Today’s unanimous approval of this agreement by the ACC provides Nikola with a competitive electricity tariff specifically designed for the production, processing and dispensing of hydrogen. This will support, among other things, the development of a zero-emission heavy-duty freight corridor along the I-10 freeway between Los Angeles and Phoenix.
|Nikola accelerates the hydrogen economy because of the price of electricity in Arizona|
APS ‘competitive electric rate will help lead the creation of the hydrogen economy in Arizona. Nikola estimates that under the rate structure it will be able to deliver hydrogen at market leading prices and within the ranges required for Nikola to offer competitive leasing rates for its truck customers.
The agreement reflects the value that results from the reduced flexibility that Nikola’s hydrogen production facilities are expected to provide to the power grid. These facilities will be configured to respond to the needs of the grid, for example by reducing Nikola’s power consumption from the power grid during heat waves. This agreement will encourage Nikola to deploy capital within the state, increase the electrical load related to hydrogen production, and develop and employ a highly skilled and well-educated workforce.
Nikola CEO Mark Russell celebrated today’s pivotal milestone by stating, “Nikola appreciates the joint efforts of APS and ACC to enable competitive electrolytic hydrogen production. The approval of this special rate for the production of hydrogen is fundamental to advance in the future of transport without emissions and build a hydrogen economy ”.
Nikola’s President of Energy and Commercial, Pablo Koziner, added: “Through this agreement, Nikola is assured of a reliable source of electricity with a competitive price that will allow us to begin the development of hydrogen production facilities to meet the needs of fuel from our truck customers. The agreement sets an important precedent by showing that innovative operational solutions for economical hydrogen production can be developed that maximize benefits for all stakeholders. “
The approval of this agreement marks an important milestone. Moving forward, Nikola will work with APS to finalize site selection and interconnection requirements to establish its first hydrogen production facility in Arizona.
“For decades, hydrogen has been a promising but elusive source of clean energy for both the transport and energy sectors. We just haven’t done enough to bring hydrogen into the mainstream, “said President Lea Márquez Peterson. “However, as we begin to enter a new energy economy, I want to make sure that we take all necessary steps to promote Arizona’s gradual and innovative move toward decarbonization. By supporting this app, we are doing exactly that. Let’s make our great state the national epicenter of hydrogen hydrogen production, processing and sourcing, and let Arizona serve as a model for other states on clean energy innovation. “
Thus, Nikola Corporation (NASDAQ: NKLA) has secured an innovative electric rate program with the Arizona Public Service Company (“APS”) that enables accelerated development of hydrogen-based fuel solutions for the transportation industry.