The hydrogen fuel cell truck maker Nikola (NASDAQ: NKLA) and energy giant TC Energy Corporation are evaluating plans for a hydrogen production hub to be located on 140 acres in Crossfield, Alberta, Canada.
That is where TC Energy operates a natural gas storage facility where the companies plan to produce hydrogen from the natural gas in a chemical plant for the future hydrogen-fueled trucks fleet of Nikola.
Carbon capture technology will also be installed to take away the CO2 emissions and store them permanently for lower-emissions hydrogen production.
TC Energy expects a final investment decision for the project by the end of 2023 and it will be subject to customary regulatory approvals.
“With our focus on creating low-carbon solutions for businesses, we’ve identified our Crossfield site as a hub to produce and distribute hydrogen to serve long-haul transportation, power generation, large industrials and heating customers across the United States and Canada,” said Corey Hessen, Executive Vice President of TC Energy.
The hydrogen hub is also expected to produce around 60 tons of hydrogen per day, with the capacity to expand to 150 tons per day.
Back in October 2021, the two companies announced signing a joint agreement for the co-development of large-scale clean hydrogen hubs across the US and Canada.
The announcement this week is an extension of their plans to provide the critical hydrogen infrastructure for Nikola’s future hydrogen-fueled zero-emission heavy-duty trucks.
“By leveraging our natural gas and power operations footprint, we see this new partnership as an important first step in facilitating access to affordable low-carbon production of hydrogen for the transportation and industrial sector,” said Mr. Hessen back in October.
Nikola stock showed no reaction to the news. It has been trading on the downside this week following an all-around mixed trading session for the stock market and high volatility due to economic instability.
Overall, the stock jumped around 40% in March as the company announced meeting its electric truck delivery deadlines. In April, it lost most of these gains so far continuing its previous trajectory of mixed performance and high risk.