Nikola (NKLA) announced plans Wednesday to build out hydrogen infrastructure with CNH Industrial‘s (CNHI) IVECO and OGE in Germany. Nikola stock reversed lower.
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The three will work together to extend hydrogen pipelines to fueling stations across the country and to expand fueling locations for fuel cell-powered vehicles.
OGE operates a 12,000-kilometer natural gas pipeline infrastructure network in Germany and Nikola builds heavy-duty commercial vehicles powered by hydrogen fuel cells and batteries.
“The ecosystem of transport will transform and current business models along the value chain will change with the introduction of hydrogen and battery-powered heavy-duty trucks,” said Gerrit Marx, President Commercial & Specialty Vehicles, CNH Industrial, in the release.
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Nikola Stock
Shares gave up earlier gains to 2.5% to 11.75 on the stock market today. Nikola stock remains in a long slump and is well off its high of 93.99 reached in June. CNH shares rose 0.3%.
Among top fuel cell stocks, Fuelcell Energy (FCEL) sank 1.1%. Ballard Power Systems (BLDP) edged up 0.2%, and Plug Power (PLUG) eased 3.1%.
Hydrogen fuel cells are gaining popularity as renewable energy investment has been on the rise globally following the enactment of the Paris Climate Agreement. Even Saudi Aramco, the world’s largest energy company, sees a huge potential for hydrogen fuel.
Hydrogen fuel cells are likely to compete with electric vehicles in the future, and hydrogen-sourced electricity could provide backup generation for wind and solar.
But the expansion of hydrogen fueling stations is needed to help expand fuel cell-powered vehicles.
Follow Gillian Rich on Twitter for energy news and more.
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