FFI, run by Fortescue boss Andrew ‘Twiggy’ Forrest, said it planned to buy Nikola’s Phoenix Hydrogen Hub (PHH) project and provide capital and resources to complete the project.

The hub would be developed in phases to match demand and should be producing hydrogen by mid-decade.

FFI and Nikola signed a memorandum of understanding last January to develop large US green hydrogen production projects.

They are working on a hydrogen supply agreement as demand grows for Nikola’s hydrogen fuel-cell EVs.

The project is expected to benefit from the US federal government’s Inflation Reduction Act hydrogen tax credit plus state-level incentives like California’s Low Carbon Fuel Standard.

The Phoenix project is in the final stages of the permit process and equipment is being ordered.

Nikola said that it had received a $US41.9 million grant by the California Transportation Commission (CTC) to build six heavy-duty hydrogen refuelling stations across Southern California.

The funds were allocated to Nikola and its sponsor, California Department of Transportation (Caltrans), under the Trade Corridor Enhancement Program (TCEP).

It will allow Nikola to accelerate development of its zero-emissions hydrogen refuelling infrastructure which is vital for the launch of its hydrogen fuel-cell electric trucks.

The news follows Iveco Group taking full ownership of Nikola Corporation and the splitting of responsibilities with Nikola focused on North America and Iveco concentrating on Europe.

The two companies first partnered in 2019 when they worked jointly to launch battery-electric vehicles (BEV) and fuel-cell electric vehicles (FCEV).

Iveco will now concentrate on Europe for further development and commercialisation of its own BEV and FCEV truck.    

Nikola will focus operations on North America, offering BEV, FCEV and hydrogen infrastructure through its HYLA brand.

Iveco will assume full ownership of the joint venture in Ulm, Germany. Iveco will be licensed to freely access and continue developing vehicle control software for the jointly developed BEV and FCEV.

Included in the deal, Nikola is given access to the Iveco S-Way technology licence for North America and related component supply from Iveco Group. It will also gain joint ownership of the intellectual property of Generation 1 eAxles, technology developed together with Iveco Group’s powertrain brand, FPT Industrial.

The two companies in 2021 signed a memorandum of understanding with Hamburg Port Authority during the inauguration of their joint manufacturing facility in Ulm. The agreement will see up to 25 ‘Tre’ BEVs for delivery to the port.

By Neil Dowling