Nikola Corp. may earn hundreds of millions of dollars a year from incentives under the Inflation Reduction Act of the Biden administration if it can put its hydrogen fuel cell trucks and filling station network into service.
One of the most important of them is a bonus of up to $3 for every kilogramme of hydrogen produced. If Nikola succeeds in creating 300,000 kg of hydrogen each day as planned, the federal government might pay the business nearly $1 million daily. For dispensing hydrogen, California offers an additional $1 to $2 per kilogramme. The IRA is still being finalised, including the incentives for hydrogen-powered vehicles.
According to Nikola CEO Michael Lohscheller, “IRA is huge for us.” “We aim to create the full ecosystem for hydrogen. The hydrogen component is the one that appeals to us the most.
That’s noteworthy considering how generous the incentives are for hydrogen trucks. Each sold hydrogen-powered truck would receive $40,000 under the IRA’s present proposal. According to Lohscheller, California adds $288,000 to each truck sold, bringing the price of Nikola’s trucks close to parity with diesel vehicles.
According to Lohscheller, the firm is on schedule to begin producing its hydrogen-powered vehicles in the second half of this year. Currently, it only makes one electric version of its semi-trucks, the Tre BEV. But, creating a market won’t be simple. Buyers require hydrogen to power the trucks, which necessitates new infrastructure and, in some circumstances, permits.
EV businesses like Nikola have also struggled to meet their production and sales targets. Last year, Nikola produced 258 of the 300 electric semi-trucks it had planned.
Nikola went public in June 2020 via a reverse merger, and since then, the stock price has dropped below the listing price. Stock in the corporation has decreased 31% so far this year.