Why Is Nikola (NKLA) Stock Up 15% Today?

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Nikola (NASDAQ:NKLA) stock is up by about 15% today after the company announced a collaboration with KeyState Natural Gas Synthesis. The two companies will work together to create the “first low-carbon hydrogen production value chain” in Pennsylvania. In addition, the collaboration will provide Nikola with “full integration of commercial carbon capture and storage” and up to 100 tons of low-carbon hydrogen per day. Currently, Nikola and KeyState are working on a definitive agreement to expand Nikola’s hydrogen supply.

Carey Mendes, President of Energy at Nikola, had the following to say:

“Nikola’s participation in the project will allow us to secure sufficient volumes of hydrogen to underpin and accelerate the adoption of zero-emission trucks by unlocking new customer demand and enabling key investments in downstream hydrogen refueling infrastructure in the Mid-Atlantic region.”

The 100 tons of low-carbon hydrogen per day will be able to power up to 2,500 Nikola Tre fuel-cell electric vehicles (FCEVs). That can also replace 51 million gallons of fossil fuel per year. Upon completion of the Pennsylvania site in 2026, the 7,000 acre facility will be able to store the CO2 necessary for hydrogen production and “provide strategic reach and access to premium Mid-Atlantic FCEV markets.”