Nikola (NASDAQ:NKLA) stock is heading higher on Wednesday after the clean energy company announced plans for a hydrogen hub in the midwest.
According to a press release, Nikola is teaming up with Wabash Valley Resources for the effort. This has it investing $50 million in cash and stock in exchange for a 20% equity interest in the hydrogen hub project.
This hub will be set up in West Terre Haute, Ind. It will use solid waste to byproducts “produce clean, sustainable hydrogen for transportation fuel and base-load electricity generation.” It will also capture “CO2 emissions for permanent underground sequestration.”
Nikola notes that the hydrogen hub will be able to generate 50 tons per day that will supply its dispensing stations. This will have it able to reach dispensing stations that are up to 300 miles away from the hub. That will allow it to cover a large portion of the midwest.
Pablo Koziner, president of Energy and Commercial at Nikola, said this about the news boosting NKLA stock up today.
‘The Wabash solution can generate electricity as well as hydrogen transportation fuel, which should provide the flexibility to support future truck sales and hydrogen station rollout in the region. The expected efficiency of WVR’s clean hydrogen production should allow Nikola’s bundled truck lease, including fuel, service, and maintenance, to compete favorably with diesel.”
NKLA stock is seeing strong trading today on the hydrogen hub news. As of this writing, more than 12 million shares of the stock have changed hands. That has it quickly approaching the company’s daily average trading volume of 14.3 million shares.
NKLA stock was up 4.5% as of Wednesday afternoon.
Nikola isn’t the only company seeing its shares move on Wednesday.
There’s plenty of other news concerning that stock market that investors will want to be aware of. That includes the latest info that has meme stocks, Clover Health Investments (NASDAQ:CLOV), and Western Sierra Resource (OTCMKTS:WSRC) shares on the move.
More Wednesday Stock Market News
- Meme Stocks: What’s Going on With SPCE, CLOV, EXPR, GME and AMC Today?
- CLOV Stock: What Reddit Investors Are Saying as Clover Health Shares Surge Today
- WSRC Stock: 13 Things to Know About Penny Stock Western Sierra Resource After Shares Rocketed Nearly 1,000%
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.