Indonesia Receives U.S. Funding to Reduce Coal Usage and, New Electrolyzer Plant Being Constructed by Cummins in Spain

Biden, Jokowi Unveil USD 20bn Deal to End Coal in Indonesia

Market Impact Factor: High

Shahzain Ahmed?| Junior Analyst – Power Grid

As part of the Just Energy Transition Partnership (JET-P), Indonesia has obtained at least USD 20bn in funding commitments to help the country increase its use of renewable energy and reduce its reliance on coal, to speed up its clean energy transition and move forward its net zero carbon pledge by 10 years. (2060 to 2050).

Participating governments, the United States, Japan, Canada, Denmark, the European Union, France, Germany, Italy, Norway, and the United Kingdom, are to provide a total of about $10 billion in concessionary lending, grants, and equity, while major private global financial institutions that earlier pledged to support climate investment will arrange the rest.

The partnership aims to help Indonesia reach its total power sector emissions peak by 2030, seven years earlier than currently projected, and cap carbon dioxide emissions at 290 megatonnes by that year, which would be down from a baseline value of 357 megatonnes. JET-P also seeks to accelerate the deployment of renewable energy so it will make up 34% of Indonesia's total power generation by 2030 (from the current share of 11%). The financing support is expected to help Indonesia reach its net zero emissions target by 2050, a decade earlier than the 2060 goal. The Indonesian deal is the biggest so far, reflecting the nation’s heavy reliance on coal. Indonesia is the world’s third-largest producer of coal and the average age of its coal power plants is only 12 or 13 years old. (generally, run for 45 years)

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Nikola Will Miss its Truck’s Annual Delivery Target

Market Impact Factor: High

Amna Mumtaz?| Junior Analyst – E-mobility

Nikola will miss its goal of delivering at least 300 BEV Tre trucks this year. The company expected to deliver between 300 and 500 battery-electric trucks this year, capitalizing on a shift to electric trucks by logistics companies seeking to reduce ownership costs while meeting sustainability goals. The company has delivered 111 trucks and produced 125 units. It produced 75 battery electric trucks in the third quarter but only delivered 63 units. Nikola Motor produced 50 Tre BEV trucks in the second quarter and delivered 48 of them to its dealers.

The company does not intend to issue new fourth-quarter and year-end forecasts. Nikola has only achieved 41.6 percent of its annual target after three quarters of the year. The sales figures from the quarterly report are currently insignificant. The revenue generated by the 48 trucks delivered and four cargo trailer units was $18.1 million US dollars. The two Tre BEVs that were already manufactured in Q2 were delivered in the first week of July and are thus included in the Q3 results. Nikola reported $24.2 million in revenue in the third quarter and an adjusted loss of 28 cents per share, which was less than expected.

The company also provided a brief update on the Nikola Tre’s fuel cell version in the release that the test drives with TTSI have continued, and Walmart has received the first Tre FCEV for pilot testing. In Q3, six beta trucks were completed. Development testing on beta trucks has begun in several locations. By the end of Q4, Nikola expects to have completed 17 beta trucks for the entire year. Furthermore, Nikola anticipates completing the Phase 2 expansion of its Arizona plant in the first quarter of 2023. The company would then have a production capacity of 20,000 vehicles per year.

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Cummins Set to Commence Construction of 500 MW Electrolyzer Plant in Spain

Market Impact Factor: Medium

Jannat Wasif | Junior Analyst – Hydrogen

Cummins is all set to start the construction of its new gigawatt electrolyzer manufacturing plant in Guadalajara, Spain, which reaffirms the company’s commitment to expanding the green hydrogen economy in Europe and globally. Spain was selected last year as the optimal site of a new proton exchange membrane (PEM) electrolyzer plant. Earlier this year, the company purchased more than 530,000 sq. ft. of land in the industrial area of Guadalajara, Castilla-La Mancha, where it is now preparing to commence the construction of this plant which, is expected to become operational in 2023. The facility will have the capacity to produce 500 MW of electrolyzers per year, scalable to more than 1 GW per year. It will initially create 150 jobs, with the potential to add another 200 jobs as production continues to grow. With the support of the Spanish government and the European Union, Spain’s hydrogen market has great potential due to which Cummins is investing in this country. This facility will enable Cummins to help European customers transition their energy supply and meet ambitious sustainability goals as well as contribute towards achieving the company’s own carbon neutrality targets. By contributing towards meeting the demand for hydrogen generation technology, this facility will help in accelerating the role of hydrogen as a viable alternative energy source in Europe.

The company has also recently announced plans to establish a 500 MW electrolyzer factory in Minnesota, US, as well as expand the capacity of its electrolyzer plant in Belgium to 1GW. Cummins has been a part of many of the world’s hydrogen “firsts” and has deployed more than 600 electrolyzers in 100 countries globally up till now.

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