NKLA - Nikola announce hydrogen supply deal with KeyState

Nikola ( NASDAQ: NKLA ) announced that it is working with KeyState Natural Gas Synthesis to create Pennsylvania's first low-carbon hydrogen production value chain.

KeyState Natural Gas Synthesis is a joint endeavor between KeyState Energy (Project Developer) and Frontier Natural Resources Inc. (Natural Gas & Geological Storage) in partnership with OGCI Climate Investments.

The initiative is expected to include full integration of commercial carbon capture and storage. In addition, the project is intended to represent the transition to lower emissions transportation, chemicals and manufacturing.

The parties are working towards a definitive agreement to expand the hydrogen supply for Nikola's ( NKLA ) zero-emissions heavy-duty fuel cell electric vehicles.

As part of the collaboration, KeyState plans to supply Nikola ( NKLA ) with up to 100 tones per day of low carbon hydrogen, which can supply fuel for up to 2,500 Nikola Tre FCEVs and will displace over 51M gallons of fossil diesel fuel per annum consumed. Once operational in 2026, the 7K plus-acre KeyState site is expected to have the capacity to store the CO2 associated with the hydrogen production and will provide strategic reach and access to premium Mid-Atlantic FCEV markets.

"Nikola's participation in the project will allow us to secure sufficient volumes of hydrogen to underpin and accelerate the adoption of zero-emission trucks by unlocking new customer demand and enabling key investments in downstream hydrogen refueling infrastructure in the Mid-Atlantic region," noted Nikola exec Carey Mendes.

The hydrogen sourcing arrangement is considered key to NKLA's overall supply strategy and anticipated to help develop a refueling network at scale.

Shares of Nikola ( NKLA ) trade flat in premarket action.

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