Nel ASA (Nel, OSE: NEL) has been awarded a contract for delivery of 448 electrolysers and associated fueling equipment to Nikola Motor Company (Nikola) as part of Nikola's development of a hydrogen station infrastructure in the US for truck and passenger vehicles. Under the multi-billion NOK contract, to be deployed from 2020, Nel will deliver up to 1 GW of electrolysis plus fueling equipment.

"We are proud to announce this 1 GW electrolyser contract with Nikola. The multi-billion NOK contract is the largest electrolyser and fueling station contract ever awarded. It will secure fast and cost efficient fueling of Nikola's fleet of hydrogen trucks, as well as a growing fleet of Fuel Cell Electric Vehicles. We look forward to working with Nikola on developing the world's largest, most efficient network of low-cost hydrogen production and fueling sites," says Jon André Løkke, Chief Executive Officer of Nel.

"The future for zero-emission trucks has never been brighter. Nel's electrolysers are efficient and reliable, making them a natural backbone for our station infrastructure. Each station will produce 700 bar and will be compatible with class 8 trucks and consumer cars. This is an incredibly exciting time and we have now contractually set in motion the largest network of hydrogen in the world," says Trevor Milton, Chief Executive Officer of Nikola.

Under the contract, Nel will deliver 448 electrolysers and supporting fueling equipment to Nikola, starting in 2020. The contract includes a pre-engineering package of around USD 1.5 million, where Nel will develop a station design, including electrolysers, specifically made for fast fueling of Nikola trucks. Nikola has already placed an initial order amounting to more than USD 9 million for two demo-stations for which delivery will commence towards the end of 2018.

In May, Nikola announced that Anheuser-Busch has placed an order for up to 800 Hydrogen-Electric Powered Semi-Trucks. To support the Anheuser-Busch fleet of trucks, Nikola and Nel will need to deploy around 28 stations with a revenue potential for Nel of more than USD 500 million.

Nel ASA | nelhydrogen.com