Nikola Corporation, a designer and manufacturer of heavy-duty commercial battery-electric vehicles and fuel cell electric vehicles, has been granted a total of $58.2 million from various regulatory agencies to build a series of hydrogen refueling stations for heavy-duty trucks. The largest grant, $41.9 million, is from the California Transportation Commission, in collaboration with the California Department of Transportation.
Nikola recently began serial production of its hydrogen fuel cell electric truck and has received orders for over 200 of these trucks from 18 customers. The company plans to start delivering the trucks in September. To support the deployment of hydrogen fuel cell electric trucks, Nikola aims to build an integrated, hydrogen ecosystem and create a scalable energy business.
Earlier this year, Nikola launched Hyla, a subsidiary that plans to generate 30 metric tons of hydrogen per day at its Phoenix, Arizona hydrogen hub, with plans to expand to 150 metric tons in subsequent stages. Construction of the hub’s first phase is expected to be completed in the second half of 2024.
In addition to the grant from the California Transportation Commission, Nikola received funding from other sources, including $3.3 million from the California Energy Commission, $1.6 million from the Mobile Source Air Pollution Reduction Review Committee, $7 million from the Sacramento Metropolitan Air Quality Management District, and $4.4 million from the South Coast Air Quality Management District.
To facilitate the development of heavy-duty hydrogen refueling networks, regulators can implement voucher-style programs to reduce upfront costs for end users and provide federal funding in the form of grants to states.
As of this year, there are 59 retail hydrogen fueling stations in the U.S., mostly concentrated in California. However, only a small number of these stations are capable of supporting heavy-duty hydrogen vehicles. As the number of these vehicles on the roads increases, there will be a need for larger refueling stations.
Nikola has partnered with infrastructure company Voltera to develop up to 50 hydrogen stations in North America over the next five years. Work has already begun on eight initial stations, with the first one in Ontario, California scheduled to begin operating by the end of this year.
The expansion of hydrogen production and distribution for these stations can improve efficiency and lower fuel costs per kilogram, benefiting both heavy- and light-duty customers, according to the U.S. Department of Energy’s Alternative Fuels Data Center.