PHOENIX, October 31, 2022 /PRNewswire/ — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation, energy supply and infrastructure solutions, and KeyState Natural Gas Synthesis (“KeyState”), a production facility for hydrogen and clean chemicals under development, are working together to create Pennsylvania first low-carbon hydrogen production value chain, which includes the full integration of commercial carbon capture and storage. The project aims to represent the transition to low-emission transport, chemicals and manufacturing. The parties are working toward a definitive agreement to expand Nikola’s zero-emission fuel cell electric vehicle (FCEV) hydrogen supply.
“Nikola’s participation in the project will allow us to ensure sufficient volumes of hydrogen to support and accelerate the adoption of zero-emission trucks by unlocking new customer demand and enabling key investments in hydrogen fueling infrastructure. downstream in the Mid-Atlantic region,” said Nikola PresidentEnergy, Carey Mendes. “This will be key to our supply strategy and help grow our large-scale refueling network. Additionally, clean, low-carbon hydrogen will allow us to maximize value under the Reduction Act. inflation and future downstream incentive programs for fuel and distribution.”
KeyState plans to supply Nikola with up to 100 tons per day of low-carbon hydrogen, which can fuel up to 2,500 Nikola Tre FCEVs and will replace more than 51,000,000 gallons of fossil diesel fuel annually consumed .* Once operational in 2026, the 7,000+ acre KeyState site is expected to have the capacity to store CO2 associated with hydrogen production and will provide strategic reach and access to high-end mid-range markets. Atlantic FCEV. KeyState will also produce ammonia and urea for the industrial and transportation markets, in addition to Nikola’s hydrogen mobility demand.
The KeyState project is expected to integrate carbon capture from high-efficiency autothermal reforming with onsite geological carbon sequestration and a natural gas feedstock from an onsite closed system, while generating electricity without carbon. A veritable carbon circle will be completed, with the separation of 99% of the carbon from the hydrogen contained in the methane and the return of this CO2 to deep underground geological storage on site.
“KeyState has developed a replicable model for large-scale, low-carbon, low-cost hydrogen production,” said Perry Babb, CEO of project developer KeyState Energy. “This project will have multi-county, multi-generational and job-creating economic impact in a once booming region. Pennsylvania coal and rail region, demonstrating that unprecedented reductions in emissions and great long-term job creation are both possible.”
In addition to working on the hydrogen supply agreement, the parties are working together to develop a liquefaction solution to support the economical and efficient distribution of hydrogen from the project to the planned Nikola supply network under development. The parties also plan to support an application as a lead project of the DOE Hydrogen Hub program representing the full utilization hydrogen ecosystem, from production to demand.
*US Department of Energy. (2020, February). Average fuel consumption by major vehicle category https://afdc.energy.gov/data/10310
About Nikola Corporation
Nikola Corporation is transforming the transportation industry globally. As a designer and manufacturer of zero-emission hydrogen and battery electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems and hydrogen station infrastructure, Nikola is committed 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.
About KeyState Natural Gas Synthesis
Key State – Pennsylvania, KeyState Natural Gas Synthesis is a joint venture between KeyState Energy (project developer) and Frontier Natural Resources Inc. (natural gas and geological storage) in partnership with OGCI Climate Investments. KSNGS will produce low carbon hydrogen, automotive grade urea (DEF) and ammonia from natural gas while integrating carbon capture and storage into a closed carbon loop on its 7,000 acre site in northern Pennsylvania. KSNGS will create hundreds of long-term, high-value construction and jobs, hundreds of millions of dollars in annual local economic activity, and unleash new industry for rural Appalachia. (www.KeyState.net)
Certain statements included in this press release that are not historical facts are forward-looking statements. Forward-looking statements are generally accompanied by words such as “believe”, “may”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, ” should”, “should”, “plan”, “predict”, “potential”, “seem”, “seek”, “future”, “prospect” and similar expressions which predict or indicate future events or trends or which are not not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the anticipated benefits of the parties’ announced collaboration; the ability to secure hydrogen to support the adoption of zero-emission trucks; the ability to unlock new customer demand and enable investment in hydrogen fueling infrastructure in the Mid-Atlantic region; assistance in the development of the Nikola supply network; maximize the benefits of the IRA; the ability of the model to be reproducible for the production of hydrogen at lost cost; and the potential impact on the economy and job creation. These statements are based on various assumptions, identified 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 realized 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 anticipated collaboration between the parts ; design and manufacturing changes, difficulties and delays; economic, financial, legal, supply chain, regulatory, political and business conditions and changes in domestic and foreign markets; potential challenges arising from COVID-19; the outcome of legal, regulatory and judicial proceedings to which Nikola is or may become a party; customer demand and acceptance of Nikola trucks; risks associated with the development and testing of fuel cell modules and hydrogen storage systems; risks related to the deployment of Nikola’s business and the timing of expected business milestones, including the 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 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 June 30, 2022 and other documents that Nikola files with the SEC. If one of these risks materializes, or if 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.