Under the green hydrogen supply agreement, revealed today (December 15), will see Plug supply the hydrogen-truck manufacturer from January 1, 2023, with volumes ramping up to 125 tonnes per day as Plug’s green hydrogen production network continues to come online.

H2 View understands the agreement anticipates the 125 tonne per day volume will come in by the end of 2026, with 80% under a take-or-pay contract.

Furthermore, Plug has said it will purchase up to 75 Nikola Tre fuel cell electric vehicles over the next three years to bring green hydrogen to its customers in North America, with the first trucks expected to be delivered in 2023.

Nikola has awarded Plug a contract to provide one 30 tonnes per day hydrogen liquefaction system for its recently announced Arizona Hydrogen Hub. Plug has said the system could potentially scale to 150 tonnes per day.

Read more: Nikola Phoenix Hydrogen Hub enters second phase for $1.3bn hydrogen production loan

It comes as Nikola plans to build out a network of US hydrogen refuelling stations, for which it plans to provide access of up to 300 tonnes of hydrogen per day to satisfy the planned 60 stations by 2026.

Read more: Nikola, TravelCentres of America unveil plans for hydrogen stations

“Nikola and Plug share a common vision for sustainable, efficient, energy solutions which supports our commitment to decarbonise the transportation industry,” said Carey Mendes, President, Energy at Nikola. “This strategic relationship will help underpin Nikola’s ambitious growth plans to expand the hydrogen energy business and to support the adoption of Nikola’s zero-emission Class 8 trucks.”

Sanjay Shrestha, Chief Strategy Officer at Plug Power, commented, “Our vertically integrated solutions, which are designed to fit individual customer needs, include hydrogen production equipment or the delivery of green hydrogen fuel, whichever is preferred. We look forward to our strategic relationship with Nikola as we advance the hydrogen economy forward.”