Nikola and Plug Power enter key hydrogen supply, vehicle purchase agreement
Plug Power (NASDAQ:PLUG) and Nikola (NASDAQ:NKLA) announced that the two companies entered into a strategic relationship focused on moving the hydrogen economy forward.
The green hydrogen supply agreement will start on January 1. Plug Power (PLUG) will ramp up green hydrogen to Nikola (NKLA) up to 125 tons per day as its hydrogen production network continues to come online. The agreement anticipates 125 TPD volume by the end of 2026, with 80% under a take-or-pay contract.
Nikola has awarded Plug the contract to provide one 30 TPD hydrogen liquefaction system for Nikola's recently announced Arizona hydrogen hub. The Plug designed, engineered and manufactured liquefaction system is for the first phase of Nikola's Arizona hydrogen hub, with a potential to scale up to 150 TPD.
As part of Plug Power's (PLUG) commitment to advancing the decarbonization of energy, up to 75 Nikola Tre fuel cell electric vehicle will be purchased over the next three years to bring green hydrogen to Plug customers in North America, with the first trucks being delivered in 2023. The initiative is noted to underscore Plug’s commitment to decarbonize the hydrogen ecosystem by driving down Plug’s current scope 1 emissions by as much as 50%, while decarbonizing the hydrogen supply chain for its customers. The acquired FCEVs will be paired with Plug’s liquid hydrogen tankers.
Shares of Nikola (NKLA) rose 1.85% in premarket trading on Thursday, while Plug Power (PLUG) fell back 1.16%.