Nikola's Chapter 11 bankruptcy protection announcement earlier this week came as no surprise for a majority of industry watchers. It was a long time coming.
[Related: Nikola Motors, once a Wall Street darling, files for bankruptcy]
Over the past several months, the Phoenix, Arizona-based manufacturer of hydrogen fuel cell (FCEV) and battery-electric Class 8 semis has struggled to stay afloat for many reasons, with the high cost of hydrogen fuel and the accompanying infrastructure being the main culprits.
Nikola is not the only big rig hydrogen company to go under recently.
Earlier this month, Hyzon Motors, also a one-time rising star in the FCEV market, confirmed that its CEO departed as shareholders voted to dissolve the company. Quantron, a German zero-emissions FCEV truck manufacturer, filed for bankruptcy last October.
Does this signify the end of hydrogen-fueled long-haul, heavy-duty semis? Impossible to say right now but it's becoming more apparent that battery-electric is the preferred powertrain technology in the quest to eventually replace diesel and other fossil fuels like compressed natural gas (CNG) and renewable natural gas (RNG).
Nikola customers who spoke to Clean Trucking remain committed but questions remain about what's going to happen in the long term, such as the operational status of Nikola's HYLA brand, which provides modular hydrogen re-fueling stations.
Customer reactions
"It is a sad day for the zero emissions movement that is committed to moving away from fossil fuels," said William Hall, manager of San Francisco Bay Area Coyote Container, who purchased the first Nikola Tre semi in California. "There was a strong backbone formed out of the Nikola product line and early adopters. I can see this continuing to move forward."
Hall previously told Clean Trucking about his Nikola experiences, good and bad. Despite everything, he remains a believer in hydrogen and intends to continue using his rig.
Jim Gillis, Pacific region president of drayage firm IMC Logistics, which has the largest deployment of Nikola FCEVs in the country, confirmed there has been "No operational shutdown yet. We've been assured [by Nikola] of continued service, warranty, and fueling while they continue to search for partners to purchase assets and continue business."
What happens next
Nikola confirmed in its bankruptcy announcement ongoing plans to sell off assets, or at least portions. The process is already underway with Mullen Automotive, which struck a deal earlier this month to purchase Nikola's battery line equipment. Along with the Tre FCEV semi, Nikola also sells battery-electric version, the BEV 2.0, whose predecessor was recalled due to battery fire concerns.
[Related: Struggling Nikola sells battery assets to Mullen Automotive]
Parts of Nikola's remnants still have value, even if the company as a whole has proven otherwise.
"They will likely get bought by Hyundai," predicts Matt Schrap, CEO of Harbor Trucking Association. "[But] the problem is fuel cost. Depending on where it comes from it could be as high as $30 per kg. It's a setback but not the death knell."
A California dealership source offers a more grim assessment.
"From what I have seen... it seems there will be no dealer network in their restructuring plans."
Nikola did not respond to a request for comment.
Hydrogen's future
With the downfall of Hyzon, Quantron, and now Nikola, the future of hydrogen as a fuel for long-haul commercial trucks is in doubt.
This does not mean the end of the hydrogen industry, however.
"The hydrogen industry holds tremendous potential as a key driver of the clean energy transition," stresses Roxana Bekemohammadi, founder and executive director of the United States Hydrogen Alliance. "However, recent instability in the marketplace is creating significant challenges for the sector. Unpredictable market conditions, lack of regulatory certainty, and inconsistent policies are undermining investor confidence and slowing progress."
Lessons will hopefully be learned about what worked and what did not in order to pave a path forward for both Nikola and the hydrogen industry at large.
"The recent bankruptcy of Nikola highlights how these uncertainties can impact players in the hydrogen space; their announcement serves as a cautionary example of the risks posed by a lack of clear and supportive policies for hydrogen innovation," Bekemohammadi concluded.
