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Nikola and TC Energy to develop large-scale hydrogen hubs

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Nikola Corporation and TC Energy Corporation have agreed to collaborate on the co-development, construction, operation, and ownership of large-scale hydrogen production facilities (hubs) in the United States and Canada. Nikola Corporation and TC Energy Corporation are both based in the United States.

Each company’s primary objectives are being met via active collaboration between Nikola’s Energy business unit and TC Energy to discover and develop projects to create the infrastructure necessary to supply low-cost, low-carbon hydrogen at scale. The establishment of hubs in strategic geographic areas is also a priority for Nikola and TC Energy in order to expedite the adoption of heavy-duty zero-emission fuel cell electric vehicles (FCEVs) and hydrogen across various industrial sectors.

One of the collaboration’s primary goals is to develop hydrogen production centers capable of generating 150 tonnes or more of hydrogen per day near heavily trafficked truck corridors in order to meet Nikola’s anticipated need for hydrogen to fuel its Class 8 FCEVs over the next five years. With large pipeline, storage, and power assets under its control, TC Energy has the ability leverage these assets to decrease the cost and speed up the transport of hydrogen to these hydrogen production centers. The integration of midstream assets to enable hydrogen distribution and storage through pipeline, as well as the delivery of CO2 to permanent sequestration sites in order to decarbonize the hydrogen generation process, may be among the options under consideration.

We are pleased to announce a strategic relationship with an energy company that is a North American pioneer in delivering low-carbon and hydrogen-based energy solutions, said Nikola President, Energy and Commercial Pablo Koziner. “The goal of this partnership with TC Energy is to enable the generation of hydrogen in the quantities and at the prices that are necessary to promote consumer uptake and use of FCEV. In addition, TC Energy has pipeline distribution capabilities, which will be critical in the future for the cost-effective transfer of hydrogen in large quantities. Nikola has taken a significant step forward in accordance with its stated energy plan by announcing today that it would provide hydrogen fuel options to future Nikola FCEV customers as well as to public network fueling stations.”

In order to reduce the carbon intensity (CI) of hydrogen generated and delivered to end-use markets, both Nikola and TC Energy are dedicated to employing renewable energy, low-cost natural gas, renewable natural gas, and biomass feedstocks combined with carbon capture and storage. Together, Nikola Energy and TC Energy are working together to develop a technology agnostic approach to finding the most cost-effective pathway to hydrogen production for each unique geography. This approach is intended to result in the lowest possible carbon intensity (CI) and a clear path to achieving net-zero carbon intensity (NCI) over time.

With the help of our natural gas and power operations footprint, we see this new partnership as an important first step in facilitating access to affordable low-carbon hydrogen production for the transportation and industrial sectors, said Corey Hessen. “TC Energy is excited to be a part of this new partnership,” said Hessen, who is also the company’s Senior Vice President and President, Power and Storage. “TC Energy is focused on our own decarbonization initiatives, as well as on becoming the carbon-free energy source of choice for the North American industrial, natural gas, and oil sectors, among other things. Nikola, both as a business partner and as a client, is a good fit for our strategy.”

Arnes Biogradlija
Creative Content Director at EnergyNews.Biz

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