FX.co ★ Nel Realigns Relationship With Nikola

Nel ASA and Nikola (NKLA) have revised their former contract, marking Nel as the provider of an 80 MW electrolyzer for Fortescue, a deal estimated around $20 million.

The initial agreement between Nel and Nikola, started in 2018 and later supported by a purchase order for 85 MW of electrolyzer machinery in 2020, has been dissolved. Both corporations mutually decided to nullify the current contract in favor of a fresh arrangement revolving around 110 alkaline stacks and related Balance of Stack equipment. In exchange for this change in plan, Nel is set to receive approximately $9 million.

Simultaneously, 80 MW of electrolyzer machinery, originally provided by Nel to Nikola, will be integrated as a part of Fortescue's acquisition of Nikola's Phoenix Hydrogen Hub. For the modifications in provisions and guarantees involving the equipment, alongside changes in the delivery scope, Nel stands to receive around $11 million from Fortescue.