Nikola (NASDAQ:NKLA) stock is soaring higher on Wednesday after announcing a deal with the Arizona Public Service Company (APS) for hydrogen energy.
This deal will allow Nikola to speed up its development of hydrogen fuel for its vehicles. That includes having it act as a developer of a “zero-emission heavy-duty freight corridor along the I-10 freeway between Los Angeles and Phoenix.”
Nikola will work alongside the APS and Arizona Corporation Commission (ACC) to create its first hydrogen production facility in the state. The company’s facilities will be set up to benefit the electric grid in Arizona, such as allowing for less power pull during heatwaves.
According to Nikola, this deal will allow it to push Arizona into a hydrogen economy. It expects this to allow it to offer up hydrogen to truck customers at market leading prices. This should also allow for competitive lease rates to those customers as well.
Pablo Koziner, president of Energy and Commercial at Nikola, said this about the news boosting NKLA stock up.
“Through this agreement, Nikola is assured a reliable and competitively priced source of electricity that will allow us to commence the development of hydrogen production facilities to serve the fueling needs of our truck customers. The agreement sets an important precedent in showcasing that innovative operational solutions can be developed for the economic production of hydrogen that maximize benefits to all stakeholders.”
NKLA stock was up 19.5% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.