Nikola Corporation (Nasdaq: NKLA) – a global leader in hydrogen-powered trucks, and TC Energy Corporation (TSX, NYSE: TRP) – a leading North American energy infrastructure company, have signed a joint agreement to work together on co-developing, constructing, operating and owning large-scale hydrogen production facilities (hubs) in the US and Canada. Nikola stock forecast got a boost by the news.
In the world of clean vehicle technologies, lack of built-up infrastructure is one of the biggest challenges standing in the way of mass adoption. The two companies are collaborating to overcome this issue and move forward with achieving their corporate objectives.
Nikola – A Hydrogen Production Company
The development of hydrogen production hubs and the establishment of the hydrogen infrastructure required for delivering the fuel to customers is critical for both companies. They will start with hydrogen hubs producing 150 tons or more of hydrogen per day near highly traveled truck corridors. The hubs will serve Nikola’s planned expansion with its Class 8 FCEVs over the next five years.
TC Energy will contribute with its significant pipeline, storage and power assets that could potentially lower the cost and increase the speed of delivery of these hydrogen production hubs. This may include delivering CO2 to the hydrogen production sites for decarbonization of the process or exploring the integration of midstream assets to enable hydrogen distribution and storage via pipeline.
“This collaboration with TC Energy is intended to enable the production of hydrogen at quantities and costs that are required to support customer adoption and use of FCEVs. TC Energy also offers pipeline distribution capabilities that will be essential for cost-efficient movement of hydrogen in the future,” said Nikola President, Energy and Commercial Pablo Koziner.
There is no information on how many hydrogen production hubs will be built under the agreement or when production will commence but the companies do have a stated goal of achieving net-zero CO2 emissions over time.
Nikola stock jumped around 7.8% to reach $11 on the news of the exciting growth opportunity uplifting Nikola stock forecast. The company is not just in the race to deliver hydrogen-powered trucks but also to expand the necessary infrastructure so that those vehicles can operate. There are still a lot of challenges ahead for Nikola but investors with a high-risk threshold can certainly look into this stock and take advantage of current lows.