Nikola Sells Arizona Hydrogen Production Project to Partner

Nikola Sells Arizona Hydrogen Manufacturing Venture to Associate

A rendering of the Phoenix Hydrogen Hub. (Fortescue Future Industries)

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Truck maker Nikola agreed to promote its Phoenix Hydrogen Hub venture to companion Fortescue Future Industries for $24 million, the businesses mentioned.

Nikola teamed up with Australia-based FFI to develop the Buckeye, Ariz., venture, with a memorandum of understanding signed in January. FFI is a unit of one of many world’s largest iron ore producers, Fortescue Metals Group.

FFI has the funds and assets — its father or mother firm has a market capitalization of greater than $47 billion — required to completely develop the inexperienced hydrogen venture, Nikola mentioned, and the businesses are engaged on a gasoline provide deal for Nikola’s Class 8 vans.

The transaction unloads capital commitments for cash-strapped Nikola and is the newest in a sequence of constructive developments for the Phoenix-based firm, which plans to fabricate heavy-duty, hydrogen-powered vans and develop a refueling infrastructure alongside that, analysts say.

Phoenix Hydrogen Hub is predicted to supply its first gasoline by “the center of this decade,” Nikola mentioned, including that the venture is within the closing levels of the allowing course of.

FFI mentioned the deal was “its first main transfer in america” after the Inflation Discount Act was handed in 2022. Part One of many venture is ready to be an 80-MW electrolyzer and liquefaction facility, which is able to be capable to produce as much as 12,000 metric tons of liquefied inexperienced hydrogen yearly, the corporate mentioned.

The anticipated preliminary output of the power is sufficient to displace 10 million gallons of diesel consumption per 12 months, FFI mentioned, including that the positioning might scale up manufacturing to assist meet future demand.

Vertical Analysis Companions analyst Jeffrey Kaufman 

Developments such because the Phoenix hub are the “first drops within the bucket” for the creation of a hydrogen manufacturing and refueling infrastructure community that will profit U.S. carriers trying to decarbonize their fleets and meet Nikola’s gasoline wants, Jeffrey Kauffman, Vertical Analysis Companions analyst, instructed Transport Matters on July 20.

Elsewhere within the U.S., FFI is evaluating the feasibility of changing a former coal mine right into a inexperienced hydrogen manufacturing facility in Centralia, Wash.

Pushed by mining mogul and inexperienced hydrogen promoter Andrew Forrest, FFI is engaged on inexperienced hydrogen tasks in 10 nations.

What within the World?

Fortescue Future Industries has inexperienced hydrogen tasks in:

• Argentina

• Australia

• Brazil

• Canada

• Egypt

• Germany

• Kazakhstan

• Namibia

• Papua New Guinea

• United Kingdom

Nikola, in the meantime, is diversifying its hydrogen provide infrastructure exterior the venture in its house state.

Earlier in July, the firm inked a deal to purchase hydrogen from Albuquerque, N.M.-based BayoTech. Nikola is ready to start taking supply of low-carbon hydrogen from BayoTech in Missouri this 12 months and from 2024 onward in California, it mentioned.

Nikola additionally plans to amass as much as 10 HyFill transport trailers from BayoTech, which is able to allow distribution of hydrogen between manufacturing websites and refueling stations.

In flip, BayoTech will purchase as much as 50 Nikola gasoline cell electrical car semis over the subsequent 5 years to make deliveries. The primary 12 are scheduled to be delivered this 12 months and subsequent. FCEV manufacturing at Nikola’s Coolidge, Ariz., manufacturing facility is ready to start earlier than the top of July, sources near the corporate say.

In Could, Nikola teamed up with Herndon, Va.-based infrastructure specialist Voltera to develop as much as 50 hydrogen refueling stations. Voltera is backed by Swedish funding group EQT.

Beforehand, the firm additionally inked offers with TC Vitality and Wabash Valley Sources to supply and supply low-carbon hydrogen in Canada and Indiana.

The financing of Nikola’s formidable enlargement plans obtained a latest increase. On July 17, Delaware Gov. John Carney permitted an modification to Part 242 of the Delaware Basic Company Legislation.

How efficient have third-party providers proved to be for fleets? Let’s discover out with Michael Precia of Fleetworthy Options and Dan Rutherford with Summit Digital CFO by Anders. Tune in above or by going to  

Underneath the modification, the edge for amending an organization’s certificates of incorporation to extend its licensed share complete would change from a majority of the excellent frequent inventory to a majority of the shares voting on the proposal.

Till now, Nikola had been unable to safe sufficient votes to approve a share challenge it argues is significant to financing manufacturing of the Tre FCEV Class 8 truck.

Nikola adjourned its annual assembly for a second time July 6 after failing to win sufficient shareholder help. The adjournment was till Aug. 3. Delaware’s modification shall be efficient Aug. 1.

“Whereas the corporate isn’t but out of the woods by way of capital increase or money burn, that path is turning into clearer and seems extra achievable. It’s trying like Nikola shall be able to see itself to 2025-2026, when money circulation break-even may very well be occurring,” Vertical Analysis Companions’ Kauffman mentioned in a July 19 analysis observe issued earlier than the FFI deal was introduced.

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