Benzinga | Apr 14, 2021 02:23PM EDT

Nikola, Iveco, OGE Ink Fuel-Cell Hydrogen Distribution Agreement

* Electric and hydrogen vehicle producer Nikola Corp (NASDAQ: NKLA), truck manufacturer Iveco, and German gas network operator OGE inked a preliminary agreement to back hydrogen distribution for fuel-cell electric vehicle (FCEV) refueling, Reuters reports.

* Nikola will lead the installation of hydrogen fueling locations for FCEVs, OGE's hydrogen delivery systems support.

* The financial terms of the arrangement were not disclosed.

* OGE owned and operated 12,000 kilometers of natural gas pipeline infrastructure network in Germany.

* Nikola and Italian-American vehicle maker CNH Industrial NV (NYSE: CNHI) unit Iveco are joint venture partners for a battery-electric and hydrogen heavy truck production project. CHN Industrial owned a 7.11% stake in Nikola via Iveco. The sample building of their Nikola Tre FCEV truck is set to begin in 2021.

* The testing and validation are estimated to continue till 2022. The production is expected to start in the second half of 2023.

* Price action: NKLA shares traded lower by 1.83% at $11.83 on the last check Wednesday.