Commercial electric vehicle maker Nikola Corp. announced a partnership with KeyState Natural Gas Synthesis to create the first low-carbon hydrogen production supply chain in the state of Pennsylvania.
Nikola is working on a definitive agreement with hydrogen producers to expand Nikola’s supply of FCEVs.
The KeyState site covering more than 7,000 hectares is targeted for operation by 2026 and will also supply ammonia and urea to the industrial and transportation markets.
Nikola is known to build Tre FCEV trucks with a range of up to 500 miles and a refueling time of under 20 minutes. With this capability, it is possible for Tre FCEV trucks to transport goods over longer distances.
KeyState plans to supply Nikola with up to 100 tonnes per day of low-carbon hydrogen, which could fuel up to 2,500 Nikola Tre FCEVs. That amount of hydrogen could substitute for the more than 51 million gallons of diesel fuel consumed per year, Nikola said.
Low-carbon hydrogen will help Nikola maximize value under the recently passed Inflation Reduction Act. Hydrogen-producing companies will also receive up to $3 per kilogram of fuel for the first five years.
Nikola said in early October that the IRA would help reduce costs across his energy and electric truck business.
KeyState Natural Gas Synthesis is a joint venture between KeyState Energy and Frontier Natural Resources Inc.
