PHOENIX HYDROGEN HUB LLC PROJECT INVITED INTO PHASE II OF U.S. DEPARTMENT OF ENERGY $1.3 BILLION LOAN APPLICATION PROCESS

Rhea-AI Summary

Nikola Corporation (NKLA) announced its Phoenix Hydrogen Hub LLC project has progressed to Part II of the Department of Energy's loan application process, originally submitted on May 26, 2022. The loan could reach $1.3 billion for a facility producing up to 150 metric-tons of hydrogen daily. The hub will support Nikola's zero-emission trucks and expand based on regional demand. Phase one construction is expected to complete in 2024. Nikola aims to offer renewable energy solutions and contribute to a decarbonized transportation sector.

Positive

• Progression to Part II of the DOE loan application indicates strong governmental backing.
• Potential loan guarantee of up to $1.3 billion could significantly boost capital for operations.
• Project aligns with Nikola's strategy to expand zero-emission vehicle infrastructure.

Negative

• The loan approval process is contingent on DOE's review, introducing uncertainty.
• The timeline for financial benefits remains unclear until regulatory approvals are finalized.

PHOENIX, Dec. 1, 2022 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, today announced that the Department of Energy Loan Program Office (LPO) has invited its Phoenix Hydrogen Hub LLC project loan application into Part II of its application process. The project loan application was submitted on May 26, 2022 and has now progressed through the Part I review.

The application for a loan guarantee under the Innovative Clean Energy projects solicitation could amount to up to $1.3 billion for a renewable electrolytic hydrogen production facility that could produce up to 150 metric-tons of hydrogen per day. The application process is wholly dependent on the results of the Department of Energy (DOE) review and evaluation of a Part II Application, and DOE's determination whether to proceed.

The Phoenix Hydrogen Hub LLC owns 920 acres of undeveloped land in Maricopa County, Ariz.  where the facility is planned to be sited to support the deployment of Nikola's heavy duty, zero-emission fuel cell electric vehicles (FCEVs) and hydrogen refueling stations in California and the U.S. Southwest. The hub is expected to be built in phases to scale with the demand created from Nikola's zero-emission trucks, starting with 30 metric-tons, and expanding up to 150 metric-tons of hydrogen per day, with expansion potential as the demand for clean hydrogen in the region expands. Construction of the first phase is anticipated to be completed in 2024, once final investment decisions and customary regulatory approvals are finalized.

"This hub is intended to provide urgently needed renewable-based energy solutions and a pathway to a decarbonized transportation sector," said Nikola President, Energy, Carey Mendes. "What's more, it is expected to support clean hydrogen use in additional applications such as industrial, residential, and commercial heating, as well as for decarbonizing natural gas and power generation." 

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.

FORWARD LOOKING STATEMENTS
Certain statements included in this press release that are not historical facts are forward-looking statements. 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 anticipated benefits of the DOE's loan program or the expected benefits related to the planned Phoenix Hydrogen Hub development to Nikola's business. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Nikola's management. We cannot assure you that forward-looking statements will be achieved, and forward-looking statements are not predictions of actual performance. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to, the failure to realize the anticipated benefits of the DOE's loan program or the development of the Phoenix Hydrogen Hub; design and manufacturing changes, challenges and delays; economic, financial, legal, supply chain, regulatory, political and business conditions and changes in domestic and foreign markets; the potential challenges arising from COVID-19; the outcome of legal, regulatory and judicial proceedings to which Nikola is, or may become a party; demand for and customer acceptance of Nikola's trucks; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the rollout of Nikola's business and the timing of expected business milestones, including delivery of trucks for sale; the effects of competition on Nikola's future business; the availability of capital; risks associated with changes in accounting treatment or accounting standards; 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.

DEPARTMENT OF ENERGY DISCLAIMER
The DOE's invitation to submit a Part II application is not an assurance that DOE will invite the applicant into the due diligence and term sheet negotiation process, that DOE will offer a term sheet to the applicant, or that the terms and conditions of a term sheet will be consistent with terms proposed by the applicant. The foregoing matters are wholly dependent on the results of DOE review and evaluation of a Part II Application, and DOE's determination whether to proceed. The application for a loan guarantee under the Innovative Clean Energy projects solicitation could amount to about $1.3 billion. The DOE has other program and funding opportunities it is actively pursuing and hopes to share more details on their progress soon.

MEDIA INQUIRIES

Nicole Rose
nicole.rose@nikolamotor.com
480-660-6893

Colleen Robar
crobar@robarpr.com
313-207-5960

 

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SOURCE Nikola Corporation

FAQ

What is Nikola Corporation's recent development related to the DOE?

Nikola Corporation's Phoenix Hydrogen Hub project has been invited to Part II of the DOE loan application process.

How much funding could Nikola receive from the DOE for its hydrogen project?

Nikola could receive up to $1.3 billion for the renewable hydrogen production facility.

When was the loan application for the Phoenix Hydrogen Hub submitted?

The application was submitted on May 26, 2022.

What are the expected outputs of the Phoenix Hydrogen Hub?

The hub is expected to produce up to 150 metric-tons of hydrogen per day.

What is the anticipated completion date for the first phase of the project?

Construction of the first phase is expected to be completed in 2024.