NIKOLA AND FIRSTELEMENT FUEL FORGE 10-YEAR STRATEGIC PARTNERSHIP TO ADVANCE HYDROGEN FUELING INFRASTRUCTURE

Rhea-AI Summary

FirstElement Fuel (FEF) named authorized Fueling Solutions Partner for Nikola Corporation (Nasdaq: NKLA) for hydrogen fuel cell electric trucks

Insights

Industry Analyst

The agreement between Nikola Corporation and FirstElement Fuel (FEF) signifies a pivotal development within the clean energy and transportation sectors. This partnership is poised to enhance the hydrogen fueling infrastructure, a critical component for the adoption of zero-emission vehicles, particularly in the heavy-duty truck segment. The establishment of a hydrogen refueling station with a fast-fill lane in Oakland, California, not only supports Nikola's truck launch strategy but also aligns with California's environmental initiatives to reduce carbon emissions, especially around high-traffic ports.

From an industry perspective, the collaboration could potentially lead to increased demand for Nikola's hydrogen fuel cell electric trucks, given the improved refueling infrastructure. The strategic placement near the port of Oakland is likely to attract businesses focused on reducing their carbon footprint, thus potentially increasing Nikola's market share in the zero-emissions transportation sector. However, the success of this venture hinges on the wider adoption of hydrogen fuel as a viable alternative to diesel, which is contingent on cost-competitiveness, reliability and the expansion of refueling infrastructure beyond the initial locations.

Financial Analyst

The financial implications of the partnership between Nikola and FEF are multifaceted. For Nikola, the agreement could lead to revenue growth through increased sales of its Class 8 hydrogen fuel cell electric trucks, driven by the availability of refueling infrastructure. The collaboration also represents a long-term investment in establishing a hydrogen economy, which could position Nikola as a frontrunner in this emerging market. For FEF, the deal may result in a steady stream of customers and revenue from the operation of the refueling station.

Investors should monitor the progression of infrastructure development and the adoption rate of Nikola's trucks to gauge the potential return on investment. While the news is positive, the actual impact on Nikola's bottom line will depend on the pace of infrastructure rollout, customer conversion rates and the competitive landscape of zero-emission transportation solutions. It's important to note that investments in green technology can be high-risk due to the nascent stage of the market and regulatory dependencies.

Sustainability Expert

The collaboration between Nikola and FEF underscores the growing trend of sustainability in the transportation industry, with an emphasis on reducing carbon emissions. The development of hydrogen fueling stations is a crucial step toward decarbonizing heavy-duty transportation, a significant contributor to greenhouse gas emissions. The fast-fill lane at the Oakland station represents an advancement in refueling technology, potentially reducing downtime for trucks and improving the efficiency of zero-emission fleets.

However, the sustainability impact of such initiatives extends beyond the technology itself. The production of hydrogen, the energy source for these fuel cell electric trucks, must also be considered. If produced using renewable energy, hydrogen can be a truly clean fuel. Otherwise, if produced from fossil fuels, the environmental benefits could be undermined. As such, the long-term success of Nikola and FEF's endeavors will also be influenced by the evolution of green hydrogen production methods and the broader energy transition.

FirstElement Fuel named authorized Fueling Solutions Partner for Nikola Class 8 hydrogen fuel cell electric trucks

PHOENIX, Dec. 20, 2023 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, and FirstElement Fuel (FEF), a world leader in hydrogen refueling station solutions, have formalized a definitive 10-year agreement to refuel Nikola's hydrogen fuel cell electric truck at FEF's hydrogen refueling station in Oakland, Calif. This collaboration unifies their commitment to driving the widespread adoption of hydrogen fuel cell electric vehicles and marks a significant step towards a greener and more sustainable tomorrow.

Under this strategic partnership, FEF is appointed as an authorized Nikola Fueling Solutions Partner. This collaboration enables Nikola customers to access fueling services at the new FEF multi-use heavy-duty truck station situated strategically near the port in Oakland, Calif. The station, which uses FEF's proprietary design, anticipates a fueling capacity of approximately 200 trucks per day, and will boast the world's first heavy-duty truck H70 fast-fill lane for efficient hydrogen refueling. The station received funding from the California Energy Commission under the NorCal Zero Project. This agreement aligns seamlessly with Nikola's initial truck launch strategy, concentrating on the deployment of its zero-emissions trucks in areas adjacent to Maritime Ports throughout Calif. and serves as the first of many partner stations to come.

"FirstElement Fuel is a recognized leader in hydrogen vehicle fueling in California, and the Nikola team is inspired by the immense possibilities created by this agreement," said Nikola President of Energy, Joe Cappello. "Our customers now have access to fuel at FEF's first heavy-duty site in Oakland, California. With additional stations planned, this signifies a powerful synergy between Nikola and FEF, driving us towards a shared vision of a future with cleaner and more sustainable solutions."

The Oakland station's fast-fill lane is a prime example of the synergies between Nikola's advanced truck technology as well as FEF's station capabilities and demonstrates Nikola's commitment to enabling the adoption of hydrogen fuel cell electric vehicles in Northern Calif. Nikola plans to utilize several paths to achieve a network of up to 60 stations in the coming years, including mobile and permanent HYLA branded stations, customer-owned stations, and new and established public truck stops via Nikola's fueling station partner network. Two fueling solutions locations are slated by the end of 2023 — one HYLA branded fueling station in Ontario, Calif. and the FEF Oakland location. Several additional fueling solutions locations are planned by the close of Q2 2024.

Nikola's broader strategy involves working with industry-leading partners to ensure a robust hydrogen supply chain, transport logistics, storage solutions, and dispensing locations. As Nikola previously announced, enough energy offtake has been secured to support customer operations through the beginning of 2024. The team is actively working to secure additional hydrogen offtake for future sales while continuing to develop the refueling ecosystem.

"This collaboration is a testament to our commitment to transform the transportation industry and we are proud to play a role in powering Nikola's innovative hydrogen fuel cell electric trucks," said Joel Ewanick, Founder and Executive Chairman of FEF. "We are confident the synergy between our shared expertise and vision will help to reshape the landscape of clean and sustainable transportation, driving towards a future powered by hydrogen."

California leads the charge in reducing carbon emissions, especially in high-traffic ports, with Nikola's Class 8 hydrogen fuel cell electric truck playing a crucial role in advancing these initiatives. This station and partnership underscore Nikola and FEF's commitment to meeting state and federal zero-emission goals. The deployment of refueling infrastructure is pivotal to the energy transition, and the strategic placement of the FEF station in Oakland marks a significant milestone in this joint mission.

FEF is in the process of installing a number of hydrogen refueling stations capable of fast-filling for Class 8 trucks. This strategic initiative with Nikola will enable an acceleration of FEF's commitment to building hydrogen infrastructure to serve transportation hubs in areas where clean solutions are imperative.

Nikola plans to develop a series of new hydrogen fueling locations under the brand name HYLA throughout Southern Calif. in the coming months followed by Northern Calif. to support the recent launch of the Nikola hydrogen fuel cell electric truck.  Supplementing these stations will be a network of hydrogen fueling solution partners that will create additional hydrogen fueling opportunities for Nikola customers. The combination of these hydrogen fueling options will help facilitate the adoption of hydrogen fuel cell electric trucks and the decarbonization of transportation.

ABOUT NIKOLA CORPORATION
Nikola Corporation's mission is clear: pioneering solutions for a zero-emissions world. As an integrated truck and energy company, Nikola is transforming transportation and over-the-road freight services. With our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, we are driving the advancement of the complete hydrogen refueling ecosystem. This encompasses supply, distribution, and dispensing, reflecting our commitment to sustainable practices and a cleaner future.

Nikola is based in Phoenix, Arizona with a manufacturing facility in Coolidge, Arizona. 

Experience our journey to achieve your sustainability goals at nikolamotor.com or engage with us on social media via Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany or Twitter @nikolamotor.

ABOUT FIRSTELEMENT FUEL
FirstElement Fuel Inc. (FEF or the "Company") is a California-based company established in 2013 to provide safe, reliable, retail hydrogen to customers of hydrogen-powered vehicles. The Company is the world leader in hydrogen refueling station solutions, with facilities in Irvine, Santa Ana, and Livermore, CA. FEF has 41 retail light-duty stations throughout California and is developing a network of stations to serve Heavy Duty Trucks powered by hydrogen, starting with the world's first high-flow refueling station in Oakland, CA as part of a joint project with the California Air Resources Board and the California Energy Commission.  Over the past 10 years since FEF's founding, the Company has partnered with public organizations including the California Energy Commission, the South Coast Air Quality Management District, the Bay Area Air Quality Management District, and the Sacramento Municipal Air Quality Management District which have also provided funding.  Private partnerships have included those with Mitsui & Co, Air Water Inc., Honda Motor Company, Toyota Motor Corporation, MUFG, the Japan Bank of International Cooperation, Nikisso Company, and Air Liquide., all of which have provided funds to FEF in pursuit of the vision of a zero-emissions transportation future.

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the "Company"), including statements relating to: the Company's beliefs regarding the benefits of the stated partnership between Nikola and FEF; the ability to scale and secure a position as a pioneer in the hydrogen refueling ecosystem; the anticipated widespread adoption of hydrogen fuel vehicles; whether this partnership is significant step towards a greener and more sustainable future; the ability of FEF's fueling technology to rapidly fill approximately 200 trucks a day; FCEV truck's ability to meet is range and fueling time targets;; the benefits of various government incentives in Calif.; the ability to meet the hydrogen fueling demands of Company customers; and the ability to realize the benefits of certain awards or partnerships to help create an network of commercial hydrogen refueling stations. These forward-looking statements generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the factors, risks and uncertainties regarding the Company's business described in the "Risk Factors" section of the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2023 filed with the SEC, in addition to the Company's subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause the Company's actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

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SOURCE Nikola Corporation

FAQ

What is the partnership between FirstElement Fuel and Nikola Corporation?

FirstElement Fuel and Nikola Corporation have formalized a definitive 10-year agreement to refuel Nikola's hydrogen fuel cell electric truck at FEF's hydrogen refueling station in Oakland, Calif.

What is the significance of the partnership?

The partnership signifies a commitment to driving the widespread adoption of hydrogen fuel cell electric vehicles and marks a significant step towards a greener and more sustainable tomorrow.

What is the anticipated fueling capacity of the FEF multi-use heavy-duty truck station?

The station anticipates a fueling capacity of approximately 200 trucks per day and will boast the world's first heavy-duty truck H70 fast-fill lane for efficient hydrogen refueling.

What is Nikola's initial truck launch strategy?

Nikola's initial truck launch strategy concentrates on the deployment of its zero-emissions trucks in areas adjacent to Maritime Ports throughout California.

What are Nikola's plans for fueling solutions locations in the coming years?

Nikola plans to achieve a network of up to 60 stations in the coming years, including mobile and permanent HYLA branded stations, customer-owned stations, and new and established public truck stops via Nikola's fueling station partner network.

What is the broader strategy of Nikola?

Nikola's broader strategy involves working with industry-leading partners to ensure a robust hydrogen supply chain, transport logistics, storage solutions, and dispensing locations.

What is the role of FEF in reshaping the landscape of clean and sustainable transportation?

FEF plays a role in powering Nikola's innovative hydrogen fuel cell electric trucks, reshaping the landscape of clean and sustainable transportation, driving towards a future powered by hydrogen.

What are the plans for hydrogen fueling locations under the brand name HYLA?

Nikola plans to develop a series of new hydrogen fueling locations under the brand name HYLA throughout Southern California in the coming months followed by Northern California to support the recent launch of the Nikola hydrogen fuel cell electric truck.