Nikola Corporation (NASDAQ: NKLA), a manufacturer of electric and hydrogen powered vehicles, has made it to the second stage of a major loan application with the United States Department of Energy (DOE) for a multi-purpose hydrogen facility in Arizona.
The company announced the news on Thursday and the pending US$1.3 billion in funding from the DOE’s Loan Program Office would go toward the company’s Phoenix Hydrogen Hub LLC (PHHL) project and its facility supporting the deployment of heavy duty fuel-cell electric vehicles and hydrogen refuelling stations in the American southwest.
The project loan application was submitted to the government office at the end of May and has now progressed through phase I of the process about six months later.
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Upon completion, the facility on the 920-acre site in Maricopa County, Arizona owned by Nikola’s PHHL project would house a hydrogen production facility capable of producing 150 metric tons of the clean fuel every day. The hub would be constructed in phases with the first being completed in 2024, pending approvals.
Nikola is currently awaiting the DOE’s review of the application’s second phase and determination of whether or not to proceed with the project.
“This hub is intended to provide urgently needed renewable-based energy solutions and a pathway to a decarbonized transportation sector,” said Carey Mendes, President of Nikola.
“What’s more, it is expected to support clean hydrogen use in additional applications such as industrial, residential, and commercial heating, as well as for decarbonizing natural gas and power generation.”
rowan@mugglehead.com