Nikola and Plug Power Partner to Accelerate Green Hydrogen Use for Transportation, Power Generation, and Industrial Applications

Nikola Corp. and Plug Power have formed a partnership to accelerate the use of green hydrogen for transportation, stationary power generation, and industrial applications. Plug Power will supply Nikola with up to 125 tons per day of green hydrogen and also sell it equipment to convert 30 tons of hydrogen gas per day into a liquified form at a hydrogen production facility in Arizona. Plug also plans to purchase 75 of Nikola’s hydrogen-powered trucks over the next three years that will be used to haul tankers loaded with the carbon-free fuel. The companies are hoping to benefit from incentives for hydrogen created by the Inflation Reduction Act signed into law this year by President Joe Biden. Hydrogen is seen as an efficient option for powering long-haul heavy trucks compared to battery-electric vehicles due to its ability to be refueled quickly and not needing large batteries.

The Benefits of Green Hydrogen Incentives

Green hydrogen is a clean, renewable energy source that can be used to help reduce carbon emissions and combat climate change. To encourage the use of green hydrogen, many countries have implemented incentives such as subsidies and tax credits. According to the International Renewable Energy Agency (IRENA), these incentives have resulted in a dramatic increase in green hydrogen production, with global capacity increasing from 1 GW in 2019 to 4 GW in 2020. Additionally, IRENA estimates that by 2030, green hydrogen could account for up to 18% of total global energy consumption. This would result in an estimated reduction of 830 million tons of CO2 emissions per year. With the right incentives and policies in place, green hydrogen could become a major player in the global energy market.
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Picture source: Appolinary Kalashnikova