Nikola To Accelerate Hydrogen Fueling, APS Facilitating Low-Cost Production

Nikola To Accelerate Hydrogen Fueling, APS Facilitating Low-Cost Production

The manufacturer of battery-electric and hydrogen-electric trucks, Nikola Corporation has secured an innovative electric rate schedule with Arizona Public Service Company (APS) that accelerates the production of hydrogen-based fueling solutions for the transportation industry.

Arizona Corporation Commission’s (ACC) facilitating low-cost hydrogen production, and their electric rate schedule reduces greenhouse gas emissions in the transportation sector. Also, providing benefits to key constituents via novel grid-balancing solutions will enable Nikola to magnify its hydrogen-based fueling.

ACC provides Nikola with a competitive electric rate specifically designed for the production, processing, and dispensing of hydrogen, which will support, among other things, enabling a zero-emission heavy-duty freight corridor along the I-10 freeway between Los Angeles and Phoenix.

Interestingly, APS’s competitive electric rate will help lead the creation of the hydrogen economy in Arizona. Nikola estimates that it will be able to deliver hydrogen at market leading prices and within the ranges required for Nikola to offer competitive lease rates for its trucks customers.

Moreover, this agreement will encourage Nikola to deploy capital within the state, increase electric load relating to hydrogen production, and further develop and employ a highly skilled and well-educated workforce.

Celebrating their achievement, Nikola CEO, Mark Russell stated, “Nikola values the joint efforts of APS and the ACC to enable competitive electrolytic hydrogen production. The approval of this special rate for hydrogen production is critical for advancing the future of zero-emissions transportation and building a hydrogen economy.”

“Through this agreement, Nikola has assured a reliable and competitively priced source of electricity that will allow us to commence the development of hydrogen production facilities to serve the fueling needs of our truck customers,” said Pablo Koziner, President of Energy and Commercial Nikola.

Pablo further added, “The agreement sets an important precedent that innovative operational solutions can be developed for the economic production maximizes that maximize benefits to all stakeholders.”

The approval of this agreement marks an important milestone. Further, Nikola will work with APS to finalize site selection and interconnection requirements to install its first hydrogen production facility in Arizona.

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