Elon Musk may have sucked up all the media oxygen by delivering a single Tesla Semi to PepsiCo, but Nikola continues to further its market share ground game in the hydrogen cell space. Nikola recently brokered a deal with Plug Power that involves the purchase of 75 of Nikola’s hydrogen-powered trucks over the next three years. Plug Power plans to use the Class 8 commercial motor vehicles to transport green hydrogen to Nikola’s Arizona plant.
“Nikola and Plug share a common vision for sustainable, efficient energy solutions which supports our commitment to decarbonize the transportation industry,” Carey Mendes, president of Nikola’s energy unit, reportedly stated. The partnership “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.”
Plug Power is expected to supply Nikola with approximately 125 metric tons of sustainable hydrogen daily. The New York-based operation would also sell Nikola the equipment to convert 30 metric tons of hydrogen gas daily. The hydrogen fuel cells Nikola plans to use require a liquified form.
“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 by aligning with industry pioneers, such as Nikola,” Sanjay Shrestha, CSO and General Manager of Energy Solutions for Plug, reportedly said. “Our vertically integrated solutions, which are designed to fit individual customer needs, include hydrogen production equipment or the delivery of hydrogen fuel, whichever is preferred. We look forward to our strategic relationship with Nikola as we advance the hydrogen economy together.”
The mutually beneficial agreement comes at a time when states are implementing stringent zero-emission truck regulations. Freight transportation insiders have been critical regarding issues of infrastructure, cost, and the lack of miles battery electric semis can cover on a single charge. Hydrogen cell rigs are viewed as the primary competitor in terms of long-hauling trucking.
Battery electric trucks typically have a single-charge range of up to 300 miles. The Tesla Semi reportedly hauled a full 80,000-pound load 500 miles before PepsiCo took delivery. Nikola’s Tre hydrogen model is expected to meet or exceed that mark.
Nikola delivered 63 Tre BEV models during the third quarter of 2022, a 50 percent increase over the previous quarter. It appears on track to exceed 100 units by year’s end but may fall short of its internal goals. Its battery-electric rig remains in the middle of the pack in terms of distance per single charge.
One of the key advantages Nikola’s Tre hydrogen possesses in the over-the-road niche involves recharging time. Battery electric trucks require a minimum of two hours to recharge. Reports indicate hydrogen semis can refuel in approximately 15 minutes. Those hours every 500 miles are significant to trucking operations. Drivers watching their hours of service mandates and transportation profits would be forced to pass along the higher costs.
Sources: nikolamotor.com, forbes.com, prnewswire.com, reuters.com
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