Nicola is starting a new partnership agreement with KeyState, in order to provide the state of Pennsylvania with its first low-carbon hydrogen production value chain. 

Nikola is a provider of zero-emissions transportation, energy supply and infrastructure solutions; and KeyState Natural Gas Synthesis is a clean hydrogen and chemicals production facility still under development. The two companies are combining their efforts to create a carbon-free energy value chain, with the added benefit of creating an advanced carbon capture and storage system that will have other commercial uses. 

This huge project is considered part of Nikola's effort to lead the charge toward a lower-emissions transportation system, combined with clean chemical production operations. The new agreement will secure a steady supply of hydrogen to fuel Nikola’s zero-emissions heavy-duty fuel cell electric vehicles (FCEVs).

“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's President, 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.”

For its part of the deal, KeyState promised to supply Nikola with 100 tones of low-carbon hydrogen per day. This will have a great impact on fossil energy usage because such large quantities of hydrogen are expected to replace over 51,000,000 gallons of fossil diesel fuel per year. And it will also be enough to fuel 2,500 Nikola Tre FCEVs. 

As for the question of the Carbon emissions resulting from the substantial Hydrogen production, KeyState production plant will be capable of capturing and storing the entirety of its CO2 emissions, To do that, the company came up with a genius idea; the captured carbon emissions will be injected deep underground into a completely closed carbon circle that allows for the production of 99% pure hydrogen and create enough carbon supply for generating zero-carbon electricity.

Transportation and distribution of the produced hydrogen will be further enhanced in the future through a system of liquefaction; this will allow the two companies to easily expand and supply their Hydrogen refueling network. 

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