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Nikola Plans to Buy Cheap Power in Arizona to Make Hydrogen

  • Nikola’s stock rises on news of proposed deal with utility
  • Startup needs low-cost hydrogen for 700-station fuel network

Nikola Corp. headquarters in Phoenix, Arizona.

Photographer: Ash Ponders/Bloomberg
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Nikola Corp., a troubled electric-truck startup, plans to enter into an agreement with an Arizona utility to supply cheap electricity it needs to produce hydrogen for a planned fueling network.

The proposed contract between Nikola and Arizona Public Service Co., a unit of Pinnacle West Capital Corp., was disclosed in a Dec. 11 filing requesting approval from Arizona utility regulators.