EV maker Nikola announced it is working with KeyState Natural Gas Synthesis, a joint venture between KeyState Energy and Frontier Natural Resources Inc., to develop Pennsylvania’s first low-carbon hydrogen production supply chain.
KeyState is using a 7,000-acre site for hydrogen production. The site will also supply ammonia and urea for industrial and transportation markets and is expected to be operational in 2026.
Nikola said it is working toward securing a definitive agreement with KeyState to expand hydrogen supply specifically for Nikola’s fuel-cell electric vehicles. Nikola is currently developing a hydrogen fuel cell electric semi-truck with a range of up to 500 miles and a refuel time of fewer than 20 minutes.
The EV maker said that KeyState plans to supply the company with up to 100 tonnes of low-carbon hydrogen per day – enough to supply fuel for up to 2,500 Nikola FCEVs (fuel-cell electric vehicles). According to Nikola, that amount of hydrogen could displace over 51 million gallons of diesel fuel consumed per year.
The venture will also allow the EV maker to take advantage of a tax credit of up to $3 per kilogram of fuel for the first five years under the Inflation Reduction Act. Earlier in October, Nikola said the Inflation Reduction Act would help the company reduce costs across its energy and electric truck business.
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