Usually when we talk about green vehicles, we talk about cars and electric trucks. One alternative to using batteries for emission-free driving is hydrogen fuel cells. When the biggest challenge for hydrogen moving forward is the lack of hydrogen fuel filling infrastructure in most countries and throughout the world. A company called Nikola built a semi-truck that runs on hydrogen.
While developing technology for vehicles itself is a big challenge, a significant road barrier for sales and getting a hydrogen-powered vehicle on the road is a hydrogen refueling infrastructure. Nikola and TC Energy have announced that they have signed a joint development agreement for large-scale hydrogen hubs.
The development of hydrogen production hubs will support the supply needs of hydrogen fuel that is projected for the nicola fleet of heavy duty fuel cell vehicles. Infrastructure will also serve the needs of TC energy customers in North America. The two companies want to build a hub that can produce 150 tons or more hydrogen every day near the truck corridor that is highly traded.
Nikola processes significant hydrogen fuel demand to operate FCEV class 8 in the next five years. TC Energy has significant pipes, storage, and power assets in places that can be used to help reduce the cost of hydrogen and increase how fast hydrogen can be delivered. The agreement includes commitment to produce carbon production intensity and hydrogen delivery.
It will utilize low-cost natural gas, renewable natural class, and biomass raw material along with carbon catches and storage technology. There is no clear indication of how many hydrogen production hubs will be built on this agreement or when the first will be ready to start production. Companies do have goals stated to achieve the intensity of net-zero carbon over time.