Truck manufacturer Nikola (NASDAQ: NKLA) said late Tuesday that they have concluded a contract to obtain affordable electricity needed to extract hydrogen for the company ‘s planned fuel network.
The company said it has obtained a rate hike with Arizona Public Service, a unit of a utility property company The capital of West Pinnacle (NYSE: PNW), that Nikola says “enables the accelerated development of hydrogen – based fuel solutions for the transportation industry.”
A pair of Nikola Two trucks. Image source: Nikola.
Nikola went public last year amid much fanfare with a plan to build electric-powertrain trucks, with an ultimate focus on fuel cells. The company plans to maintain and maintain the cost of hydrogen fuel in lease contracts for its trucks, and is looking to build a network of 700 petrol stations across North America.
The company had initially spoken to partners BP to find the energy needed to find hydrogen, but those talks broke down in September after a short seller raised questions about Nikola ‘s business prospects. The founder and former chairman of Trevor Milton left Nikola in September, and the management has been scrambling to rebuild the business plan in the months since.
CEO Mark Russell had hoped to announce a hydrogen infrastructure partner before the end of the year, but warned that the news could slip into January. Media reports in December linked Nikola to the Arizona Public Service, but any deal between the two was subject to the agreement of Arizona governors.
In a statement issued Tuesday, Russell said, “The approval of this particular level for hydrogen production is critical to advancing zero emissions transportation and building a hydrogen economy.”
Nikola still has a long way to go, but investors can at least sigh with relief now that this important partnership has come to an end.