Nikola and KeyState developing Pennsylvania’s first low-carbon hydrogen value chain with CCS

The first low-carbon hydrogen generation value chain in Pennsylvania is being developed by Nikola Corporation and KeyState Natural Gas Synthesis, which also fully integrates commercial carbon capture and storage.

The project aims to illustrate the shift to manufacturing, chemicals, and transportation with lower emissions. To increase the supply of hydrogen for Nikola’s zero-emissions heavy-duty fuel cell electric vehicles, the parties are working toward a final agreement (FCEVs).

Up to 2,500 Nikola Tre FCEVs may be powered by up to 100 tons of low-carbon hydrogen per day, according to KeyState’s supply strategy for Nikola, which will replace more than 51 million gallons of fossil diesel fuel annually used. The 7,000+ acre KeyState site is anticipated to have the capacity to store the CO2 associated with the manufacture of hydrogen once it is operational in 2026 and will offer strategic reach and access to prestigious Mid-Atlantic FCEV markets. In addition to meeting Nikola’s need for hydrogen-powered vehicles, KeyState will also generate urea and ammonia for the industrial and transportation sectors.

The KeyState project aims to produce zero-carbon power by integrating carbon capture from high-efficiency autothermal reforming with on-site geological carbon sequestration and on-site close-system supplied natural gas feedstock. With the separation of 99% of the carbon from the hydrogen in methane and the repatriation of this CO2 to deep underground on-site geological storage, a genuine carbon circle will be completed.

The parties are collaborating to build a liquefaction solution to facilitate the economical and effective distribution of hydrogen from the project to Nikola’s anticipated refueling network, in addition to working toward the hydrogen supply agreement. The parties also intend to support a proposal for a DOE Hydrogen Hub Program principal project that would represent the entire hydrogen ecosystem, from supply to demand.