Plug Power (PLUG) 6 Aug 212021 Q2 Earnings call transcript

Greetings, and welcome to the Plug Power Second Quarter 2021 Earnings Conference. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Teal Hoyos, Director of Marketing Communications. you. Thank

begin. may You

our to be include second We statements forward-looking future these or of Welcome forward-looking state This We information. contain update call our intend of Section operations Section the Securities of XXXX. Act will covered by for statements. statements that results position the provisions you. Act or of Harbor quarter believe the other forward- looking Exchange to XXXX important XXA our XXXX and forward-looking call. XXE projections financial is the Safe Thank statements of These Securities forward-looking contained investors. to in expectations future it of of communicate to

this I over results call not undertake would as after other December call CEO, turn made or this and read intend cautioned to forward-looking However, with discussed we that future do fiscal forward-looking unduly factors, as the of the year risks and results statements as performance discussed Power’s our not to or Andy from which on or statements materially results. any to be to result new actual are subject looking cause statements as in rely the speak Risk reports uncertainties Factors for on a XX, like those information. to we and of time well to annual to, investors limited update only the a of to risks Such not in Plug forward- Marsh. ending guarantee report from various such are or as Form statements statements perform and are filed These XXXX could time Item but XA XX-K SEC. as At not statements of under point, differ the day uncertainties should including,

and call you, for our everyone attending today. you for Thank Teal thank

versus challenges We market XX% for by Revenue hydrogen had vehicles was are of vehicles successes with quarter. short JV. the easy construction be the a Products had two There are in closed replaced versus have and of with off. The cost the targeting with We expected dramatically costs successes in due with prior rattle This thirds with bending for relationship did costs. some pricing the of year, the force is new on hydrogen increase the GenDrive majeure. two to our HYVIA to quarter shipment Air the quarter increased of the impact cost Renault, XXX,XXX dramatically to major captured and in drivers, over There hydrogen year. market products. the the a their units are the JV increase of liquid This prior mixture challenges. XX% associated This by in over York. about is the tanks. market in New also This light a crisis XXXX, availability commercial site term

We important? hydrogen going U.S. really This Force due Plug event. months Why hydrogen impacted our majeure the major Southeast. made throughout two to customers the in Power sure network. think have I plant down local this had hydrogen was for a disruption is

sites not and me any were gas have making flexibility customers. changes and duplicated. our in near Bureaucratic giving cost event sure corrective now briefly our industrial greater onetime solutions also won't our We're owned equipment midterm Let we companies, us talk and hydrogen a actions. now be by effective about of for stranglehold customers having

in get And the folks, issues green capacity early sites and already In event. feel in day, sites XX Plug And hydrogen July just to the of online online capacity. announced a remind day capacity at moment. force additional which tonnes we people hydrogen our XXXX in Linde tonnes tonnes Second, we've unprecedented across was future an just use our will quarter additional third XXXX. week an of about own October additional in partner, brought by Tennessee hydrogen XX Pennsylvania, York, Georgia one the by and also and over the to New increase per the plant. site and Georgia we additional board for over site, line our XX of was We're ground majeure hydrogen in New to tons plants this X.X broke will This in our Texas. U.S. world. is York will an be Texas the XX% increasing have green Power alleviate in largest

count near Somebody from asked, will our the hydrogen the majeure? challenges believe off force why did our pay fill on the on will can We in can absorb the available, plants. We to count customers in critical They know in today importantly, more in customers near your and Plug needs. of us the be up new Power they be meeting protecting costs our term, term. helping want the we market

We're exciting the be billings over our gross guidance quarters. an $XXX numbers. from we'll gross have to means XX% coming XXXX increasing our XXXX This up in our million. news coming We in by increasing billing

as hydrogen Peninsula. agreements We electrolyzers largest our build take liquid of the one with XXX out quite bookings in plants. XX the it details shipping making our on to And We'll of be also giga of are for our hydrogen the new megawatts megawatts XXX makes the producer Acciona, be second final hydrogen to with for We're the capacity We're in in with will will Europe. targeting Iberian JV liquid announcements in XXXX, factory. additional We XXX of off of also close of relationship JV excited. with both plan us closing really SK planned. this quarter tonnes of working Acciona half

Finally, really important. is this and

incredibly factory Dave the who hired utilizing and our state the manufacturing excited Third the become giga holding design on to why leader. Annual Plug of about of in leader new fuel XX. That's capabilities, October be With we sales equipment future. automated only ran We're factory, a and We'll unprecedented cells giga we're our our match remain news the a in Mindrich, Tesla art manufacturing electrolyzers playing but Power Symposium devices, We not processes. Nevada. global manufacturing in and in

We’re moving because in a recent cases. uptick to the event of virtual COVID

You'll up expect event and next once to online the an there to great. we show I pandemic yesterday. spring week to in-person see our we in a be in was It's sign have just Rochester. able off facility

building our questions. ready I'm renewable for to to this And quarter efforts business, New career years. I'll join business. Sanjay now operating hydrogen a sure a six that Crespo has stationary we're the in vehicles. men XX only business would material is COO their and handling speak led as like join The with Middleton. HYVIA They're general Keith U.S. and been Plug marvelous half seven That different now Sanjay with years And our as idea Only done Paul many, you business focused now ran the many I've include lead job head on-road well has Keith businesses. is closing Schmid, for years. Finally, has our for of Shrestha of as Keith for Quarterly, energy long to We're the with gap. the business. me with years, running managers to worked call. CFO for take analysts on know, four our Keith energy our and asked Markets. them sales running them. one electrolyzer our Jose up And ask

Thank Colin this first proceed session. conducting you. from At be time, with Please Our question. question-and-answer [Operator with question a we'll Instructions] Oppenheimer. comes Rusch your

your to I in would customers customer But rates and of give What activity, what you guys. on forward? us order the sort of revenue at guide the the ‘XX comfort much, love beyond? go what's growth this in Well done in here. understand of terms higher size so as laying growth that conversion Thanks foundation on What some is you into more and with trajectory detail, going on are we continued point? to terms point would

Yeah.

So That's in-house we've beginning really we I'm here me let to August. and million as sitting the first you of a $XXX Colin for it's back. shipping know, unprecedent. have committed And this year. step take --

next with million. feel incredibly the comfortable For we year, $XXX

handling, number have we I electrolyzer to the grow. and million and to potential. continue business expect $XXX be Now, year million. expect that up energy great material this I markets new go that. be the And expect to And business $XXX will

this should be Before we this call and up whether for call, I had for Sanjay about talk long guidance today. XXXX and

be this significantly and have new bigger on symposium I can XXXX lay you'll how and plan see us We October think new in XX. out business the insight XXXX. into And some a

of those suppliers that Okay, then made around designs, the qualification with really the partners. thanks X to your you’ve the and much And follow in ability for and up up progress of of some finishing terms building Class your start is on truck, so things that.

event, next light commercial not Yeah. done in-person do are to line in will the we're that where for vehicles. progressing. significant the I've going vehicles we've for vehicle Colin, some having Unfortunately, year we we remaining have things seen for JV. to expect our there, X that in we're both an We're show Class off. the vehicles on-road XX pilots

Symposium. certainly Plug mention And important, more more think, probably didn't the be six that hearing think I that about lot I about model in at opening for think the duty vehicle heavy in you'll and my I But are remarks. certainly coming I trucks. months, we the Power in a discussions

so Thanks Perfect. guys. much,

you, to talking Good Colin.

Thank you.

with Citi. with Juvekar Please your question. proceed next comes Our from question PJ

Yes. be your on Hi, good Good call. morning. to

Good afternoon, PJ.

It's to So I this in know the to we you. talk wonderful usually do morning.

that some build you cost your to you customers pass Andy. throughs Good into contracts? you, to built cost talk future I your your absorb hydrogen for to cost But have network, hydrogen this would as quarter. have out you understand

I this Sanjay let take Sanjay, every will day. this that. and run you do know I

you. are a of thank And PJ, that. points. So how do PJ couple to Happy Sure. Hey, you?

industry making thinking building the green network, hydrogen, generation to this, of so two, Our can an event you as for another Power in because Number the how as like of tackle entire green not way as majeure hydrogen economical industry, for goal well about that we're about Plug our number customers. disruption any majeure we're really the is as as shut really down force is force and hydrogen think one. the hydrogen green this big plant

will, with in goal like the so price right. price, the word. we to for So But opportunistic, driving to if we're is can. our be of as a our goal application and this disruption to that. time cost we keep being as that sure looking of is more you we're frankly, a not up down, the really is make to take If view lack hike more a transparent situation industry, the better it, hydrogen Look, there of way the deal is looking at opens up and

that sure we're the we're approach the not we that's taking. to how profit of we're opportunity. So maximizing really That's And it. looking make about sort think

And really road, as we're importantly, becomes paying we we those course, that more to it past, focusing along about right more long same green where we right. today. we unconcerned make the online, Of for and have are really lines. the think That's profile PJ. having more grey looking of customers again, the and price about want built make vehicle key things this, return hydrogen this are that the ecosystem how come folks they're the into And like get hydrogen at have set more to middle sure ubiquitous, mile end our one things hydrogen build about that sure apps we in and

going network, you you. cost out closer hydrogen everywhere. new Thank up get Sanjay. And is Great, to as of construction building your

you. do a gross given you you hydrogen as handle all fuel So power your that that, highlighted your sticking on And green targets still you costs? as your are costs, margin for Thank well to building before? have good

too? to one, Sanjay, take you want that

Happy to that. Sure, do Andy.

So PJ, into parts. break let me two that

question we First can of that where where lot component, front. partners anything, we're expansion to a lock more an see absolutely continuously that. is with potential? part change of that looking sources we're well was the location in the working as is so apps, why there power is to which on no If as different there available attractive else And

prices cost, to we higher marginally commodity going of the minuses. bring than time, a you that doing molecule. concerned Now think being excellent and maybe And, cost small big like about relatively projects Look, when the when point, you're an is that's point always we potentially costs of hydrogen But at you thought. component up. are EPC some be still and are is what this, which up the component this CapEx pluses electricity. variable kilogram in total for about is biggest cost given green there's

any prices, our commodity as to if targets. given cost as don't to even changes some about we So from see were really the there to what escalation, labor talked margin what's well target be prices, happening we've

along. you. I'll thank pass Great,

PJ. you, Thank

Thank you.

Our next Please question. proceed Evercore ISI. comes your West with with from question James

Hey, good afternoon, guys.

are you how James, today? Hey,

and I'm confidence like targeting you well. other more doing centers? been year your that well. by are in then you're of in base in confidence you've data it sounds Or increased -- businesses as next gains driven guidance, missile handling Andy. your areas raising momentum Andy, Is some getting more increase the you materials momentum? like

Yeah.

me performance the answer do the probably fair handling I of tell, We'll actually let to is a confidence my before. just for give seen with let good year has rates James we've deal increased say. business, continuous the grow think yes. me continue material our next of So with it's which to to you

we've now two least of we at our expected And million year. business, $XX pointed year. only David be give run me, In [Indiscernible] pedestal I believe about who next And We seven that's no this a business. a you booked days, mean, in have to of stepped The pedestal electrolyzer Europe electrolyzer XXXX in will customers, Jose years that, just $XXX I had seven in five ago, Crespo now to feel ten and talking we to start spent next days two. business accomplishment. already with out just number two for huge to I pedestal I Bow, customers. for worth million we year. customers

huge on gives more And just you some feel. that we're So projects. a rather working

touch advantage, the I activities actually factory unique a that even can for centers. I data market, market. stationary a think we look provides that James versus now I market. folks, that the the at funnels needed versus One in the competition. And us is of other pace, have, we which stacks stationary make on have is we at didn't And and advantage and the It no, have

the site. you, And at with about, be bringing the also to I never to to we're counterintuitive one XXX seeing getting now. me that but year, two They really some sites. hydrogen are What which deployed or units difficulty And tell First of other folks of markets, in we I California, limits thought of these issues will first this of the law can be have having found our the hydrogen which EVs for electricity is million the issues of stationary business grid. is run to to -- actually $XX on been present which big citing with We end we'd because EV actually And and some engine. providing there's building. the the power some how material deploying they're you fruit handling do can our stationary and diesel see -- because products and have those just year EV at kind there. next hanging could customers applications products low in about talking their million to probably vehicles counterintuitive. we we $XX the And power the customers five long in ways backup

we of I production? it think your up kind consistently, basically just sense. online, should you takeoff me those the up have your how start well of Congratulations on as the follow you'll before? think So hear about bring guess, Make Right. on coming online? production pace do for And you before about as you on sold them green hydrogen we be that. come agreements? Maybe actually most hydrogen of Should

that Sanjay, will I let one. you take

Yeah.

cost our make This time, a James, renewable is plant budget, time year. mentioned, summer sure ground more the lot liquid something hydrogen How schedule? this be So do stay as things right Now lock by by lot So molecule, now. it's Because a the part obviously, actually with our now the are hey, on plant Georgia on hydrogen sites, will Andy reality. and priority We that's these on great of becoming first in next just you focus. green tonne the get that to you XX how the was then year, which spending of broke you? done end gas of the in plant initial green been question. sources, we're of plant, gas

on. lot obviously, lot of have we forward providing at those updates, discussions a symposium. we So, look a our obviously more to upcoming going And

the is as So follows. about way this we're thinking

hydrogen to is really you this right. benefit green our work, expand hiders, or of customers more applications is number two, getting make that goal the pie not to market one. Number Our the go sure our the that We're are goal bigger. so pie the looking to becomes existing if after

that sure gets make really to is pie bigger. goal the Our

have that's consume truck, For hydrogen material day. kilograms of consumes day, example, you James, to kilogram of a handling a going one hydrogen X XX Class if

XX,XXX, have merchant We're tonnes tackle hydrogen hydrogen XXX in you per demand not to Class issue stationary tonnes the X need topic, have that opportunity. Today, from liquid XXX to incremental day that of you mention going the to capacity. day data If you're U.S. center trying that XXX trucks, and per capacity to fact

So see as going plants next quarter plants in online the are of two. of over XXXX. year, as we start we'll go a get next this by the you to share lot or to loaded to more to year,QX of us forward And will start this next QX come have summer

Andy. Okay, got it. Thanks, Sanjay. Great. Thanks,

James. Thanks,

you. Thank

comes next with Please ROTH your Craig Irwin question. Partners. Our with Capital proceed question from

and Good questions. taking my thanks for evening,

Craig. How you? Good are evening,

more manufacturing is just bit not And technology, giga technology the -- just building. to an innovation the to then technology. I'm systems, the that you're of on This you were This by really great. Congratulations on in well. an there substitution job the nice good your traction. guide. evolution as did the impeccable I let's side, factory there see in say really a on revenue out engineering was little working on product. you Albany, be when many a ago, cost remember going Andy, It's of years

Can holistic term more unlocking maybe help at material us the facility you production margins this very potential cost should electrolyzer too? approach. you we say, Are a understand company? out key is system overall improvement to economics? see on of longer cost that there and looking stack something production it's the Is in So of I the down

the plates the think us pass down in that say and I at to I look drive of -- off Dave Craig, When I to whole on for look [ph], fact that when I stamp electrolyzers from you at wet you going from I'm process to And help costs. factory changing head. significantly automate for MEAs, we at hit [ph], manufacturing stacks, -- it changes brought the a cost how the a going manufacture I to by we're step metal look we're moving when see dry in cost. our to from a dry

think work, so do I in cost more. XX%. So, before and probably other the Laytham much Craig. about you're there's But factory, we typical think drop of thinking still We've frock I our sort been

of drive make for giga better. a down process. about service the material kind this on I at quality We're changer at our the of and costs. the make call, systems will tracing and that both and of costs, giga opened our it of top is factory on not there I manufacturing, it's and watching improving sure areas will the at sorts looking think only be predictability One better factory going everything, game And our -- yesterday, to Laytham. we're I better and talked all was in construction I our

Excellent.

as ready experience seems to years. market, commitments you it's question you I potential you you've Can to engineering about close to this this plans? heavy-duty there's not us? is well. build that be scope or guess, many can is systems talk misperception now scope I a the talking you prototypes as that's base of about action. for or guess is out digits or much us? mini And evaluate, unless been for vehicles, out test customers either There single several you've up follow a on how my maybe for customers away. know talk or Roughly, part supplied for unusual potentially something know, together So there Are I the about you're two to buses, to to out been business maybe already that I But evaluated and jeep trucks developed? individual market years around and customers. wider to can for stacks talking wouldn't bench be about there we put material

-- is I And experience at say Craig the building we've we're would HYVIA vehicles wider. JV. built look, our already

tied as vehicles. then. able a I up And put But priority yeah, beyond at activity be you activities have, about questions going presentation the I even month do the which answer the can product rather it's based and completely use we're at we it, have really that it, we bus, vehicles. expand see everything our And say You van look giving a expect look We in to sure the we as I we which a is -- which right. you real it do And it, quite try product we doing it's DAE like deal. be know, will the probably too. in nice the commercial better lower -- long-term. make I'll master And, I'll could rapidly honest stationary and coming I'm on but I think I vehicles next on have have, significant your about trials what's with activity. phrase with

When at little. numbers, look And numbers, look I Toyota love we’re when a goes a with from well up think after away, to it’s of you dice system, here I'd our and show we And COVID a a down we and So Honda's come it module. Delta the look think have we at up kilowatt kind positioned. it's best virus of look after in at this think XXX performance I really the not Craig, And density we industry. view, module. point it's that just

on Hey, congratulations fun. progress. like Sounds the

Greg. Thanks,

you. Thank

from question. question your Please with proceed comes next Craig-Hallum. with Eric Our Stine

on Great. Aaron questions. Spychalla for Thanks the for It’s Eric. taking

Hey, Aaron, how are you?

in for the of bit can being customers, still on with over an you've back fifth customers? then the is maybe that and it talk pending you Doing process talked the you customer kind good. Thanks, of on give Maybe $XX well, potential of just half? us as bit a there? ahead update to that about thought And And three customers. pedestal timeline. Europe you of on auto Andy. about million other little kind congrats switching a Can the little first But touched maybe

Sure. Good Aaron. question,

pedestal the in half, world. the the sites In expect around for well customers So they're going way, XX targeting, commitment around off roll identified. to factories second here. Aaron. with we have really a that the already, big to by XXXX been a it you're their And XX and over Europe, we're get scoop making And

road there's putting we're target. square to the material effective facility where vehicle. support in provide able I that's in customers but where that network. and putting in fleet, those XX in than usually people tonnes doing only Europe, in could in Spain, handling Spain, goods the cost perform do By to them because convince before, valuable. Europe know Plug others for work. we also better handling that Power, with The about closely and with we'll be not to to final that that handling -- a as faster. value really COVID material more for spoken we on have the people for do capacity see is levels move the that during Germany, stocking Now stationary activity we're will customers that's is can products, as XX,XXX their less they they hydrogen, Dusseldorf, Acciona assembly well sites customers which proposition And of we'll equipment over not how at really have have feet material tied And through

individual as the group, to a all trying and sell as really an we're So package activities not item.

the interesting. really Yeah, thanks Great, that's color. for

into for we good me, on a size little pipeline? some year, you give you on? us question of Just you’re XX of on the electrolyzer day seeing on gave the are the deployments, as of out more You bringing next that trip side, there? news kind what kind detail can had on look just really you given Second the bit capacity

can a funnel And $X year have numbers based billion today out electrolyzers. that. see, on We you put for that exceeds modest relatively I next for as

-- that $XXX are as We are a which are in with which somewhere in customers you one that, million $XXX million for give large just X to And sites range. the project as large negotiations to plants, would gigawatt. be feel as looking

really men now huge, a there Bow is both established [Indiscernible] work with and from strong not So team to leadership there we've exploit are to really market And, huge David exploit opportunity. -- use good that the Asia. we Korea well engage really working market. the and and have SK as Europe, world, with across South real And the word as U.S. folks sales in for

O'Connell, using there. we activity team Keith leveraged can footprint people really have over what I We And remarkable out put that think going a and Schmid factory, actually effort. The with the that global that Oceana. can like Dan be is sales thing that's on really, stacks really this equipment, It's have over fact in -- how hydrogen the is over done we a sit again. about giga designed with and same a we've - the setup. methodology just We There's XXX plant. the build thought team pieces about and and the he's again. that. really how It's plants Sanjay over The larger is of a designed can unique the there modular smaller a I view

opportunities. thanks on for best on great, exciting all call Great, the of the luck

Aaron. Thanks,

Instructions] [Operator proceed from with question Amit your Our with you. next Wainwright. H.C. comes Please Thank question. Dayal

Thank everyone. you. Good afternoon,

Good How you? afternoon, are Amit.

great the I'm cost. color Andy, on good,

assume of with we gross bottom the losses Can to et we challenges, in see cetera. the with was one Just forward? and sort respect margin XQ the that question improvements going

that was the challenge. really, let since to Sure. that Sanjay I'm going take to

Sanjay, that? to you So want go through

you? as -- as he So That's shareholder transitioning. think here pretty Hey, obviously about expect two-thirds happened year question alluded what Amit you talked as really hydrogen do the was But First, should from a improve obviously, all we're industrial in of opening step was take we Andy from QX? how as are of transition the details as cost provided as our in is air QX. and gas molecule XXXX. remarks, hydrogen substantial products go in letter, Andy Amit, Yeah. That and company. your that. we trend back Happy his almost that Linde to sourcing a our yes, to let's through in and the really answer short increased in to of well mentioned, about, cost margin into from terms to we the one, the

Andy, money companies, that Because top is focus, had crawlers Second top months, pick That two down existing our happen any did partner, of the as minimal. where that up we what, a had support that ourselves almost from where many more And where prices. end hydrogen to our one but our customer every industrial is but the on very to top thing at guess went plant that priority. unprecedented actually had as sure our us And of you've disruption cost to was these make was go to importantly not higher event pressure even disruption we any heard we from very, that customer. tube then times high mobilize location other obsessed well. for gas our

of factors. sort you margin at these QX impact, multiple of a was really and when it So look our

continued? majeure all That's from One tonne force of for Essentially, of destructed this obviously had XX these two perspective, long a stayed back how we've how come was almost that industry that down plant and unprecedented the online. months. event capacity, almost

the XX plants that of tons see past Texas, will customer and hydrogen green our come that obviously market. industry, Plug talked capacity about, and in Power entire helps And numbers well. that we've has you help added normally, over our will as which Linde as the Now obviously the online

Amit again QX hopefully half second yes, this year, trend majeure answer here. of question, marks to really of improve. see the And think short any in short should force major we the your I the bottom to So

really now, see a here of commercialize good everything. you That's care for priority of guys was big to as customers. sort taking you It right

So to that's know. good

for we Sunday Just versus me, directly one parity? green more How are for you. hydrogen question from maybe gray away far

keep green we're the The XX When gray later. today. But plan We way come later, have margin the our market hydrogen improvement the hydrogen, about to our Amit, price us have still customers green today, online title not of today. to meaningful hydrogen, sell paying hydrogen five parity with many see at gate, in green add hydrogen Out the It's it, we're when of strictly in summer our in you we about pretty liquid say heard for not talk things are you've XXXX. it's gray years hydrogen that we liquid hydrogen, you to, time. that profile. this hydrogen when and context. it's talking first plant see the same will years referring in

gaseous then So we're a with think gray you start with green hydrogen. hydrogen, for compare to if have gaseous hydrogen, liquid liquid comparing great to And hydrogen. that green you hydrogen about the

and the here, I viewpoint, our is from make thereafter. make the that's it's middle but with And out the competitive now. keep we cost in improvements sure XXXX our gate time will gray So think that's of green, starting goal down price to to go making continue hydrogen is of ubiquitous hydrogen

so much, you Thank it. it. guys. Appreciate Got

know, all long-term low to parity cost team Amit, done in the that comes it will has feedstock. work be term. near think hydrogen reason gray is And down as on that hydrogen procure PPAs with is I to the the really Sanjay the you really green

what's is really the comes it down of the So cost to feedstock.

Andy. you, Thank

you. Thank

question. Chris Our B. next with Riley. question proceed comes your with from Souther Please

repeat Hey, about continue something last my additional quarter. to here. If fuel go talked one until internal that here. online? to huge a step get kind out costs, in the that come quarters to just here for you your Is starting of that anything incremental million there be the the on you And guys. Maybe mid-teens. question margins costs that in that incremental in would we would obviously next $XX couple one fuel taking back Thanks costs, supply

So before the internal curious kind good I'm online? just margins can of we capacity comes get how those

Yeah, answer Sanjay? to it. going from Chris, let good But you, hear Sanjay I'm Chris. it's

Thank you? you, Andy. Hey, are a Chris, So how of couple things.

repeat this in the quarter. one. have transition we third Obviously, what itself. associated not Obviously, from not the air would away right. would You're to costs happened with products that certainly and That's of

and with is -- expect Second -- have from Linde. the strong item fully very here price obviously a our look hydrogen we we of relationship

with supply them X hydrogen. variety different them We working beyond have Class on do the are even a and vehicles of do things provide as We a of the partnership vehicle. as Class with X well

to in to constant hydrogen dialogue the the down can obviously end a of continue so can drive we to propel So see markets. we how we continue cost multiple that are of growth

also So by October, the you that of that goes capacity in X.X should be from know will that an incremental positive from the perspective. cost XX to overall end as day our a well. On help Tennessee top tonnes of

there peak price in this handicap direction One year. could as the is that of of own will that our certainly this comes there is at into the capacity down. we in force support to point season our look, big QX one, we a online go If negative until be caveat customer time So cannot majeure, impact. go another

be a by We of of price that. more short lot that, crawler high pressure negatively will be using could impacted something or our tube like

margin certainly our to as absolutely start to capacity be to Is expect anything and online. meaningfully add? fuel you'd comes should will You directionally go like there up, better

to I No, even that great to I a when what today, hydrogen not had you'll remember, see I huge step what doing haven't people take And sure want I sure will I right. we're will a that in the happen benefits, last we're did one it And economy that's improvements. policy. on that opportunities quarter item think kind soon. question our And the discussion have the Chris. making is mean listening was incremental should of pricing making I we think think -- on gas in opportunity. large in top you company advantage United for when When that stations. road bill hydrogen to hydrogen the the networks, replacement better No hydrogen in at bill. to with infrastructure that like -- generation hydrogen networks in vehicles, of hubs, for to infrastructure reconciliation for the $X includes of natural for look associated The take fueling positioned billion here generation the for generation natural U.S. blend States. the gas is of items of world

gray. to with going allow more We're rapidly Asia. These to this this Now There's especially exciting change hydrogen, costs imagine. without will that as another be than there's XX can and suggest for well The world's tax years. out credit green, people this it's to a for make going be honestly, credit are much going there really work tax hydrogen changers work U.S. which in green as going sure more potential accelerant all Europe, economy. going to the extend green would to game on, work And all $X on, and quite which lower in on will hydrogen. billion at $X.X

It's there Plug vision. When really, in as online So to with broader this the could pie of completely rapidly and be States I even saying make and a this hit zero think industry they and I think President point not, aspirations United vehicles Power’s, of being you but get see in also XXXX he how line based of company those sitting better important. to goals cost even or of anybody kind wants kind of quicker Whether the pie emissions. is the just XX% don't as positioned. quicker, plants hydrogen it are those critical, accelerate opportunity to possible Sanjay really this from possible. as these as hydrogen view, big

JV kind around Portugal. on the the hydrogen planning in great on kind that of something from Acciona industrial supply kind What one to and French like just hear. on table hydrogen kind type production next deals the you Spain? and for the road of you It are of of That's as or market. Spain, are supplying guys? as here that's on some within sounded plans stuff of Is HYVIA the the French for far Maybe strategy more

Absolutely, Chris. And yes. yes and

generate That'll XXX% of for does HYVIA And we be throughout fueling includes Europe. stations, in course, hydrogen it it it include do vehicle generation controlled we customers. France at if Chris, So to be that believe and you Plug, JV, aftermarket developing look by fueling the includes, service. and the using hydrogen will our electrolyzers --

especially years, Because there. see availability we're we huge supporting announcements in it’s Over I of as the expect electrolyzers. here the some our liquid initially really Acciona. a the significant activity of in beginning as What's is, opportunity with And Europe, place not putting be are France. capability. with we'll to will would be the But liquid activity the for in storage realize, I really in that hydrogen coming people is interesting of States. think nearly leveraging French you'll that

that, Acciona, major become Just really think the And And I the help will overnight. on the here a almost our to ability build site, experience in based even you in that market plant will liquid grow there and the customer quicker. liquid. need have player with on with applications to building state, we're us hydrogen

That's the just great. last maybe one And here.

bus of Any you the for talk could with with working side? the there kits for discussions you on guys train, the advanced are and collaborating If about for timeline North plans power partner? others fuel of beyond that America are module kind then, that the bus guys those system? on And purchase OEMs cell and new the

already have globally. They have sales footprint. includes global partner. a think a but through that there's they only think has a not U.S., network great -- huge BAE they're mean, I We Sure. and And huge units Plug Power. the I a

I’ll great. guys. in hop Thanks, the That's queue.

Okay.

Thank you.

with question Jed proceed comes your Canaccord Dorsheimer question with next Our Please from Genuity.

Andy. evening, Good thanks. Hi,

Good evening, Jed. How are you?

Good.

I or what I the shut year the So, of the for during quarter? majeure, first first triggered the force majeure force guess guess downs the half

want do take that Sanjay, you to one?

hey, Sure. you? to And do how Happy that. are Jed,

Good.

Good.

really the additional May, issue supposed first week what two an was a suppliers. was key additional mechanical at Jed, absolutely week but unplanned So That's to the plant be event, for mechanical is supposed weeks. plan by essentially, to It plant ended of of coming was a sometime of had was gas essentially that industrial be up a the completely up was having one basically our event to come some some went start not then happened where where did allocation supposed of online and they to supplying an plant a stop. there outage being two additional outage that online challenges. what challenges. some ended from And They and triggered additional industry it one

caused really that us. So

pressure come like felt plan on feel and the customers that that to weeks that were the things online, this to gas online three-four storage certain the for depleted sort of like that do is situation amount with Jed, typically to if of have in of come plus industry it was like something supposed that happens and the that there deal typically at happen. commissioning was Furthermore, And additional was was pressure, industrial phases plant tends probably what minus in or plans So the weeks, this. two won't time. site you occurred storage

the coming the So June. by June, up the end in than new really plant of the of online in rather beginning Texas ended

anticipating were a that come sooner. bit online little that even we might plant So

of top ramp because where issues in our some that, you on an customer, they curtailed XX hour Tennessee we are Even other our industrial also up plant, outage gas Now, their have additional had feedstock terms facility. by feedstock in had supplies of supplier. about

about where something So had you per tonnes somewhat to you industry basically capacity essentially took manageable have offline. that supposed event all an again, this trifecta was situation of are that now event, Tennessee, today, only come really One, we're capacity we be and obviously day was but given to that But what that XX capacity capacity almost Newport, a an have added we're Linde's of all this two, right. in adding looking where line. big back Texas, looking on in at of

May, of obviously has like we one weather more well. the July in just activity as that faced the a to some hydrogen part industry storm to some the really support June, lot So really of and

really what happened, that's So Jed.

guess. color. Well, more here But Sanjay, happy it. directed extra too, that appreciate broadly thanks probably for I -- at I Maybe, Andy, to you really

installed yet. not it I’ve

If improve between XX% inefficiencies being do then think the look And on now? the abate the of is it are as as are burden sort I how of with if of to even to of attribute you're CapEx sort I at that costs production? incurring, to overhead the producing kind more kind building you start ramp sort on of an guess not the these I and tied weighing that sort Or burden because hope associated split -- CapEx of wondering, that of start just to much I it manufacturing plants. go I'm split? to you anything you plants should that right higher is the costs, that of of are costs, much you and materially So like that from the you're how along?

me that take parts, in let two So question Jed.

where our the So today, is really expansion of this in Tennessee plant. us for is somewhat meaningful

which X.X CapEx the molecule So we're to in fuel to we're a a is is today or obviously about human resources. fuel we on have plant, at be versus the adding to to terms being going tonnes not not is XX we tonnes. what day. cost of in that frankly, what cost of contributor it loaded biggest We're the of of our more in day spending fully really XX But higher that really Obviously, that capacity/ have more QX. more adding tonnes storage, a take hurt tonnes be to X.X margin at But Jed, anticipate

Now making. recognize the then fully you as you you're point start--

A hydrogen, CapEx. well. cost to lot plans to As CapEx. some start through this online? to you to really the the know about pretty that You flow is newer of our then is more of what come of impact think going become about going the when the It's

new the would we Tennessee plant So hiring at really before the our online. be do would additional only training managers plant the facility comes

of near is labor a that, along, term perspective, how given make and to slightly higher -- doing, what could we argue customer. XX/X a one hydrogen well time it is are the higher that through the though us in as the perspective labor available important hydrogen is the given from there from all we said you the have cost to even this going is our as which and So is that for sure for done going what all you would is thing cost Having meaningful. industry end not that's that is cost to be add

adding so We're of and ahead of there if even before assets form like high we're crawler. going October gone is in pressure plans in react these some our adding another majeure that come tube this have customers We or the disrupted. actually November, so peak more because online that of plan is work tankers more we the season, when not month are their through can force liquid

that incremental with to QX, many Yes, so fuel is in cost flowing Now, QX? here factors what still is not be would given at we through is, we're margin an saw it pronounced the once. be going as in that dealing as it but

now. share that's an you with incremental can So color right I

one process methane That's I today in. can decomposition a catalytic squeeze on heard more from really helpful. Hey, manufacturing garbage. if new of I

on unfamiliar is that perspective, your We're that would always impact? but Curious, curious commercial it quite was obviously frankly. thoughts thoughts it's your to on from thought companies a competitive have Just other closer. that? suggest R&D, I seem more it with more of

Essentially you're feeding with [ph]. Orangy

is I back And, has think issue. some the think one the to nationwide. and bigger a of I step availability know I about Regardless of experience Orangy think from what with that's it. issue

feedstocks you’re where to think I going get [indiscernible]. in

Great. Thanks, guys.

Jed. easy it take Okay,

Thank you.

question proceed Peterson from JPMorgan. Please Bill comes with Our with next your question

to Thanks Andy see nice Yeah. question taking my for and and team.

Bill. Thanks,

to this extending. in lead some plant? if any there's production we’re pretty understandable, number that’s forward delay any but plan my you perhaps you and original certainly reason plan? but your month. timing or the of it, manufacturing changed just understand And virtual, And How that's to of the is, I'm Yeah, it compared manufacturing Symposium, mood more it's related times to this curious other in impacting just of just maybe if And apparent didn't constraints the was industries the Plug about and are is, looking supply does a to a sort delayed the is speak progress. that I hearing fully your wondering by move announced I'm then asking question anything delays.

It hasn't.

a was as it with proceeding I question. our planned. I that's board, When think good there is yesterday

third shipped to million shipped the yesterday, really with team $XXX over quarter. schedule was and had XXX we're We've I sitting quarter last activities. we reviewing and push look think, I in the the hard. and

on and we're and schedule coming equipments on We’re in. plan

that is to plan stacks. we were on our Europe signing last we equipment I for the stamping off week, metal equipment to of in And additions shipped key one example, before the For us. know, the

So this let me just way. put it

and intense chain I every become in day there project long be this management, incredibly, is the can management to supply think you at all I has during team and an crisis, tell and that. doing day you, we'll we've doing issues have do it at through successful, chain make the And understand we can our customers. go can morning, been sure what I any to successful and be it. X:XX we continue supply support to at

my we You got relates of into year the year, in to as may June in next cost? the and as progress it half through the and quarter, more here the next systems does close to things. year? That's into XX% been how move that should a here asked of trajectory But cost And about think A in we has next somewhat about question. second those curious actually the more and great. about margin your how that lot hydrogen lead the

you one. let I'll that Paul, Mr. take

supply supply freight and to flows, continue thanks question. general, the few Andy. it for And Thanks, chain, routinely. for hit expect I things the mark impact COVID. that tariff you're global issues to from if over routinely are hit think cost I in equipment talking the There ebbs from we've like think the Yeah, mark last I the the the about impact years, XX% chain

there’s that and product the then also going are on. new there's And ramps flows. ebbs So

first the expect with in the we half expect plus next going I into it's and year, it in routinely to get one forward. particularly XX% volume the I that continue volume, move second So as move half a half. little we stronger And the margin with to a times as

color. that Thanks for

Okay. Great.

I think one here. we one got last

to have off. we sign Before

Yes.

your comes Greg Lewis Our Please BTIG. from question. final with proceed question

it bill. they're for infrastructure little a little hubs, you going here. opportunity. squeezing to up being Like, through bit bit you I'll to touch nuclear. just set being me clean on like of Plug business couple thank as comments and it gas one. Clearly, Andy, keep bit to think hey, little like a the a a huge that trying kind do about And knowing to in focused to to Hi, that's your focused, of energy it, positioning natural that, a wanted you're going Yeah. looking I that win looks what with hydrogen do. some you're around being

the Plug we government. You're and hydrogen, just not stay that to going gas, to the going sidelines is think something going be green for opportunity, it's to as natural that be blue just of, about is But opportunity? because that beholden hydrogen kind that on to my or targeting we're

that I very very, that And cost fundamentally in in the think will of hydrogen interested impact. you the -- environmental green look certainly are I is hydrogen. apps, the wins at end, real believe if I that because a we that think support Greg. of good there take question, because

capture. a honestly, and speak we going Administration's and even look support is at you're that green. We for you example, and If get targeting for hydrogen Depot support quite for people with hydrogen Biden all when versus The the -- with in green Microsoft, others us, there carbon zero Home capture. [Indiscernible], dramatic. think the to like and you know opportunity blue between Amazon, to the carbon is that net take committed are for not not house who in I delta Walmart And believe

going And go the way when carbon of belief cost the of renewable you coal. think my at at -- is so, energy, capture I look to is you look that if

for the Okay, you thank thoughts.

Okay.

good. Sounds

Thank you.

really telling and we appreciate business electrolyzer the XXXX, and Well, you the really everything you our to week. new will XXth. on vehicles, today -- only time business register energy from all tonight. be appreciate coming our questions be our everyone like engagement. taking handling. XXXX course, October And symposium, on we road updating Power and And And Plug I we'll going I have business of next I base material the have to we as not markets can the the and call the about all mentioned,

So please register.

So everyone. you, thank

conference. your Have this you a disconnect today's evening. participation. concludes This time. lines Thank your may at you for wonderful And