Nikola Corporation has sold its Phoenix Hydrogen Hub (PHH) project to Fortescue Future Industries (FFI). Nikola says the decision to sell the PHH project allows them to tap into the capital and resources necessary to speed up the development of their Class 8 hydrogen-fueled trucks
The Phoenix Hydrogen Hub is a green hydrogen initiative located in Buckeye, Arizona, near Phoenix. The hub is designed to be developed in phases in line with growing demand. Currently, the project is in the final stages of the permitting process, with the aim to start hydrogen production by mid-decade.
“Nikola’s priority is to see more zero-emission trucks on the road and this acquisition by FFI will greatly strengthen one of the country’s first and most important hydrogen hubs. FFI’s acquisition of this project is a significant milestone as we work to create an all-important local connective infrastructure to accelerate the use of hydrogen to fuel zero-emission vehicles,” said Nikola Corporation president and CEO Michael Lohscheller.
Nikola and FFI have been working on this deal for over half a year when a Memorandum of Understanding was signed in January to collaborate on and evaluate the co-development of large-scale green hydrogen production facilities in the US.
As part of the deal, FFI and Nikola are actively working on a hydrogen supply agreement to cater to the demand for hydrogen fuel cell electric vehicles. The adoption of hydrogen as a zero-emission fuel in the transportation sector is expected to benefit from federal incentives, including the hydrogen tax credit in the Inflation Reduction Act, as well as state-level initiatives like the Low Carbon Fuel Standard in California.
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