Nikola Corporation is laying down the foundations of an integrated hydrogen-powered transportation infrastructure by partnering with ITD Industries to launch the first hydrogen refuelling station in Ontario.

Located at ITD's headquarters in the Toronto borough of Etobicoke, the station is an important step forward for Nikola, a global leader in zero-emissions transportation, energy supply and infrastructure solutions.

The once high-flying U.S. manufacturer of hydrogen and battery-powered semi-trucks is now looking to expand its brand across Canada as part of an overall strategy to overcome a series of financial and technical setbacks that have beset the Arizona-based company.

The filling station relies on a 700-bar pressure-fill system to provide hydrogen fuel for onboard storage long-range vehicles including the Nikola hydrogen fuel cell electric Class 8 truck.

"It is inspiring to witness the vision of a hydrogen-powered future coming to life with the opening of this refuelling station in the Greater Toronto Area," Nikola CEO Steve Girsky said at a July 30 ceremony that was also attended by Ontario Premier Doug Ford. 

"Collaborating with ITD Industries, we are not only providing trucks but also the fuelling solutions to support the entire hydrogen ecosystem. This station marks significant progress in our mission to build a comprehensive hydrogen infrastructure in North America."

Nikola poised for rebound in 2024

The station lies in close proximity to Highway 401, Highway 427, and the Queen Elizabeth Way highway (QEW), three of the city's busiest transportation arteries. It is intended to be part of a future network of hydrogen fuelling stations serving a growing number of companies beginning the process of transitioning to zero emissions trucking fleets.

"This station is the first of several ITD is planning on erecting across Ontario with Nikola Corporation as we aim to build a hydrogen fuelling corridor connecting Windsor to Montreal," Philip Turi, COO of ITD Industries, noted on the occasion of the launch.

Nikola, the embattled hydrogen fuel cell truck, and battery-powered electric truck manufacturer, is in the process of rebounding from a $1.3-billion net loss in 2023, a year that saw the company recall all of its battery-powered trucks after coolant leaks in its battery packs led to fires in some of its vehicles.

But Nikola's Q2 2024 earnings report released on Aug. 9 suggests the company may be turning the corner. It posted the strongest topline in company history with revenue of $42.9 million, a three-fold increase from first-quarter results.

The positive numbers reflected the company's wholesaling of 72 hydrogen fuel cell trucks in Q2 - exceeding guidance of 50 to 60 units.  This followed Nikola's delivery of its first series of 35 such trucks in Q4 2023 and an additional 40 in Q1 2024.

In May, Nikola CEO Girsky announced he expects sales volume to expand significantly in 2025 and again in 2026: "We’re seeing green shoots with repeat and new fleets . . . While our initial focus has been California and Canada, we can expand our reach to meet the demands of end fleet users virtually anywhere in the U.S.," said Girsky in an earnings call with investors.

Another encouraging sign that Nikola is making headway in Canada came with the announcement that Walmart Canada has become the first major retailer in the country to add a Nikola hydrogen fuel cell truck to its fleet. Other major firms, including Canadian Tire and Loblaws which had representatives at the kickoff event, could also become important Nikola customers.

Nikola is forecasting "significant growth" in Canada after qualifying under the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program offering Canadian companies up to $200,000 toward the purchase or lease of the Nikola hydrogen fuel cell electric truck. In addition, iMHZEV is also providing a maximum of $150,000 in incentives toward the purchase or lease of the Nikola battery-electric truck.

Building out the North American "hydrogen highway" 

Nikola Motors sees itself as a trailblazer in the development of a renewable transportation sector and intends to establish a hydrogen refuelling station network in Ontario, Alberta, and British Columbia in support the deployment of hydrogen fuel cell trucks.

Heading up this Canadian expansion program is Jorg Wimbert, head of Canada at Nikola Corporation.

He has been tasked with turning the company into a major player in the Canadian hydrogen-powered trucking market that offers the greatest potential of decarbonizing a freight transportation sector which contributes 10.5 per cent of Canada's carbon dioxide emissions. 

"We are the trailblazers in this [sector] by means of our zero-emission, class-8 trucks that we're bringing to the North American market," Wimbert said in an interview with Sustainable Biz Canada. 

"Not only are we building these trucks, but we're building out the hydrogen refuelling infrastructure that is, to me, the key to success. We are now establishing the first-ever hydrogen highway that will enable the decarbonization of freight trucking across North America."

Solving the "chicken and the egg" hydrogen paradox

Wimbert, who holds a master’s in applied mathematics from Germany's University of Heidelberg and previously worked for BP Canada, explained that Nikola has adopted a parallel approach to developing the hydrogen transportation sector.

"We call it the chicken and the egg (approach).  It's important to bring the chicken and the egg in parallel to the market. We are an OEM manufacturing battery-electric and hydrogen electric fuel cell trucks, but you need to have the refuelling infrastructure in lockstep with them and that's what we're doing.

"We are focusing on California in the U.S., while in Canada we're initially targeting four provinces - B.C., Alberta, Ontario, and Quebec - and I look at Ontario, Quebec as one.

"These are self-sustaining, micro-hydrogen ecosystems. By building and deploying modular hydrogen refuelling stations you enable the creation of a self-sustaining ecosystem where freight moves back and forth with zero emissions.

"That's very exciting . . . You have the Alberta highway between Edmonton and Calgary and with Ontario and Quebec you can go all the way from Windsor to Quebec City.  That's what we want to build out."