NIKOLA AND E.ON ANNOUNCE PLANS TO ACHIEVE CO2 SAVINGS OF 560,000 METRIC-TONS ANNUALLY BY 2027

Rhea-AI Summary

Nikola Corporation and E.ON have partnered to enhance the sales and infrastructure of hydrogen fuel cell trucks in Europe. The initiative aims to supply hydrogen for up to 5,000 Nikola Tre FCEVs by 2027, facilitating an estimated annual CO₂ savings of 560,000 metric tons. The collaboration seeks to provide an integrated mobility solution that spans from hydrogen production to the fueling infrastructure, thereby supporting the decarbonization of heavy-duty transport.

Positive

• Partnership with E.ON to supply hydrogen for up to 5,000 FCEVs by 2027.
• Projected annual CO₂ savings of 560,000 metric tons by 2027.
• Establishment of a first-of-its-kind integrated mobility solution combining hydrogen supply and fueling infrastructure.

Negative

• Dependence on successful implementation of the hydrogen infrastructure.
• Uncertainty around converting pre-orders into binding orders.

• Nikola and E.ON partner to combine sales of Nikola hydrogen fuel cell trucks with services and hydrogen fueling infrastructure solutions
• Hydrogen will be supplied to operate up to 5,000 Nikola hydrogen fuel cell electric vehicles in Europe by 2027, further accelerating the following years
• Annual CO₂ savings are expected to be around 560,000 metric-tons by 2027, further increasing the following years

ESSEN, Germany, Dec. 21, 2022 /PRNewswire/ -- Nikola Energy and E.ON Hydrogen, confirmed their goal of making hydrogen fuel cell electric vehicles (FCEVs) cost competitive to diesel trucks, in terms of total cost of ownership. This is an important step on the road to decarbonizing heavy-duty transport. Nikola Energy is a wholly-owned subsidiary of Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emission transportation and energy infrastructure solutions. E.ON Hydrogen is a wholly-owned subsidiary of E.ON SE, one of Europe's largest operators of energy networks and energy infrastructure and a provider of innovative customer solutions. 

Combining their expertise in energy, infrastructure and transportation, Nikola and E.ON will offer customers a first-of-its-kind integrated mobility solution. The envisaged joint venture will cover the entire value chain of the hydrogen industry from the supply of green hydrogen to the establishment of a demand-driven fueling infrastructure, to the provision of FCEVs.

By 2027 and progressing thereafter, the partnership plans to supply green hydrogen to power up to 5,000 hydrogen-powered Nikola Tre FCEV cabovers with a range of up to 800 km. As a result, up to 560,000 metric-tons of CO₂ is expected to be saved annually by 2027, further increasing the following years, making an important contribution to the EU's sustainability goals.

Michael Lohscheller, President and CEO Nikola Corporation, said, "In everything we do, we look at the needs of our customers, who continue to be impressed by the innovative technology found in our industry-leading zero-emission Nikola Tre trucks. To ensure the hydrogen infrastructure is in place to support our customers, we are working with our partner E.ON on cost-efficient and sustainable road transport solutions. Significant interest in our bundled lease program consisting of the Nikola Tre FCEV, hydrogen fuel and maintenance is a game changer for the industry and is an added benefit as it simplifies and lowers the total cost of ownership for fleet and truck owners."

Patrick Lammers, COO Customer Solutions E.ON SE, said: "Our customers want affordable,  integrated and, most important, green mobility solutions. As early as 2027, we could potentially replace over 200 million liters of diesel with hydrogen and significantly reduce CO₂ emissions – and this is just the beginning. Together with Nikola we will create the first commercially viable market for hydrogen fuel cell technology in Europe."

Nikola Corporation and E.ON announced their partnership in September this year with the intent to combine Nikola´s innovative technology solutions in the transportation industry with E.ON's expertise in energy networks and customer solutions. The joint venture for hydrogen logistics services will start operating beginning of 2023.

About Nikola Corporation
Nikola Corporation is transforming the transportation industry worldwide. As a developer and manufacturer of zero-emission battery and hydrogen electric vehicles, electric vehicle powertrains, vehicle components, energy storage systems and hydrogen fueling infrastructure, Nikola is committed to revolutionizing the economic and environmental impact of global commerce as we know it today. Nikola Corporation was founded in 2015 and is headquartered in Phoenix, Arizona.

In Europe, Nikola manufactures together with its joint venture partner IVECO, the commercial vehicle brand of Iveco Group, the Nikola Tre battery-electric vehicle (BEV), with up to 530 km, and the Nikola Tre hydrogen FCEV, with up 800 km, in Ulm, Germany. Nikola and IVECO began taking orders on the European Nikola Tre BEV at the IAA Transportation 2022.

For more information, please visit www.nikolamotor.com or Twitter @nikolamotor.

About E.ON
E.ON is an international investor-owned energy company, which focuses on energy networks and customer solutions. As one of Europe's largest energy companies, E.ON plays a leading role in shaping a clean, digital, decentralized world of energy. To this end, around 72,000 employees develop and sell products and solutions for private, commercial and industrial customers. More than 51 million customers purchase electricity, gas, digital products or solutions for electric mobility, energy efficiency and climate protection from E.ON. E.ON is headquartered in Essen, Germany. For more information, please visit www.eon.com. 

NIKOLA 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 expectations related to its expressed partnership with E.ON; the ability to meet the planned emission reduction goals; the joint venture's ability to service and implement the entire value chain of the hydrogen industry; the joint venture's ability to supply green hydrogen to power up to 5,000 FCEVs; the company's expectations regarding its business, business model and strategy; the company's expectations regarding its planned energy infrastructure buildout, including hydrogen production hubs and dispensing stations; the company's truck builds and related specifications; the company's expectations for its trucks and market acceptance of battery electric and fuel cell 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. 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 completed business combination with VectoIQ; failure to reach final documentation of the anticipated transaction; 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.

E.ON FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments.

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SOURCE Nikola Corporation

FAQ

What is the partnership between Nikola and E.ON about?

Nikola and E.ON are collaborating to supply hydrogen for fuel cell electric vehicles and establish the necessary fueling infrastructure in Europe.

How many FCEVs will the partnership support?

The partnership aims to supply hydrogen for up to 5,000 Nikola Tre fuel cell electric vehicles by 2027.

What are the expected CO2 savings from this initiative?

The partnership is projected to result in annual CO2 savings of approximately 560,000 metric tons by 2027.

When will the joint venture between Nikola and E.ON start operating?

The joint venture for hydrogen logistics services is set to begin operating at the start of 2023.

How does the partnership affect Nikola's market position?

This partnership positions Nikola as a leader in the hydrogen fuel cell technology market in Europe, aiming to offer cost-competitive solutions to diesel trucks.