Nikola thinks truck and hydrogen costs will fall due to the Inflation Reduction Act

Nikola thinks truck and hydrogen costs will fall due to the Inflation Reduction Act

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October 24, 2022 0 By Bret Williams

Incentives are expected to help the H2 energy business to be able to lower prices.

Inflation Reduction Act (IRA) incentives will help Nikola Corp to be able to ensure it keeps its electric trucks and hydrogen costs to a minimum, according to the company in a recent statement.

US President Joe Biden signed the IRA in August 2022, launching substantial renewables incentives.

IRA offers considerable incentives meant to boost the manufacturing and adoption of battery, electric, and H2 vehicles in the United States. According to Nikola, this legislation will also help to keep truck and hydrogen costs down so that its product ownership will be competitive when compared to conventional diesel-powered trucks.

Hydrogen costs - H2 Station

The company also recently unveiled its intentions to build as many as 60 H2 refueling stations by 2026, to make it possible to distribute as much as 300 metric tons of low-carbon H2 supply. The tax credits and incentives from the IRA will help the company to be able to lower the price of that H2, while reducing the expense associated with the dispensing infrastructure and the trucks themselves, said the company. It also added that this will help it to create more jobs.

Companies producing H2 will receive as much as $3 per kilogram toward the hydrogen cost.

H2-producing companies will be able to receive as much as $3 per kilogram for the first five years they are in production.

“If you’re getting something at lower cost, I think you pass that on to the customer, they benefit, volumes go up, and so on,” explained Carey Mendes, President of Nikola Energy, as quoted in a Reuters report.

The company’s goal is to sell fuel cell trucks with which they can bundle the H2 for that vehicle by constructing a refueling station near the locations of the customers. “What we try and do is give them a surety both on price as well surety of supply (of hydrogen),” explained Mendes.

Through a $40,000 tax credit, the company might also be able to enjoy a reduction of its upfront truck and hydrogen costs. This will help to ease the early expenses for the Nikola Tre battery electric and fuel cell trucks, making it more affordable for companies transitioning their fleets from diesel power to low-carbon or zero-carbon alternatives.

Article Summary…hydrogen news article summary

-The Incentives from the IRA will help Nikola to reduce the price of hydrogen, while reducing the expense associated with the dispensing infrastructure and the trucks themselves.
-This will help Nikola to create more demand for its products, and help to make them more competitive when compared to conventional diesel-powered trucks.
-Additionally, Nikola recently unveiled its intentions to build as many as 60 H2 refueling stations by 2026, in order to distribute as much as 300 metric tons of low-carbon H2 supply.
– The company’s goal is to sell fuel cell trucks with which they can bundle the H2 for that vehicle by constructing a refueling station near the locations of the customers.
– By constructing a refueling station, the company will be able to ease the early expenses for the Nikola Truck.
– The company might also be able to enjoy a reduction of its upfront truck and hydrogen costs because of a $40,000 tax credit.