PHOENIX, Jan. 12, 2021 /PRNewswire/ -- Nikola
Corporation (NASDAQ: NKLA) has secured an innovative electric rate
schedule with Arizona Public Service Company ("APS") that makes
possible the accelerated development of hydrogen-based fueling
solutions for the transportation industry. Nikola is a
company dedicated to the advancement of innovative zero-emissions
truck solutions and the energy infrastructure required to make this
feasible. By facilitating low-cost production of hydrogen,
the Arizona Corporation Commission's ("ACC") approval of this rate
schedule paves the way for the curtailment of greenhouse gases in
the transportation sector, while also providing benefits to key
constituents via novel grid-balancing
solutions.
Today's unanimous approval of this agreement by the ACC provides
Nikola with a competitive electric rate specifically designed for
the production, processing, and dispensing of hydrogen. This will
support, among other things, enabling a zero-emission heavy-duty
freight corridor along the I-10 freeway between Los Angeles and Phoenix.
APS's competitive electric rate will help lead the creation of
the hydrogen economy in Arizona. Nikola estimates that under
the rate structure it will be able to deliver hydrogen at market
leading prices and within the ranges required for Nikola to offer
competitive lease rates for its trucks customers.
The agreement reflects value that results from the curtailment
flexibility that Nikola's hydrogen production facilities are
expected to provide to the electrical grid. These facilities will
be configured to respond to the needs of the grid, for example by
reducing Nikola's energy consumption from the electric grid during
heatwaves. This agreement will encourage Nikola to deploy capital
within the state, increase electric load relating to hydrogen
production, and further develop and employ a highly skilled and
well-educated workforce.
Nikola CEO, Mark Russell,
celebrated today's critical milestone stating: "Nikola values the
joint efforts of APS and the ACC to enable competitive electrolytic
hydrogen production. The approval of this special rate for hydrogen
production is critical for advancing the future of zero-emissions
transportation and building a hydrogen economy."
Nikola President of Energy and
Commercial, Pablo Koziner, added,
"Through this agreement, Nikola is assured a reliable and
competitively priced source of electricity that will allow us to
commence the development of hydrogen production facilities to serve
the fueling needs of our truck customers. The agreement sets
an important precedent in showcasing that innovative operational
solutions can be developed for the economic production of hydrogen
that maximize benefits to all stakeholders."
The approval of this agreement marks an important milestone.
Going forward, Nikola will work with APS to finalize site selection
and interconnection requirements to establish its first hydrogen
production facility in Arizona.
"For decades, hydrogen has been a promising, but elusive, source
of clean energy for both the transportation and power
sectors. We simply haven't done enough to bring hydrogen to
the mainstream," stated Chairwoman Lea Márquez Peterson. "As
we begin to enter a new energy economy, however, I want to ensure
that we take all steps necessary to promote Arizona's gradual and innovative move towards
decarbonization. By supporting this application, we are doing
exactly that. Let's make our great state the nation's
epicenter of hydrogen production, processing, and fueling, and
let's have Arizona serve as a
model to other states about clean energy
innovation."
ABOUT NIKOLA CORPORATION:
Nikola Corporation is a
designer and manufacturer of zero-emission battery-electric and
hydrogen-electric vehicles, electric vehicle drivetrains, vehicle
components, energy storage systems, and hydrogen station
infrastructure, Nikola is driven to revolutionize the economic and
environmental impact of commerce as we know it today. Founded in
2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit
www.nikolamotor.com or Twitter @nikolamotor.
FORWARD LOOKING STATEMENTS
Certain statements
included in this press release that are not historical facts are
forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform Act of
1995. Forward-looking statements generally are accompanied by words
such as "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect," "should," "would," "plan,"
"predict," "potential," "seem," "seek," "future," "outlook," and
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding potential benefits related to the secured
electric rate schedule and the company's ability to accelerate its
development of hydrogen based fueling stations that can be
configured to respond to the needs of the grid, as well as, help
create a hydrogen economy; the ability to create a zero-emission
freight corridor between Phoenix
and Los Angeles; the company's
ability to produce market leading low-cost hydrogen and also allow
for competitive truck lease rates; the duration of the
competitively priced electric rate and its impact on the company's
hydrogen production cost and plans; expectations regarding its
hydrogen business, and related business model and strategy; and
market opportunities related to the company's hydrogen plans. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of Nikola's management and are not predictions of actual
performance. Forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements, including but not
limited to general economic, financial, legal, regulatory,
political and business conditions and changes in domestic and
foreign markets; the potential effects of COVID-19; the outcome of
legal proceedings to which Nikola is, or may become a party;
failure to realize the anticipated benefits of the recently
completed business combination; the conversion of pre-orders into
binding orders; risks related to the rollout of Nikola's business
and the timing of expected business milestones; the effects of
competition on Nikola's future business; the availability of
capital; and the other risks detailed from time to time in Nikola's
reports filed with the Securities and Exchange Commission,
including its quarterly report on Form 10-Q for the quarter ended
September 30, 2020 and other
documents Nikola files with the SEC. If any of these risks
materialize or our assumptions prove incorrect, actual results
could differ materially from the results implied by these
forward-looking statements. These forward-looking statements speak
only as of the date hereof and Nikola specifically disclaims any
obligation to update these forward-looking statements.
MEDIA CONTACTS:
Nicole
Rose
nicole.rose@nikolamotor.com
480-660-6893
Colleen Robar
crobar@robarpr.com
313-207-5960
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SOURCE Nikola Corporation