Nel and Nikola reposition agreement to support 80MW hydrogen hub
Nel has realigned its previous electrolyser supply agreements with Nikola and has decided to support Fortescue Metals Group’s 80MW Phoenix Hydrogen Hub.
The Norwegian company will become Fortescue’s electrolyser supplier for around $20m. Fortescue’s acquisition of Nikola’s Phoenix hub includes the installation of electrolyser equipment delivered by Nel to Nikola, with the latter set to receive around $11m from Fortescue.
In 2018, Nel entered into a supply agreement with Nikola and later a firm purchase order for 85MW of electrolyser equipment that has already been delivered. The old supply agreement has been cancelled and will now agree to 110 alkaline stacks and related balance of plant equipment. As compensation for the changed agreement, Nel will receive around $9m.
Håkon Volldal, President and CEO of Nel, said, “We are pleased to have initiated a plan with Nikola that reflects Nel’s preferred scope of supply, and look forward to continuing our relationship with the company.
“Nel is thrilled to partner with yet another solid and committed company such as Fortescue,” added Volldal. “We look forward to installing the equipment and supporting Fortescue on this important project, which reached final investment decision (FID) last year.”
Last November, Fortescue approved the FID to construct the Phoenix Hydrogen Hub in Arizona, the US, anticipated to produce up to 11,000 tonnes of liquid hydrogen per year, with first production planned for 2026.