Nel ASA and Nikola Corp. have realigned their previous supply agreement for the supply of 110 alkaline stacks, Nel announced Feb. 2 in a press release.

At the same time, Nel is becoming metal mining and green energy company Fortescue’s supplier for its 80-megawatt (MW) electrolyser. The agreements have a total consideration of about $20 million, according to the press release.

In 2018, hydrogen technology company Nel and green energy company Nikola originally entered into a supply agreement, followed by a firm purchase order for 85 MW of electrolyzer equipment in 2020.

The original arrangement is now canceled, and both companies have a new supply agreement for 110 alkaline stacks and related balance of stack equipment. As compensation for the modified scope, Nel will receive around $9 million, the release stated.

Fortescue’s acquisition of Nikola’s Phoenix Hydrogen Hub includes the installation of 80 MW of electrolyzer equipment previously supplied by Nel to Nikola. In return for updated guarantees and warranties for the equipment and changes in the scope of delivery, Nel will receive about $11 million from Fortescue.

Comments