Nikola Invests in Wabash Valley Resources for Hydrogen
Global leader in zero-emissions transportation and infrastructure solutions Nikola Corporation and Wabash Valley Resources LLC announced that Nikola is investing USD 50 million in cash and stock in exchange for a 20% equity interest in the clean hydrogen project being developed in West Terre Haute, Ind. The project plans to use solid waste byproducts such as petroleum coke combined with biomass to produce clean, sustainable hydrogen for transportation fuel and base-load electricity generation while capturing CO2 emissions for permanent underground sequestration. Once completed, the project is expected to be one of the largest carbon capture and clean hydrogen production projects in the United States. The focus is to produce zero-carbon intensity hydrogen with the potential to develop negative carbon intensity hydrogen in the future.
Working together, Nikola and WVR expect to lead in the transition to clean transportation fuels for trucking operations within the Midwest, one of the most intensive commercial transportation corridors in the United States.
This investment is anticipated to give Nikola a significant hydrogen hub with the ability to offtake approximately 50 tons a day to supply its future dispensing stations within an approximate 300-mile radius, covering a significant portion of the Midwest. Exercising its offtake right will likely require significant additional investment by Nikola to build liquefaction, storage, and transportation services.
As part of this investment in the hydrogen economy in the Midwest, Nikola intends to build stations across Indiana and the broader Midwest to serve the region.
The first Nikola Tre hydrogen fuel-cell prototype builds have begun in Arizona and Ulm, Germany, with testing and validation of the vehicles planned into 2022, and serial production expected to commence in 2023.