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TC Energy (TRP), Nikola Team Up for Development of Hydrogen Hub

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TC Energy Corporation (TRP - Free Report) along with electric truck manufacturer Nikola Corporation (NKLA - Free Report) recently decided to team up on the co-development, construction, operation and ownership of large-scale hydrogen production centers in the United States and Canada.

In line with each company's primary goals, Calgary, Alberta-based TC Energy and Nikola's Energy business unit are coordinating on ways to develop projects to create an infrastructure necessary to supply low-cost and low-carbon hydrogen at volume. Also, both firms intend to build hubs in major geographic regions to expedite the adoption of heavy-duty zero-emission fuel cell electric vehicles (FCEVs) and hydrogen across all industrial segments.

A primary aim of this partnership is to construct sites capable of generating more than150 tons of hydrogen daily across heavily trafficked truck corridors to meet Nikola's anticipated requirement of hydrogen for fueling its Class 8 FCEVs over the next five years.

TC Energy has extensive pipeline, storage and power assets that may be used in reducing the expense and improving the speed of supply of these hydrogen-production centers. This could involve evaluating the integration of midstream assets to allow pipeline-based hydrogen distribution and storage as well as delivering carbon dioxide to permanent sequestration sites for decarbonizing the hydrogen generation process.

The company, which shares the same industrial space with Suncor Energy Inc. (SU - Free Report) and Enbridge Inc. (ENB - Free Report) , believes along with Nikola that hydrogen can be generated by utilizing natural gas, renewable natural gas and biomass feedstocks in combination with carbon capture and storage to achieve net-zero carbon intensity over time.

TC Energy is committed to its own carbon-reduction initiatives while becoming the carbon-free energy source of choice for the North American industrial, natural gas and oil sectors.Established in 1951, TC Energy is a premier energy infrastructure provider in North America. The company is primarily focused on natural gas transmission through its 57,500-mile network of pipelines located in Canada, the United States and Mexico. It is also involved in other businesses including power generation, natural gas storage and crude oil pipelines.

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