Mack, International Buy Environmental Credits From Nikola
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Mack Trucks and International Motors were two of the three winners in an auction of environmental credits owned by bankrupt hydrogen fuel cell Class 8 truck maker Nikola, according to court documents.
Volvo Group subsidiary Mack won the lion’s share of the credits available in the court-sanctioned auctioned and will pay more than $15.3 million for its purchases.
Mack bought:
- 472,953 model year 2023 Environmental Protection Agency greenhouse gas credits for just more than $1.78 million at an average price of $3.77/unit.
- 1,125,673 model year 2024 EPA GHG credits for slightly less than $13.52 million at an average price of $12.01/unit.
- About 46.46 million model year 2023 National Highway Traffic Safety Administration fuel consumption credits for $232.30.
- Just under 110.58 million model year 2024 NHTSA FCC for $1,105.77.
- About 0.73 model year 2024 California Air Resources Board particulate matter credit for $81.03.
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International Motors and FCA U.S. submitted winning offers totaling $592,5004 in aggregate, according to filings with the U.S. Bankruptcy Court for the District of Delaware, with further details as yet unavailable. FCA is the North American subsidiary of automaker Stellantis, the parent company of light vehicle brands including Alfa Romeo, Citroen, Chrysler, Dodge, Fiat, Jeep, Opel, Peugeot, Ram and Vauxhall.
The three original equipment manufacturers emerged as the winning bidders after two auction rounds. Bidding took place between May 26-30.
International Motors and FCA U.S. submitted winning offers totaling $592,5004 in aggregate for Nikola environmental credits. (International Motors)
Before the auction, truck maker Paccar Inc. was designated as the stalking horse bidder for the credits. A stalking horse bid is an initial offer for assets, meaning it sets a bar other bidders cannot undercut.
Credits can be stockpiled through sales of trucks or light vehicles that exceed federal emissions limits. Low-emissions vehicle manufacturers like Nikola can generate credits, and rivals that either fail to meet targets or want to stockpile them for potential future needs can then buy them.
The bankruptcy court approved the bidding procedures and Amsterdam-based commodities broker STX Commodities’ role in running the auction on May 8.
STX Managing Partner Fabian Roobeek told the court that the company identified and contacted about 15 potential purchasers, including OEMs and environmental credit market participants, offering access to a virtual data room ahead of the auction.
A total of eight of those parties received access. STX then held follow-up discussions with interested parties.
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The first round resulted in bids from four OEMs and one financial investment firm, plus Paccar, which did not modify its bid in the first round even though it could have, the documents show.
After the first round, STX provided feedback to all bidders. Bidders were informed after the first round whether their bids were within 20% of the highest offer for some or all of the environmental credits.
Multiple bidders, including Paccar, upped their bids in terms of structure, quantity and price in the second round, Roobeek said in written testimony. Overall, the second round yielded an aggregate $3.4 million increase in the bids, he added.
A Volvo Group spokesman confirmed the Mack purchases and told Transport Topics the credits would be used by both Mack and sister company Volvo Trucks North America. International was not immediately available for comment on its purchase.
Mack offers two electric vehicles out of a lineup of nine trucks — the and MD Electric Classes 6 and 7 medium-duty truck.
Mack in April promised to launch an electric version of its recently unveiled flagship Class 8 on-highway tractor, the Pioneer. Cummins’ L9N natural gas engine is available in the Granite, TerraPro and LR models.
International offers one electric vehicle out of a lineup of 11 trucks: the eMV Classes 6 and 7 medium-duty truck. International’s IC Bus unit offers an Electric CE Series school bus.
RELATED: Traton Maintains Battery-Electric Decarbonization Focus
Traton Group subsidiary International in April unveiled plans for a battery-electric version of its RH regional-haul tractor. Serial production of the eRH is set to begin in 2026.
Concurrently to the sale of the credits, Nikola’s administrators continued to market the company’s intellectual property and physical inventory.
Visits to Nikola’s Phoenix and Coolidge, Ariz., plus Fontana, Calif., sites to scope out the physical inventory began earlier in June, Vince Lorenz, Nations Capital director of fleet and valuations, told Transport Topics in an exclusive interview.
Nations Capital and parent company Gordon Brothers are running the sale on behalf of the Nikola estate. Trucks, manufacturing equipment and the Hyla hydrogen refueling rolling stock are among the assets up for grabs. The majority of assets are stored at the Coolidge manufacturing plant, including 103 new Class 8 hydrogen fuel cell Tre trucks.
The Hyla assets include six mobile refuelers and six hydrogen hauling trailers, one of which is for liquid hydrogen, with the other five for gaseous hydrogen.
Judge Thomas Horan on June 17 approved plans to employ Hilco Streambank to help sell the “intangible assets,” or IP.
Among the Nikola IP up for sale are patents, proprietary truck management software, trade secrets, designs, research and development data, trademarks, customer data and license agreements.
Nikola filed for court protection on Feb. 19.
The company’s Coolidge factory and Phoenix headquarters were sold to electric passenger car maker Lucid in April.
Court documents show Lucid paid $30 million for the 691,000-square-foot retooled manufacturing plant and offices.
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