Nikola is working to create Pennsylvania's first low-carbon hydrogen production value chain to support its fuel-cell-electric Class 8 trucks.

Nikola working toward a definitive agreement with KeyState Natural Gas Synthesis — a clean hydrogen and chemicals production facility under development — to expand the hydrogen supply for Nikola. The hydrogen production includes full integration of commercial carbon capture and storage.

KeyState plans to supply Nikola with up to 100 tons per day of low carbon hydrogen, which can supply fuel for up to 2,500 Nikola Tre FCEVs, Nikola officials said in a press release.

Once operational in 2026, the 7,000 plus-acre KeyState site is expected to have the capacity to store the carbon dioxide associated with the hydrogen production and will provide strategic reach and access to Mid-Atlantic FCEV markets. KeyState will also produce ammonia and urea for industrial and transportation markets, in addition to Nikola's hydrogen mobility demand.

"Nikola's participation in the project will allow us to secure sufficient volumes of hydrogen to underpin and accelerate the adoption of zero-emission trucks by unlocking new customer demand and enabling key investments in downstream hydrogen refueling infrastructure in the Mid-Atlantic region," said Nikola President of Energy Carey Mendes. "This will be key to our supply strategy and will help develop our refueling network at scale. Additionally, the low carbon, clean hydrogen will allow us to maximize value under the Inflation Reduction Act and future downstream fuel and dispensing incentive programs."

In addition to working toward the hydrogen supply agreement, the parties are working together to develop a liquefaction solution to support the economic and efficient distribution of hydrogen from the project to Nikola's planned refueling network under development. The parties also plan to support an application as a principal project of the DOE Hydrogen Hub Program representing the full-use hydrogen ecosystem from production through demand.