Nikola’s energy president resigns

Carey Mendes has resigned from Nikola Corp. where he was president of energy. (Photo: Nikola)

Carey Mendes has resigned from Nikola Corp. the place he was president of vitality. (Picture: Nikola)

Carey Mendes, who led the branding of Nikola Corp.’s hydrogen enterprise and signed a deal to get financing for as much as 50 hydrogen fueling stations, has resigned from the electrical truck and hydrogen distribution developer.

The corporate introduced the departure in a one-sentence submitting with the Securities and Alternate Fee on Friday. Nikola didn’t publicly identify a successor.

Mendes turned president of vitality lower than a 12 months in the past. He joined the electrical truck and hydrogen distributor as the worldwide head of vitality finance in October 2021. He didn’t reply to a request for touch upon his resolution.

Throughout Mendes’ transient tenure, Nikola made a number of strikes within the hydrogen house. The biggest was a partnership with infrastructure startup Voltera Inc. to finance hydrogen up prime 50 fueling stations the place hydrogen-powered gas cell vehicles from Nikola and different gas cell vehicles might refill.

At $10 million to $20 million per station, the funding might quantity to as a lot as $1 billion.

To date, eight station areas in California are identified. Every is financially supported by the state of California because it pursues Gov. Gavin Newsom’s purpose of a clear and renewable hydrogen economic system.

Mendes additionally oversaw a yearlong effort to model Nikola’s fueling distribution as Hyla, introduced in January.

Partnerships drive Nikola’s hydrogen station buildout

Mendes instructed FreightWaves in an interview in Could that the price of growing hydrogen isn’t one thing Nikola might bear alone as a result of growing vehicles is so capital intensive.

“The infrastructure facet may be very accomplice based mostly,” stated Mendes, who spent almost 13 years at BP, the place a number of of his six roles concerned vitality buying and selling. BP and Nikola as soon as anticipated to accomplice on fueling stations. Nothing has developed.

“BP is a good revolutionary firm. They’re doing lots of stuff that’s very innovative within the house of electrification, hydrogen, renewables,” Mendes stated. “Firms like BP are actually trying to aggressively get into this market.”

Extra asset gross sales might lie forward

In July, Nikola bought its Phoenix Hydrogen Hub underneath improvement in Buckeye, Arizona, to Fortescue Future Industries for $24 million. Nikola can be a buyer for inexperienced hydrogen produced there. Fortescue and Nikola agreed in January to guage the co-development of large-scale U.S. inexperienced hydrogen manufacturing amenities.

However Nikola’s monetary pressures led it to money out of the mission, just like ending a producing three way partnership in Could with Iveco to construct electrical and hydrogen vehicles in Europe. Iveco has rebranded the vehicles and is transferring forward by itself, Nikola’s Tre fashions are based mostly on the Iveco S-Manner.

Nikola can promote new inventory to lift capital following a shareholders settlement earlier this month to double approved shares to 1.6 billion from 800 million. However the dilution of current buyers has contributed to a pullback in Nikola’s inventory worth (NASDAQ: NKLA). Shares closed Friday at $1.96 after touching $3.66 a share on Aug. 3.

“We have to increase extra capital right here. We’ve been up entrance about that,” CEO Steve Girsky instructed FreightWaves final week. “There’s dilutive and there’s non-dilutive methods. Non-dilutive methods are asset gross sales and stuff like that. There’s a few of that laying round right here.”

Repair for battery fires might are available October

Individually, Nikola’s recall of 209 Class 8 vehicles due to a suspected coolant leak within the battery that resulted in two fires might take a while to establish a repair.

In its submitting with the Nationwide Freeway Visitors Security Administration, Nikola stated it could inform prospects in regards to the challenge this month and observe up when it has an answer, anticipated in mid-October.

In the meantime, Nikola briefly halted deliveries of the Tre BEV (battery electrical automobile) till a repair is developed and corrected elements can be found. This can negatively impression Q3 income, which Nikola hoped to enhance by promoting down its backlog. The corporate estimated lower than 1% of recalled vehicles would expertise the situation.

Nikola’s gas cell electrical automobiles (FCEVs) went into manufacturing this month. They use a distinct battery and will not be concerned within the recall. Buyer deliveries are anticipated to start in This autumn.

Associated articles:

Nikola will get monetary accomplice for 50 hydrogen stations

In pivot to concentrate on gas cells at residence, Nikola cashes out of European JV

Nikola manufacturers hydrogen, begins filling Anheuser-Busch gas cell order

Click on for extra FreightWaves articles by Alan Adler.

The publish Nikola’s vitality president resigns appeared first on FreightWaves.

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