Nikola Corp. receives $41.9 million grant to build six hydrogen refueling stations
Nikola Corp was awarded a grant to build six new hydrogen refueling stations in Southern California, the Phoenix-based company announced Wednesday.
Nikola (Nasdaq: NKLA), through its HYLA brand, received a $41.9 million grant from the California Transportation Commission under the state’s Trade Corridor Enhancement Program, according to a company release.
The California Department of Transportation sponsored Nikola’s grant application and is working with the company to deploy the six hydrogen refueling stations along freight corridors within the South Coast Air Quality Management District, San Diego County Air Pollution Control District, and Mojave Desert Air Quality Management District.
The hydrogen refueling stations will be designed to scale over time and each intended to support refueling of 80 to 100 trucks per day, according to the company.
“This award, in collaboration with Caltrans, will allow us to accelerate the deployment of zero-emissions hydrogen refueling infrastructure, which is vital for the successful launch our hydrogen fuel cell electric trucks in July,” Carey Mendes, president of Nikola Energy, said in a statement.
The project furthers Caltrans’ strategy to incentivize development of zero-emission vehicle freight technology as well as support the California Statewide Truck Parking Study through a provision of creating safe places for truck drivers to park.
Nikola expects all six stations to be operational within two to three years, with some to start as soon as the fourth quarter or early 2024, a company spokesperson told the Business Journal.
Nikola slated to host shareholder meeting Thursday
The grant award follows the company’s announcement last month that it’s laying off 270 workers, 230 of whom are based in the Phoenix area as part of a plan to reduce its cash outlay below $400 million by 2024.
The company is expected to host a shareholder meeting on Thursday in which it’s seeking approval to increase its authorized common stock from 800 million to 1.6 billion shares to sustain operations.
Nikola indicated a renewed focus on its hydrogen fuel cell trucks, HYLA hydrogen refueling business and operations in the North American market as it seeks to slash costs.
In May, Nikola inked a development agreement with Voltera Power, which will supply funding for up to 50 HYLA hydrogen fueling stations over the next five years, in addition to entering agreements with Chart Industries and Taylor Wharton to supply equipment to produce, transport and dispense hydrogen using mobile fuelers and modular stations.
Nikola’s stock closed Wednesday at $1.43 a share, up 4.3%. Track the stock here.