Nikola plans 60 hydrogen stations by 2026, aided by incentives

Nikola expects the Inflation Discount Act (IRA) to offer a giant increase to its efforts to determine a hydrogen community for its fuel-cell vans.

The corporate late final week stated it might construct 60 hydrogen fueling stations by 2026, because of decrease prices enabled by the IRA’s incentives, in addition to state-level incentives.

Some work is already underway, the corporate famous. Based on a press launch, Nikola has bought a land parcel in Buckeye County, Arizona, for a “hydrogen manufacturing hub” of the type that is confirmed controversial amongst environmental teams. Nikola additionally has a 20% stake in Wabash Valley Assets (WVR), a hydrogen producer Nikola intends to make use of to produce automobiles working within the Midwest. The corporate additionally introduced three California hydrogen station places in August.

The monetary image for these operations is beginning to look higher because of the IRA, Nikola emphasised. The corporate pointed to a number of tax credit within the laws, together with a Clear Hydrogen Manufacturing Tax Credit score that pays $3.00 per kilogram of hydrogen produced, an prolonged Carbon Sequestration Credit score it expects WVR to reap the benefits of, and extensions of the Funding Tax Credit for renewable power and hydrogen manufacturing.

Nikola additionally anticipates value financial savings by means of the IRA’s Various Gas Refueling Property Credit score, which the corporate says affords as much as $100,000 for every bit of hydrogen allotting tools.  California’s Low Carbon Gas Normal additionally contains credit for disbursed hydrogen, making it extra cost-competitive with diesel. Oregon has enacted an identical program, with Washington state set to launch one in 2024, Nikola famous.

Different incentives apply to automobile manufacturing and gross sales. Nikola believes its Coolidge, Arizona, manufacturing unit will qualify for grant funding underneath the $10 billion Superior Vitality Challenge Credit score program, plus $10 per kwh for producing battery modules (for each fuel-cell and battery-electric vans) underneath the Superior Manufacturing Manufacturing Credit score. And truck patrons might get a Business Clear Automobile Credit score of as much as $40,000, in response to Nikola.

The announcement comes shortly after Nikola founder Trevor Milton was discovered responsible of three of 4 counts of securities fraud. Milton, who resigned from the corporate in 2020, was charged after complaints of deceptive traders with what all the time appeared like a far-fetched marketing strategy encompassing not solely industrial vans, but additionally a pickup referred to as the Badger.

Nikola checked out gas cells and establishing hydrogen infrastructure as two of its strengths, nevertheless it did not exhibit both initially. But it was in a position to negotiate a possible cope with Common Motors to construct the Badger and provide fuel-cell tech. That deal rapidly fell aside, and Nikola shifted to a “base plan,” scrapping the Badger and turning to Bosch relatively than GM ultimately for fuel-cell elements.

Not too long ago it was revealed that the Badger fuel-cell pickup would have relied virtually fully on GM elements. And whereas the Badger is not a chance, it begs the query of whether or not such a product is perhaps extra compelling if a number of the fuel-cell community Nikola is describing right here takes kind?