Nikola and Plug Announce Strategic Collaboration to Push Hydrogen Economy Forward
Plug to purchase up to 75 Nikola Tre hydrogen fuel cell electric vehicles for green hydrogen delivery
Nikola to purchase 30 metric-tons per day liquefaction system from Plug for the Ariz. hydrogen hub project
Companies have signed an innovative Green Hydrogen Supply Agreement with synergies for both Nikola and Plug’s business models
PHOENIX — December 15, 2022 — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, and Plug Power (Nasdaq: PLUG), a leading provider of turnkey hydrogen solutions for the global green hydrogen economy, today announced a strategic relationship focused on moving the hydrogen economy forward.
The Nikola Tre fuel cell electric vehicle (FCEV) is an industry leading, hydrogen-powered cabover for longer or continuous metro-regional applications and is expected to have a range of up to 500 miles. Plug will purchase up to 75 Nikola Tre FCEVs over the next three years, with the first trucks being delivered in 2023. The Nikola trucks will help to deliver green hydrogen to customers in North America as part of Plug’s commitment to advancing the decarbonization of energy. The acquired FCEVs will be paired with Plug’s liquid hydrogen tankers, which are recognized as market-leading trailers manufactured with unprecedented over-the-road payloads.
Nikola’s recently announced hydrogen hub project, located in the City of Buckeye, Ariz., is currently going through a permitting and rezoning process, with the procurement of long-lead equipment also underway. Plug has been selected to provide its fully integrated liquefaction system for the project which will be engineered to produce 30 metric-tons per day in its first phase, scaling up to 150 metric-tons per day. The low carbon hydrogen supply from the hub will further support the deployment of the Nikola Tre FCEV program and Nikola’s hydrogen energy business.
The companies have also executed a 125 metric-tons per day Green Hydrogen Supply Agreement. This innovative green hydrogen supply and offtake partnership is expected to provide Nikola with a minimum of 100 metric-tons per day of hydrogen, with the option to increase volume over time, and will allow Nikola to source hydrogen from multiple locations across the country as Plug continues to bring on new supply facilities.
“Nikola and Plug share a common vision for sustainable, efficient, energy solutions which supports our commitment to decarbonize the transportation industry,” said Nikola President, Energy, Carey Mendes. “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.”
“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,” 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 hydrogen fuel, whichever is preferred. We look forward to our strategic relationship with Nikola as we advance the hydrogen economy together.”
The Nikola Tre battery-electric vehicle, with a range of up to 330 miles, started serial production in March 2022 and is available for immediate delivery. For more information, visit Nikola Electrify Your Fleet online.
ABOUT NIKOLA CORPORATION
Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.
NIKOLA FORWARD-LOOKING STATEMENTS
Certain statements included in this press release that are not historical facts are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the anticipated benefits of the planned collaboration between Nikola and Plug. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Nikola’s management. We cannot assure you that forward-looking statements will be achieved and forward-looking statements are not predictions of actual performance. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to, the failure to realize the anticipated benefits of the announced collaboration between Nikola and Plug; design and manufacturing changes, challenges and delays; economic, financial, legal, supply chain, regulatory, political and business conditions and changes in domestic and foreign markets; the potential challenges arising from COVID-19; the outcome of legal, regulatory and judicial proceedings to which Nikola is, or may become a party; demand for and customer acceptance of Nikola’s trucks; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the rollout of Nikola’s business and the timing of expected business milestones, including delivery of trucks for sale; the effects of competition on Nikola’s future business; the availability of capital; risks associated with changes in accounting treatment or accounting standards; and the other risks detailed from time to time in Nikola’s reports filed with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended September 30, 2022 and other documents Nikola files with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and Nikola specifically disclaims any obligation to update these forward-looking statements.