Nikola: Setting the bar too high
Photo by Austrian National Library on Unsplash
The recent news of Nikola Corporation filing for Chapter 11 bankruptcy protection in the United States has undoubtedly sent ripples through the hydrogen and electric vehicle sectors. Once a beacon of innovation with a market valuation nearing $30 billion, Nikola's journey underscores the multifaceted challenges inherent in pioneering alternative transportation fuels.
With more than 35 years dedicated to the development of alternative transportation fuels, we at Change Energy Engineering have witnessed numerous high-visibility projects, propelled by ambitious policy goals and emerging technologies, struggle to achieve sustainable success. Nikola's trajectory serves as a poignant reminder that, while groundbreaking technologies capture attention, the foundation of a robust and reliable infrastructure is indispensable.
Nikola's decision to implement 700-bar on-board hydrogen storage aimed to address range concerns by extending vehicle mileage; however, the infrastructure required for 700-bar refuelling is both expensive and complex, leading to elevated capital and operating costs, and consequently, higher fuel prices, fewer fuelling stations, and therefore lower overall reliability of the system. This scenario can deter widespread adoption, as potential users weigh the benefits of using clean, low-carbon fuels against the practical challenges of fuel availability and cost.
The path to integrating alternative fuels into mainstream applications demands a holistic approach. It's not solely about the end-product but also about ensuring:
Accessible and affordable fuel supply chains: From production to delivery, every step must be streamlined and cost-effective.
Comprehensive maintenance and support networks: Vehicles and refuelling stations are only as reliable as the support systems in place to service them.
Robust training programs: Equipping personnel with the necessary skills ensures safety and efficiency.
Clear and supportive regulations: A well-defined regulatory framework fosters confidence and standardization.
Government incentives can act as catalysts in this evolution; however, they should be strategically designed to promote sustainable growth, ensuring that support is temporary and directed toward applications where the use of alternative fuels has the most commercial value to its users.
While Nikola's challenges are evident, it's essential to recognize the broader context: the transition to alternative fuels is a complex journey, filled with both setbacks and advancements. Each experience, including Nikola's, offers invaluable lessons that refine our strategies and approaches.
Change Energy Engineering has found that many vehicle fleets can operate perfectly well on fuelling systems designed around lower pressures, which can make the transition to cleaner fuels much more cost-effective. For example, refuelling a Nikola truck with hydrogen gas at half the maximum pressure can cut costs by up to four times. The operating range is halved, of course, but this is more than enough for many fleets, especially those doing local work. By analyzing how vehicles will be used, we can identify the alternative fuel and refuelling solution that is optimal for the owner.
