Nikola, KeyState Considering Hydrogen Partnership

Electric vehicle (EV) manufacturer Nikola said on Monday it was working with blue hydrogen producer KeyState Natural Gas Synthesis to build Pennsylvania’s first low carbon hydrogen supply chain. Nikola added that it was looking to complete a definite agreement with KeyState to expand supply of hydrogen for its fuel-cell EVs (FCEVs).

The KeyState site in Pennsylvania is expected to be operational in 2026 and will also supply ammonia and urea for industrial and transportation markets.

Nikola is also building a hydrogen fuel cell electric semi-truck with a range of up to 500 miles and a refuel time of under 20 minutes that would enable it to carry freight over longer distances.

The electric truck maker added that KeyState plans to supply the company with up to 100 tonnes per day of low-carbon hydrogen, which can supply fuel for up to 2,500 Nikola Tre FCEVs.

That figure could replace over 51 million gallons of diesel per year, Nikola said.

Nikola’s move is considered as part of the company’s effort to maximize value under the Inflation Reduction Act, which was signed into law by Biden in August. The law grants companies that produce hydrogen up to $3 per kilogram of the fuel for the first five years.

Nikola said earlier in October that the IRA would help reduce costs across its energy and electric truck businesses.

KeyState Natural Gas Synthesis is a joint venture between KeyState Energy and Frontier Natural Resources Inc.

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