(Bloomberg) — Nikola Corp. reached a preliminary deal with Opal Fuels LLC to construct hydrogen fueling stations in North America, part of an effort to develop promised infrastructure critical to the alternative-energy truckmaker’s growth plans.
Under a memorandum of understanding, the companies will co-develop hydrogen-fueling stations and explore the use of renewable natural gas, according to a statement Thursday. Financial terms of the agreement weren’t disclosed.
“Today marks another important step forward in Nikola’s stated energy infrastructure plans and its focus on providing hydrogen fueling services to customers,” Pablo Koziner, Nikola’s president for energy and commercial operations, said in the statement.
Nikola last month was forced to slash the delivery projection for its debut electric big rigs in half to no more than 50 vehicles because of persistent supply-chain issues. It plans to build its first hydrogen-powered truck in 2023. The Phoenix-based company meanwhile is attempting to distance itself from founder Trevor Milton, who faces federal charges that he made false statements to investors.
Nikola rose 2% to $10.82 before the start of regular trading Thursday in New York. The stock had tumbled 30% this year through Wednesday while the Russell 2000 Index advanced 13%
The initial focus of the Opal venture will be to serve large private fleets that use their own dedicated fueling systems. Opal has built more than 350 fueling stations for renewable natural gas across North America.
Nikola has said it plans to develop hundreds of hydrogen stations across the U.S. In April it signed a deal to build stations with TravelCenters of America Inc.
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