Nikola Inks Hydrogen Fuel Supply Deal for FCEV Trucks
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Nikola Corp. has reached a deal to buy hydrogen from BayoTech to fuel the truck manufacturer’s Class 8 Tre fuel cell electric vehicles, it said.
Phoenix-based Nikola is set to begin taking delivery of low-carbon hydrogen from BayoTech in Missouri later this year and in California from 2024 onward, it said.
Nikola also plans to acquire up to 10 HyFill transport trailers from BayoTech, which will enable distribution of hydrogen between production sites and refueling stations that serve FCEV fleets.
Nikola did not provide details on how much hydrogen it agreed to purchase or how much it will pay for the fuel and refueling trailers. Company representatives did not respond to requests for comment.
In turn, BayoTech will buy up to 50 Nikola Class 8 FCEVs over the next five years to make deliveries to the Albuquerque, N.M.-based manufacturer’s other customers, Nikola said. The first 12 are scheduled to be delivered in 2023 and 2024.
Nikola announced today a new strategic supply agreement that includes up to 50 Nikola Class 8 hydrogen fuel cell electric trucks, hydrogen transport trailers, and hydrogen produced at a distributed network of hubs. Learn more about Nikola's latest partnership.… pic.twitter.com/0NP4czPBRG — Nikola Motor Company (@nikolamotor) July 13, 2023
“Nikola and BayoTech are united by a common goal of providing reliable access to hydrogen throughout the United States,” said Nikola CEO Michael Lohscheller.
The deal is part of Nikola’s plan to build a truck manufacturing, hydrogen production and supply infrastructure ecosystem. Earlier in July, the company said it won a $41.9 million grant to build six Southern California refueling stations. The grant was awarded by the California Transportation Commission under the Trade Corridor Enhancement Program.
Did you hear the news? @H2Bayo and @nikolamotor have partnered to advance #zeroemission #hydrogen delivery!
Read the full story here: https://t.co/12gjm4C6sw pic.twitter.com/L1Q1VpvtvM — BayoTech Hydrogen (@H2Bayo) July 17, 2023
In May, Nikola said it was teaming up with Herndon, Va.-based infrastructure specialist Voltera to develop up to 50 hydrogen refueling stations. Voltera is backed by Swedish investment group EQT.
Nikola said it had 178 hydrogen truck sales orders from 14 end customers as of June 16, compared with 140 orders from 12 customers in May. The company in its first-quarter 2023 earnings release announced a switch to focus exclusively on FCEVs and to halt production of pure battery-electric trucks.
However, Nikola’s aim to focus solely on the hydrogen sector will require more cash, and at the moment it is still seeking shareholder approval to raise the funds to do so. On July 6, Nikola adjourned its 2023 annual stockholder meeting until Aug. 3 after the company failed for a second time to win enough support from investors to issue more shares.
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