EV - Nikola Stock Soared With the Signing of a Significant Hydrogen Supply and Car Purchase Deal

Nikola ( NASDAQ:NKLA )

Nikola (NASDAQ: NKLA) and Plug Power (NASDAQ: PLUG) announced that they had engaged in a strategic cooperation to advance the hydrogen economy.

The supply deal for environmentally friendly hydrogen will get underway on January 1st. As Plug Power’s (PLUG) hydrogen production network continues to come online, the company will increase its supply of environmentally friendly hydrogen to Nikola (NKLA) to 125 tons per day. The deal forecasts a volume of 125 TPD by the end of 2026, with 80% of that volume being covered by a take-or-pay contract.

Plug Power stock has been given a contract by Nikola stock to produce one hydrogen liquefaction machine with a capacity of 30 TPD for Nikola’s newly announced hydrogen hub in Arizona. The liquefaction system for Nikola’s Arizona hydrogen hub, which was conceived, constructed, and produced by Plug, will be used in the project’s first phase and can grow up to 150 TPD.

Up to 75 Nikola Tre fuel cell electric vehicles will be purchased over the next three years to deliver green hydrogen to Plug customers in North America. This purchase is being made as part of Plug Power’s (PLUG) commitment to advancing the decarbonization of the energy sector. The first trucks are scheduled to be delivered in 2023. It is highlighted that the effort highlights Plug’s commitment to decarbonizing the hydrogen ecosystem by reducing Plug’s existing scope 1 emissions by as much as fifty percent while also decarbonizing the hydrogen supply chain for its customers. The Plug FCEVs bought will work with the company’s liquid hydrogen tankers.

During the pre-market trading session on Thursday, Nikola stock increased by 1.85%, while Plug Power’s stock declined by 1.16%.

Featured Image – Pexels © Mike B

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