for sustainable, efficient energy solutions, which supports our commitment to decarbonising the transportation industry,” said Nikola President, Energy, Carey Mendes. "This strategic partnership will help Nikola's ambitious growth plans to grow its hydrogen energy business and promote the use of Nikola's zero-emission Class 8 trucks."
As part of Plug's commitment to accelerating energy decarbonisation, up to 75 Nikola Tre Fuel Cell Electric Vehicles (FCEVs) will be purchased over the next three years to bring green hydrogen to Plug consumers in North America, with the first trucks arriving in 2023. This programme demonstrates Plug's ambition to decarbonise the hydrogen ecosystem by reducing Plug's existing scope 1 emissions by up to 50% while also decarbonising the hydrogen supply chain for its customers. The acquired FCEVs will be linked with liquid hydrogen tankers from Plug. The Plug hydrogen tanker is the world's largest and lightest trailer, capable of carrying a significant amount of weight on the road.
“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.”
Plug, a leader in the industry, is building the first complete green hydrogen ecosystem to make 500 TPD of green hydrogen in North America by 2025 and 1,000 TPD worldwide by 2028. Nikola thinks that adding Plug's green hydrogen supply to other sources of hydrogen will help build a strong portfolio and increase sales of Nikola FCEVs.