Nikola awards multi-billion NOK electrolyzer and fuelling station contract

Nel ASA has been awarded a contract for delivery of 448 electrolyzers and associated fuelling equipment to Nikola Motor Company (Nikola) as part of Nikola’s development of a hydrogen station infrastructure in the U.S. for truck and passenger vehicles. Under the multi-billion NOK contract, to be deployed from 2020, Nel will deliver up to 1 GW of electrolysis plus fuelling equipment. The company reiterates a potential major expansion of the production capacity at Notodden to accommodate the contract order.

“We are immensely proud of announcing this 1 GW electrolyzer contract with Nikola for the exclusive delivery of 448 electrolyzers and supporting fuelling equipment as part of their groundbreaking development of a hydrogen station infrastructure across the U.S. The multi-billion NOK contract is by far the largest electrolyzer and fuelling station contract ever awarded. It will secure fast and cost efficient fuelling of Nikola’s fleet of hydrogen trucks, delivering support to major customers like Anheuser-Busch, as well as a growing fleet of Fuel Cell Electric Vehicles. We look forward to working with Nikola on developing the world’s largest, most efficient network of low-cost hydrogen production and fuelling sites,” says Jon André Løkke, Chief Executive Officer of Nel.

Nikola and Nel announced late 2017 an exclusive partnership aimed at developing low-cost, renewable hydrogen production and fuelling sites as part of a nationwide network of hydrogen stations, supporting Nikola’s vision of replacing the current fleet of diesel trucks in America with zero-emission hydrogen trucks.

“The future for zero-emission trucks has never been brighter. Nel’s electrolyzers are efficient and reliable, making them a natural backbone for our station infrastructure. We’ll begin fleet testing the Nikola hydrogen electric semi-trucks in 2019. The first two stations will be installed in Arizona and California depending on permit timelines. The next 28 stations will be installed on each route outside of Anheuser-Busch’s Breweries or their distribution centres. Each station will produce 700 bar and will be compatible with class 8 trucks and consumer cars. This is an incredibly exciting time and we have now contractually set in motion the largest network of hydrogen in the world,” said Trevor Milton, Chief Executive Officer of Nikola.

Under the contract, Nel will deliver 448 electrolyzers and supporting fuelling equipment to Nikola, the rollout is expected to start in 2020. The contract includes an initial order for a pre-engineering package of around $1.5m, where Nel will develop a station design, including electrolyzers, specifically made for fast fuelling of Nikola trucks. Nel will continue to work, in collaboration with Nikola, to finalise the detailed station design and other technology elements to be deployed for the commercial stations.

Nikola has already placed an initial order amounting to more than $9m for two demo-stations for which delivery will commence towards the end of 2018.

Early in May, Nikola announced that Anheuser-Busch has placed an order for up to 800 Hydrogen-Electric Powered Semi-Trucks.

For more information, visit: www.nikolamotor.com

2nd July 2018