FORTESCUE FUTURE INDUSTRIES (FFI) AND NIKOLA TO COLLABORATE AND INVEST IN THE CO-DEVELOPMENT OF LARGE-SCALE U.S. GREEN HYDROGEN PRODUCTION PROJECTS

Rhea-AI Summary

Nikola Corporation (NASDAQ:NKLA) has signed a memorandum of understanding (MOU) with Fortescue Future Industries (FFI) to explore large-scale green hydrogen production in the U.S. This partnership leverages Nikola's need for green hydrogen to decarbonize the transportation sector and FFI's expertise in hydrogen project development. The MOU outlines an evaluation of hydrogen offtake opportunities from FFI's projects and potential co-development of new production facilities. Nikola's President highlighted this collaboration as a strategic move in energy transition, while FFI's CEO noted North America's potential for becoming a leader in green energy.

Positive

• Partnership with Fortescue Future Industries could enhance Nikola's hydrogen production capabilities.
• Focus on decarbonization aligns with industry trends and potential governmental incentives.

Negative

• None.

PHOENIX, Jan. 24, 2023 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, and Fortescue Future Industries (FFI) have executed a memorandum of understanding (MOU) to collaborate on and evaluate the co-development of large-scale U.S. green hydrogen production facilities.

Supply of green hydrogen for any potential projects will be underpinned by Nikola as a potential offtaker, which has a large demand for green hydrogen in order to decarbonize the transportation sector and other industries. 

FFI's significant experience and capabilities in hydrogen project development make it an ideal partner for Nikola in the potential development of this project. It is a global green energy company pursuing opportunities in more than 25 countries and a subsidiary of top ten ASX company Fortescue Metals Group Ltd (ASX: FMG). FFI is leading the green industrial revolution by acquiring and developing technology solutions for hard-to-decarbonize industries, while building a global portfolio of renewable energy, green hydrogen and green ammonia projects.

Under the terms of the MOU, Nikola will evaluate green hydrogen offtake opportunities from any other green hydrogen projects being pursued by FFI. The parties will also evaluate the potential co-development of new green hydrogen production and associated infrastructure projects.

"FFI has an ambitious decarbonization strategy and associated investment allocated to lead the decarbonization efforts for one of the biggest resources companies in the world," said Nikola Corporation President and CEO, Michael Lohscheller. "This MOU will establish the framework for future collaborations as strategic partners for the potential co-development of meaningful energy transition solutions, with a focus on the Phoenix Hydrogen Hub project being led by Nikola today."

FFI CEO Mark Hutchinson said: "North America has the potential to become the world's leading green energy heartland. This new partnership demonstrates FFI's commitment to help decarbonize the transportation sector and enable the world to work towards achieving zero emissions. The incentives in the Inflation Reduction Act also make the US one of the best places in the world to invest in green energy and create a pipeline of new jobs."

ABOUT NIKOLA CORPORATION:­
Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.

ABOUT FORTESCUE METALS GROUP AND FFI:
Established in 2003, Fortescue Metals Group (Fortescue) is a global leader in the iron ore industry. As one of the world's lowest cost iron ore producers, Fortescue is now shipping at an annual rate of over 180 million tonnes with more than 1.7 billion tonnes of iron ore delivered to its customers since 2008. Through our green energy and technology company, Fortescue Future Industries (FFI), we are rapidly diversifying our business to become an integrated, global green energy and resources company. Key to this transition are our industry leading targets to achieve carbon neutrality for Scope 1 and 2 emissions by 2030 and net zero Scope 3 emissions by 2040. FFI is leading the global effort to help decarbonise hard-to-abate sectors and is developing and acquiring the technology and energy supply to help decarbonise Fortescue's business, while building a global portfolio of renewable green hydrogen and green ammonia projects. fortescue.com 

FORWARD LOOKING STATEMENTS
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the company's expected benefits from the MOU and LOI with FFI; expectations regarding its business, business model and strategy; the company's expectations regarding its projected truck builds and related specifications; the company's expectations for its trucks and market acceptance of electric trucks; and market opportunity. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Nikola's management and are not predictions of actual performance, including the parties' ability to negotiate definitive and binding documentation. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal proceedings to which Nikola is, or may become a party; failure to realize the anticipated benefits of the recently completed business combination; the conversion of pre-orders into binding orders; risks related to the rollout of Nikola's business and the timing of expected business milestones; the effects of competition on Nikola's future business; the availability of capital; and the other risks detailed from time to time in Nikola's reports filed with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended September 30, 2022 and other documents Nikola files with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and Nikola specifically disclaims any obligation to update these forward-looking statements.

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SOURCE Nikola Corporation

FAQ

What is the MOU between Nikola and Fortescue Future Industries about?

The MOU focuses on the co-development of large-scale U.S. green hydrogen production facilities.

How will Nikola benefit from the hydrogen supply agreement with FFI?

Nikola aims to secure green hydrogen to meet demand for decarbonizing its transportation solutions.

What role does Fortescue Future Industries play in this partnership?

FFI brings significant experience in hydrogen project development to support Nikola's green energy initiatives.

When was the MOU between Nikola and FFI executed?

The MOU was executed on January 24, 2023.

What is the stock symbol for Nikola Corporation?

Nikola Corporation trades under the stock symbol NKLA on NASDAQ.

What potential projects are Nikola and FFI exploring?

They are evaluating the development of green hydrogen production facilities and associated infrastructure.