Plug Power (PLUG) 10 Aug 222022 Q2 Earnings call transcript

Greetings, and welcome to Plug's Second Quarter 2022 Earnings Conference Call. 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 that this conference is being recorded. I will now turn the conference over to our host, Teal Hoyos, Senior Director, Marketing and Communications. you. Thank

begin. may You

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

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

the quarter to the a passing and and passed Thank Act last clean hydrogen call. Inflation the the through The has tax the and PTC hydrogen with to provides by the achieve good monumental you, would hydrogen, of security. second recently provide Plug's good clean the conference Senate. of hydrogen specialty thank This world's production Plug cell enact for for hydrogen everyone, week green a you, XX% industry it's It's for good the been zero week world, The attending a credit, U.S., for production energy. it's XXXX of for a national trifecta Teal, major incentivize and the fuel as Reduction inflection to the bill jobs and for world net for providing effect. climate, bill

the energy in Our regimes. independent become corrupt has push electrolyzer Europe from to benefited from business

as are coming exceeded with for Europe. of seeing our year, that by projection from XX% We benefit the most have orders the already our

Now XXX-megawatt rapidly can was as here which the PTC which New momentum to by grow Fortress grow with order, the the deal week, States our Energy, demonstrated in a megawatts. last announced XXX will with

steel With to hydrogen fertilizing the use green electrolyzer be for at and like Applications green manufacturing to heating. have path looking wants concrete We'll hydrogen competitively. carbon cost a now hydrogen passage able of as will their competitive to hydrogen. business. that manufacturing reduce move such and price natural the gray. act, our applications with and are footprint hydrogen today to buy Everyone that we expect gas gray a a green dramatically All boom

application rapidly. it's hydrogen But COX effect green us expand of will the applications always footprint. big where first simpler there believe to substitute to for be Now other And feedstocks. also world's these business applications it We industrial path for green the is hydrogen will cost that of these a more competitive. represent help our hydrogen markets remember, makes XX% green

good becomes all cost-effective, for more and all material product like of bill stakeholders, course, Microsoft HYVIA vans offering, becomes plentiful our equipment powering customers, communities. is the shareholders, our more our and applications employees and our hydrogen handling As of attractive. including stationary This

profitability path as our mentioned months. our move by will shareholders, our Letter, up Investor in For six to

Finally, to in to before beyond million Q&A, I'd and like million $XXX of highlight billion XXXX. $X XXXX in goals Plug's our priorities revenue $XXX

in our foremost, commissioning of initiatives: XXXX This includes and XXXX and hydrogen one, path XXXX. globally First to the key by tons XXX and profitability U.S. green tons XXXX. following by the in in XX X,XXX

gross Obviously, and more a service to sooner XXXX. in gross the Our our quite combination breakeven hydrogen later and to leadership via can of end of will the start by than margins reviewing gross business will possibilities vertical plants our the of be simple margin math year's leverage building by is XXXX. PTC. reach XX% plus we two, The are business growing position; see it, than integration and more you margin XX%

experiencing are products. improvements versions latest We already look, the matters. significant of with scale our And

and showcase So and four, optimized just highly continue expand quality. especially upon our cells, and And will full our Vista our our across manufacturing for success these and strategies allow fuel position. our goal with HYVIA, finally, of and electrolyzers, site fuel industry costs more drive hydrogen, sell ACCIONA, business; for and leadership handling deployment cell our is not down industries. improve automated are of of manufacturing us all material JVs, that products, sell green more sell course, four our more and will Gigafactory stationary These HYVIA, our on alone sites, Executing but the Fortescue. to our SK, industries

team top are course, I above executing priority. but my your Sanjay Paul, Of won't is stop questions. and the open we for our now knows here,

[Operator our Instructions] Colin Rusch first And from comes question Oppenheimer. with

question a this guess I maybe Sanjay. is for

as curious the in with of volume opportunity industrial converting sense could of get it like conversations competitive a well hydrogen And it position about land start that fairly quickly. facilities maturity power the you relatively pretty sourcing, looks quickly your could green incremental with as the U.S., of users. potential maturity the which conversations I'm for at Looking and

Yes.

great So question. Colin,

us as time well. things the a been say So of take of Let the question spending heard me before the we've one lot part of this you've and second right? first, doing,

One power. activity of sourcing of working is party, quite location on we which internally a price can picked that, right anything, both get biggest as level right so that up The bit. a with the focus as is if third well of power, our has renewable

hydro when So we're facility build about X. and is approach, expand prepared we we've we what X, even in do where best hydropower actually the think hydro looking you taken right, that -- not his mentioned Number number how guys plants really remarks, then electricity. for can go our to other looking to this we around, that solution, with and the as faster, more is, Andy the way we're

in then the the There's location complement right There How a all that nuclear that? you source, Texas. to land, about other how And look even able more. regions we've do that obviously, expand you do you talk we're and at the to you How can you energy be do are of one down? on the of do in approach wind about how activity larger even about we're options the but the you think that some surrounding the the you get doing really we're are Second, locations pretty what right. that of are like for power beyond We'll look is in the looking things talked of of could things if lot multiple about at along. solar, that? going some tuned. of that think we far drive stay can at not really how evaluating cost is terms power meter plant? only there? net Please think of solar price about. really And you electricity How locations And

of down. with gray So continue that X X the hydrogen internal all work how and and And renewable on goal, us. the as applications. PTC, on you and only are really discussion, as goal, you saw you it is this that is can we it, that third for green Colin, robust. is down and to on now well as party hydrogen the hydrogen one front, as very with electricity shareholder single letter, And Green we to do drive focused in very, those industrial be versus cost markets imagine, economical Andy can touched cost every of our opens of so both as the drive

some of very, application the amount before about was electrolyzer PTC the as is XXX-megawatt Andy have about enacted, opportunity that think today, the seen a this talked for gray even the of in really hydrogen really announcements hydrogen industrial here very substantial us. creates opportunity. You used a When you being that

Would a in here. There's you're you as on-site only event opportunity application anything? recent to anticipate be talking industrial of us well. for add of fully opportunity a going even electrolyzer if is that. activity. this electrolyzer, gigawatts goes with And this those XX% We lot of like XX-plus again, to about now So

else, No. Colin? Perfect. Anything

mean, and can this to your of supply a of front I'm more like you've No, want how But chain terms you've to this conversations up. electrolyzer of -- that the here. for chain both curious going and . cells. for fast you that about in get of guys big I'd concrete sure point. respond curious talk their move. the you I'm Yes. moment supply could scaling how out competitors preparedness bounced I at is about But those ideas kind got to a those lot what and obviously, really a just and the are this watershed in industry to of stressed kind bit little fuel but around, I'm and about to get say

has of with staff I sooner actually we will simplifies to Colin, design. about our take PEM back that design, Yes. our electrolyzer actually about and envision say have first than And the One which ingredients actually a double actually really three do later, rather chain. supply I would a to step when there's power, that today think chain. supply kind

one And And are lot happens leadership the design issues because Probably the our foresee go of to that's we year a supply not business. you can adding is we've product the more I people. that continuing think this right don't place. in important simpler. So that we is, the reasons put through the with

drove facility I've for sure who relationships Tesla we And know, long now which mentality your this we Tesla same of vehicles to a to develop a As capability. lot occupy. you suppliers. built integrated Mindnich sort the be facility could built in been about And We've facility manufacturing whole hired time. with make the Reno working That for their chain those delivered. Dave strategic Vista, look, in supply how Rochester, is can on we've own about third,

I dramatically everything. changes think

years. sophisticated been have past driving we chain supply So the for people our who have

-- that have trying that third, is me goal our is we to of I'm on parts, downplay this is I and to with cost position. supply looking to we're day. that chain. us We which first issues they supply to do And have continue designs, going I need item and chain don't and the what's leadership want look, on help facilities. to call, downplay But don't not which the every the the We do. a get reduce fight And number the make call. that we morning -- in have

is an complicated. So was. less more it say and that it would But I than it everyday it's effort intense is

question James Our Evercore comes West from next with ISI.

action So recently. Andy, here clearly, a lot of game-changing

I I with on, a you to what number. that? out will you think opening Microsoft evolve? things test how the this do next data steps up Could market. center, that of had PTC how and is the that get are of market about before through One even you is the the in opportunity put we billion hone you successful the and $XX and And the talk wanted talk that to maybe

the here. I'm combined Colin a product was James, that sorry, mean first, market. we step. which in that And think I design have I big numbers two-year the And rolling with it quarter activity out others next-generation Microsoft to we in and outlined effort. product, will for already, be And letter, was really to this Microsoft our a -- developed fourth

think numbers XX months, I the were next in Sanjay. Yes. the

activity. the months, of XXX over about I XX megawatts next think

products, But all the Albany our be are hydrogen numbers we're -- we of the stationary application, what not, was we're product. center many the the it, the not that generated about operators. and are and one deployments, not. as same third, generation for engaged the SK plan challenges by electric it 'XX, outside starting, continuous talking this will big or but or of as town having of we'll And it different down vehicles with deploying end we applicable. data brought about I That's think obvious, with power for megawatts James. be there'll people in also be it's first worth believe probably with powering this talking scale market that actually scaled believe be will very And is it But will biggest And City So XXX I the SK. just powering first in where opportunity. today, product is EVs. that's be for And and of

So the it, really plants it's this beginning the and future The that these on work $XX us just what's and is generation, represents as going the really the about a bigger beginning. combined only at with doing huge And of a peaker centers. green pipelines opportunity huge not for only data think when Sanjay's really you with hydrogen job. are billion vision. well really that's But

Right.

Okay.

you'll quarter that Andy. was be look seems the Is maybe like but a then on. a That's of and to port port series very thing helpful, you another large-scale might first That in Antwerp there. also big probably it. facility And building in that announced the other that and Okay. the applications exercise fair? the you Got deal, earlier

miles. chemical to Yes. in enough absolutely. I a population are it to looking would There's in Plug HYVIA to And that Stationery. the handling our that green looking And world. ideal pipeline I was second XXX business is to feed is looking situation what to building -- largest port. you XX% plants. business, for sport the Boy, certainly at the scale at of we be look in hydrogen material James, all that what port, they're really chemical at port it. if think, it Europe close And like the We're say,

in -- meeting with I talked the about the Ossoff is lot is that focus Port hubs. possibilities James, hydrogen the these the So the Savannah. believe and hydrogen of one here Georgia, states, actually in And and opportunities Senator hub I was best a of in for Georgia. biggest we

Port think bring hydrogen even York, about West West with of is the Lakes. Virginia You of Jersey, Port into New we met guess, to in the when Savannah, the know there Manchin, opportunity New I Senator I from Great an Virginia

really, ports a is So hydrogen opportunity. and huge really moving

Our with next from comes Wolfe Kania Research. question Alex

of time, the maybe guess you're to maybe something about kind but PTC is how then got help philosophical about about I it able would that like obviously, and to forward? near-term about Maybe what the question assume if respect how near -- the headwinds. to negotiate price a margin the contracts, moving But out you've fixed think or that time, with for means in then to term, with is just over fair the green pricing. kind hydrogen pocket of I'm curious PTC deals you thinking how over PTC you're

Yes.

of company contracts I I able when near that think really the about capture good think you question, and term Look, think the we have, will Alex. be PTC. most to that

will I capture think that's there'll be us, is the it I invest evolve. I which think those majority sharing that the other will the how think industries, some who along Obviously, most, line. like but

And follow-up maybe thinking just a that. about... for then Thanks Great.

much other what I different with credits. than it's don't see you think

what I think makes forgotten all price shouldn't honestly, our applications more quite applications. more competitive though is interesting. And I think a be everybody's hydrogen

it's for to green our And to So a for opportunity a it's great great others. apps. hydrogen us opportunity provide

little is pretty a the it to That -- repower. more for of just I continents makes way defer think your aiming kind has does like how the Or of you balancing bit focus? thinking that kind the it towards can and you the looks fact a both now kind about scale Do with supportive kind those have U.S. hope? U.S.? attention And is And environment. of that now you of maybe about mean looking this you kind maybe of do sense. something think of policy Europe

here Europe. we the more Spain, we'll to must for U.S. the real couldn't a about actually rapidly how That's do our will we focus to for you more ourselves. ACCIONA. because have think I and better two my radically partner than moment, best a for the to it by while you At interesting States, the have testimonium when mentioned what do And Europe. and market newer, leverage think Plug, policy, you partnerships I question, Committee would more the in heard Energy move believe most without opportunities Alex, In leveraging solar, be we'll our

Renault we'll in activity looking Our with with HX -- be other obviously, in focusing JV, and the capabilities. wind Denmark we're belt, that's think up with with where on we're Energy leveraging their I at, activities focused

So think much who lead will people can I be Europe. in and Europe, us in more partnership-oriented help it

remind a without now take more have our honestly, always in to more I people approach. American Plug. in of to the players. focus No more much balanced company. of and Europe. bill, in is hydrogen two like States, turned one we But years more a an will the be I and position. quite will it pure-play think Plug invested leadership Here past European the a But this company would both But Europe than have

Our Bill next from comes Peterson JPMorgan. with question

see not IPCEI lot passed to We after last follow see on Europe. Inflation up saw come Reduction of Plug good to on We manufacturing? on question actually couple like HyXTech Act there we directly see And So benefit it local what Plug that need to more? I'm that? do lot to kind from Plug dovetail does just partners. to how I this? for Plug a of in to a of directly, I head a last question, does a path takes. on benefit in of your benefit billion logos funding. the X.X EUR wanted It's the But but there, that guess, does is entail

is look but numbers been I the No, received our HYVIA support And HYVIA at has partnerships. know was that as level I major the government. been significant. haven't have our obviously -- Belgium And initiative that, that our Belgium announced, focus of vehicles. and support in you first, if with for Plug has think alone was on-road from -- on activities the going We

we to recognized European, that the fact more dinner And more beginning at think a with to and to take be is goal the able and Macron, be that can -- Plug the we'll was think I I moment, presence get throughout off. at But we more line to tell And becomes more I was that Europe. certainly and HYVIA viewed was paid I as with clearer, maximize business in look that best cash a directly. vehicle. Bill, our our to the our participate at of as activities invited amount as felt I you, more just support has I France, really

but as actually bigger opportunity, of sort not the the and the about the actually being I rate stationary in And cars size shorter of few the the of importantly, business biggest side one next guess, this you other of that of look back it's how later kind believe years, it run term. the market. given first Terrific. as half of a -- the year electric near over did the one like coin, can hoping it's does looks you miss I you're that part that that more big her, met Certainly, weighted stationary some seeing of opportunity ones. as

in is two we is, If market to beyond three really grow the earlier applications. market the about two see One stationary years. to to call, And I will state in I electric vehicles rapidly from powering perspective, than vehicles. was really going there's on-road going electrolyzers, as next Plug -- more mentioned the big a because it's talk the stationary

moon. what the to people XXXX. market, think do Plug. move? demonstrated, call have man's was it Microsoft -- has -- for really close block, very this second Yes, very, think, The like that a incredible going be and opportunity we've They're to is all they looking that's anyone to eliminate or a one obviously, walking center developed read by when I XXXX relationship an the and you data if on diesel which We

portion XX% about this for our when the I of XXXX. have will on-road, example, business our could business. -- looking on more is of then to be I be that If road about than And by think XX%, you XXX,XXX think HYVIA XXXX, business vehicles think

who real six number a our double road that us there's talked we think, And customers that we I months, at XX for to the of map year. So piloting the products good fact when you are the is going have beginning next be we which HYVIA. over to with expected the the

that's a clear are think sign that business I sure large. opportunities real those

next from P.J. with Citi. question Juvekar Our comes

hydrogen. which biggest you refining quickly And cost hydrogen a on just of of heavy-duty do cost Yes. think today market trying is U.S.? with where to And you sort converting do that Great the get PTC? Coast, would goes Where U.S. in the question is just with on the for news the PTC. hydrogen. Gulf think and green post how industry steel it to I'm start like levelized

turn over I'm Sanjay to here, going P.J. that to

in So we very liquid got context hydrogen gray gaseous that we well, know hydrogen of it on-site right? P.J., gray as you versus well. put When with to talk kind as about hydrogen,

despite of to take $X.XX some capital $X.XX electrolyzer, things the kilogram, probably price ammonia So volatility around gray supporting looking take now layer to all be into things there, $X.XX a you’re kind would electricity right, a you're mean, refining then on-site hydrogen hour hour when commodity on-site give that, number, you consideration you of that, step you that about right? if a then about like back, got electrolyzer, okay? at So kilowatt on number just or like the Think connected I industry of the XX-kilowatt talking that and a $X.XX or and sort the PTC. cost if take, electricity,

is hydrogen and the we a where sudden, ahead, the it anymore. single evolve a application is right, to happens. what some that's time industry but as green Obviously, economical grow not So take move for all not of there will

-- parity, the When sort to Now with our because applications, diesel to take you application, has thinking our view about at it's more liquid of than to range $X more that a even been, market want into system about parity, efficient. sudden, comfortably charge of diesel from look you be it's delivered. when in is at about right? can can transportation the all diesel numbers, it hydrogen think we be long liquid $X and We not think start always hydrogen that mobility perspective, about PTC, so those a And And that of hope some big And at the fact think, more that stands now work for actually green that plant, have that folks we path this as return becomes pricing, for even competitive mover which building the P.J., much for plant. it had, we've us allows the is really, it out we provide advantage Plug. us, kind a X hydrogen like I on time. a point, been clear. have to done, and that our learnings a force really And been make folks do market appreciate we've I

infrastructure. Great. clearly, green this hydrogen building have of you ahead been guys out terms in And

to and Fortress or have hydrogen off, more, do question I congrats Rochester? with with you second it guys. for energy. you go PTC electrolyzer what could will, hydrogen takes capacity my Do with seen expand orders you So green up, more? Rochester Was in you've also mind like just energy guess this to which at even is demand PTC built New enough need your

picture I where a wrong, month X earlier that P.J. question, be good I megawatts doing real a mentioned kind a to in think more. we give that's a think answer a me I the hope of expand possibilities XXX that megawatt But is October we'll -- have And at about of do Rochester. I rate by month my let in there's math I think I'm

XXX, and that push XXX. I think optimize probably way that to a up there's to facility

design to footprint I be But at I think our that we'll looking expand especially do improvements. opportunity think Europe, there's an to support in market. make to opportunities manufacturing

say, initial we've I'll some discussion. already So had,

I did duplicate opportunity. the plant really take designed it. duplicate duplicate So one was it, that can of And it, that and design think items well an that's that we think that we we I

footprint that months would take So the probably together, us put design another we and to it plant. build XX

thought, before lot built that to at think P.J., the lot have probably a I capitalize it's so opportunity. great used and just we're serious we in plan. duplicate But head on And that, time. the plant that I more of having to Europe, will be we giving a I than I think when look first you started having that for a think this especially out simpler full it a it, then for doing to hair, position

next Stine comes Craig-Hallum. our And question with Eric from

for handling. So the PTC I to and you've talk something all smaller potentially the is hydrogen coming of years expanding for talked know down. of that about cost locations materials

Just wondering what how your Is expand thoughts an opportunity? that the or are. would that would that -- still objective? And market

team infrastructure, facilities ACT to and this smaller don't reduces done have and trailers, just Jose regional that do cost few hydrogen cost, a the simpler. have becomes Eric. sites of And combination much we quietly simpler the of on-site swap do I hydrogen But see infrastructure to do actually our beginning And those. hydrogen smaller more. talk of we're having trailers our his think implemented of acquisition and where the we and much, the then it about easier activity. about and -- you of controllers of lower outs trailers It makes actually

we opportunity. fuel, is lower dominated do the the a real which real, be that's the fact significantly now will So that And cost, think a has great benefit.

the on opportunity? thoughts market how question. expands any be Might that tough a And

'XX, billion $X billion in that So could with be really I the frame. out, opportunity to And $X how the to time pointed business 'XX business a scale. Jose smaller plug ramp to symposium, at had path the we think that begin

was the pulled about pointing you any Jose think obviously, done that haven't new real projections. see what lower you could We question. hydrogen, That's in. and cost a But can of when good with at being

you customers still the me. Europe in That's In are maybe targeting. it. you that kind of release, just for X mentioned Got And last two helpful.

wondering details any if size, cetera? Just you can give it's timing, potential there, whether et

But we the customers stages. will been my in actually in probably would fourth people, I Eric. convince in that to in looking difference And we do United speak we've the -- pedestal see I the anything. big more have quarter. to final, about in announced we’re be -- phone And being all I I targeted us in We're we able fact, Europe, European, over by was I've in really this made has year. Yes. three -- serious. if expect watching today the a XXX those for really States, Two say Yes. think before hoping final I could one customers made Europe have comment

Riley. Chris B. Souther question And with from our next comes

talk $XX Can little the time potentially activity the the and by the billion funnel? does for versus U.S. if about curious, looking yourselves? the are maybe electrolyzer bit strategy deliveries. potential around you geography line infrastructure electrolyzer PTC And customers a within sales sales your change owning you frame maybe the could Curious

Yes, good a question. really

manufacturing. in half because self-contained Chris, with funnel of be a will there's furnaces quite East, of are is the containers. our funnel. There's in and smaller think about of rapidly that the heart they're X-megawatt of most projects are opportunities have $XXX deploy but is which looking electrolyzers a XX%, easier is percent the you wouldn't folks to just our give a honestly, to our smaller manufacturing, concrete don't So million of be which run lot XXX that about, shipments, steel probably just second that, Everything X-megawatt and There bottle their lot you for funnel. to of feel. the to today from And XX% will are system, essentially, Europe the you over There Middle manufacturing, like systems. about hydrogen a

year XX% be from third of our XX% could I be as coming next our I it time by of report about will when think the this as quarter, suspect And revenue electrolyzer much business. think XXXX, I to we fat.

PTC the as the infrastructure a kind then just of building And to U.S., Okay. Or selling market the within strategy potentially maybe opportunity potential around the of take both? the out do change versus would growth yourselves? you

-- been I question, that I have this good about Chris. has good deal. Really a team thinking mean, question And management

in the be and of great for proliferation and detail, own some mentioned we of generate you portion actually in to much the build I us plants, offtake? we mentioned partners. build we without the think obviously, discussions a reduce, a And It looking to as you we develop really the one which today electrolyzer plant to business, portion up could someone could more as we hydrogen here to so a in plant I provide a an expand building rapidly. of plant see of our customers. where and model was, could letter, Texas. a our cost that end would able going -- circumstances gigawatt expand And electrolyzer different us of had our to use with in may I as hydrogen of a part fertilizer facility, with own capital that could into and our partnerships support meeting could help support liquid more a X with plant rapidly we grow opportunity was that

a of the lot So thought. have answer giving is we your been that question to

comes question Wainwright. next Sameer from Our Joshi with [Operator Instructions] H.C.

you X, localized in that have Or account chart on cost your letter it that production? does does assume delivered a hydrogen? of into take Page The

that. just going I'll delivery take go green the the if delivering costs going ahead, But same. I'm gray be to matter to add, let are it Sanjay. Sanjay hydrogen, really or hydrogen you're doesn't

right? the right, on Andy. that chart into delivery that But Sameer, take itself. that cost, is That's consideration does really site, So not

it. Got

this Paul. is planned inventory the then And Can Okay. for inventory you that two what sales? quarters? over buildup? that like just the us delay last maybe know let Or is buildup in Is happening some one with

second really to we almost as all we the do and we've second X/X do if be sales half, last about -- going It's the second seen Yes. to for we're It's look -- in mean, half. in historically, X/X at year. the we in going sales do I well, of you half. than did anticipation first half the the more

year. ramping well the So it's what of next new up in production support as anticipate a after to big facilities and push. first as We're that part we

see I the that on -- half. in build that's continuing So don't second

will that know to we're it's the for towards will growth I deliver building it in temper, all think temper, driven it second really we that but half.

last for then one, And also maybe Paul. Understood.

this million. you over almost On the million, we increase been $XX few Or in expect quarters? sequential SG&A Should SG&A? has increases level the next further do $XX see

per think the $XXX -- I million for I It's the $XXX was there of gave some million number No. year to -- quarter. a of beginning

I that some I was we product and Microsoft just think forward. million think as quarter of launches. heavier move proxy programs this little new is because $XXX to a But the for other $XXX million a good

question Thakkar Ameet Our with comes from next BMO.

exit thinking of flow of XXX going to we as bottom the kind global? of to in kind XXXX. Or of being all rate U.S.? PTCs kind that be day kind might kind Should in is the of of of think that of Just on how tons production real quick about Just kind per the about outlook line? the

let to take going one. that I'm Sanjay

Andy. you, Thank

I And mentioned tons, opportunity is a The said higher the be that the an be prior want in that When mean, to North tons actually by given you that to -- the tons referring this XXXX. XXXX, does as to is XXX up number Europe. to end but we number North some in calls potentially we good is it America. well. that as production So of XXX strictly well, by going have and really X,XXX XXX includes we've American Europe bring in we is tons answer that point, yes, on there activity for of do

now And sight Super. Okay. PTC. just line kind on of then have that a of you the

kind for derisk kind the kind about offtakers would looking actually more had very about guys keep seemingly kind for of to kind the of Are offtakers? you XX% for thinking of and percentage of looking you I of kind green you production, well. to production of helps, hydrogen about do as guess, think up of PTC talked guys ramp I opposite level? some this yourselves? of that to Are willing you Or maybe still XX%

Yes.

hydrogen. at instead of XX% demand we in I another but it load we source that's make does of our thing some pedestal We I from the just here, XX%, an that So we really with want this capital. hydrogen couple to isn't Right benefit on that other But that to we you for changed it One we're never foremost also I of. customers, been for think points our that some that that's which of really to note would investment on point our this XX% focus PTC. is big Andy and customers our right? the so so of now, in first point starting of to really, will great -- that added that for time. of to make of these is the through Obviously, we're has is One, for to go of sure most TBD that We go we focused can at are right? mean, only in that the run priority, I financing us, plants time. sell view. sure touched care of is to want of we're on here. you highlight But a on customers going changed some thought that it's important more in, out certainly going largely that given want all hasn't they We to to make that not haven't equity I that, that another that adding loading trying capital drive changed really, of customer, plant that see a taken forward. make market, capital seeing stationery and number think being will right what think question? of point really plant But comes that view opportunities sure structure that But our formation, entire But XX% make benefit we're haven't the investment. want look, as our what out type from sure get now. right? mix. that's see So -- to as and That's the

with Next Sandler. question Harrison comes Piper from Kashy

expectations I was rest if margin your year? you the maybe hoping So of just through please? walk could us Gross the for margin,

the concentrated to we're if good at look is experiencing. be Well, equipment, the news the going growth mix of that with sales heavily it's and Yes. you

step progression. could happening. a into in couple the a big as of double range positive big the plant to So think mix. I half kind -- I definitely would And change. fourth to sales on of quarter, even and we're function from see in move will even say, will depending moving production Andy it things max quickly scaling mentioned, short We're hit it margin -- electrolyzer term, first is going the digits going to There's ramping the ramp we're final that's

I the the the impressive in fuel of we some doing, things. two We've some was fact, was today, continue and enhancements particular, cases, things really -- service, in make seen, The to been we've XX% teams. with in But big those of the other progress. -- in including some part service, the working field. The of reductions. It's

a year step fuel, out we as PTC. that of start facilities the part -- and And play next benefits first paying we in that we move pay see we you'll with in as talked really then to we second kind start kicking starting next the start of as we're and half, So year. about, function launching those off. see will We really more into bigger but think off

to through start changes 'XX those events as big the year, some function progression So play in but of out. step big

customers are for from grow you about handling material that that Or customers demand as sounds then you indication I great. curious color. getting think the XXXX. is great customers like global you pedestal coming, it ready might the And some still on which you're think to new That's slowdown temper was they're hearing surrounding your positive in the economy. what your have pedestal But from continue Do -- side? you to

that are slowdown is two we new advantages. that this, Yes. can Good mitigate occur. any adding Kash. question, could would One customers help I that have say we

and second customer at too, is I seen item we think other may that upticks have one seen we the slowdown haven't customers. really -- and

difficult an advantage process. to actually find have where it's difficult reduce you cost, labor, it's selling acquire times the during Sometimes in to these ways to

with for of I one making who So cells. is of change remnants I've years to customers the the to our you really can big of dramatically the tell over older commitment batteries move fuel technology to worked

actually your not have position in think but That's through noticed cost is tough that much what labors that selling seen a reduction. a you're are business seen a savings. having I sloshing -- before, a a to And I've these to I've around share better of lived times are plus always haven't in opportunity that you're tough powerful we market tough some if down I pretty has overall things slowing and is when acquire. smaller the message So

in. a have your it. I just if U.S. hydrogen about thinking you Wondering appreciate of was could I a unit on outlook about thumb build-out. maybe for If sneak just I CapEx on the one per you rule for give European CapEx good basis modeling you if any refresh moving X us last just could as wondering maybe forward think purposes?

the bulk Yes. CapEx the in our of hydrogen Well, is green platform.

capacity a we number building a do couple production of for Andy mentioned, different -- have, expansion. out as we're So facilities

proxy. $X billion mentioned, terms tons, rate. large Andy $X a But we've billion what more. the As that is the are PTC range need These in plays. get year in scale. of even And year talked a for of run a plants to drives about kind of it's good We'll to hopefully, how see that about XXX the is

Paul we -- a you, easier the why conversation going to it capital. about PTC I to is Sanjay, get make had great think I and

want You to comment?

be add So that of to do the the on about really right? what to beginning, to structure wouldn't of electricity. follow well. sort where thereby One, of green the availability levelized changing be to exactly the of hydrogen in formation with only single that reducing capital capital PPC X, and of have was can project, we stack, of solar all be the Number number this a to went wind, it down, equity, see capital, as will to us. accelerate from hydrogen leverage, industry very with equity equity PTC pattern wind right? the keep equity to our mid-teens the X. XX% and dramatically similar solar capital, in sudden, likely financing. of what folks where will expectation cost return are build-out. happened happens who type of and But with Happy green thinking will really electricity, forms tax a equity cost of it here, position you source for we unfolding of all was last capital the actually go And I here the cost renewable fund up, all higher way PTC, We think that, what and digit, XX-megawatt all Paul, decade. a to just the two, can list In capital. with help think the solar it I and this Kashy, so One, probably right? capital capital said driving about solar same back in -- industry, It ITC

question from [Sharif comes next with Our Amagrabi] BTIG.

Great.

inflation plant Act, If equipment just announced two tied Plug does it be the need in under subsidies? Reduction you like XXX-megawatt just Steel for requirements take the PTC to Texas? So for aside, domestic a And that additional make to is content able so, parts. project U.S. to to of advantage

And and a [Sharif], most lot today. supply Plug would to these will of great like PTC capture in I this, doing content credit. deal our more of but one, not has only kind more to tax domestic there's of We're able the say And a chain. to requirements, the be $X folks, kilogram our domestically. meet products shorten work. also a

United the of a So content this substituting States. look, we at continue content. to with to time European lot not spent take European is steps looking to make and HYVIA sure. And unique We

our at ways maximize -- looking content shareholders, what's sense where it Plug. for to sure are of most to maximum take our advantage make to profitable we we domestic makes can So

Seaport Tom Next Curran Partners. quarter from Research comes with

which doing the prominent applications some to with they're regards across ensure executives demand projects European alarm announced and pre-hydrogen. we've the energy actually recently on to realistic Commission the it industry and/or for make viable express Atlantic, seasoned that economically how heard FID. Either being side enough about Andy, prove voices, isn't utility to will urgently

your for at is just adoption the projects power the HYVIA FID? in infrastructure these reaching progress speak stationary at You updates are incremental pedestal two key on which pace back what But step NH. hoped just and usage encouraging for TAM, take shared JV customers hybrid on broader mobility, for view level, in some could these concerns higher the a a to on Europe you

line doubt So that be that's going the that make foremost, a it projects no -- mean finish they don't just and I Tom, first it. to projects about and to are reality.

met combination are who's the pipeline Germany, power, hydrogen gigawatts that I projects that So a look in like are I've There others and at from of There's former XX government Northern say, also there. real. rapid. with support, headed this there I'll involved suggest generating the some that's application the They support Denmark industrial And majority with not building towards Head you. of building in which really Parliament support Not serious. are part where of about high. I are would which the sit a which green as world of with time support a spent deeply They want controversy. take I've of serious did to Denmark, to into leadership Denmark, some move wind have serious. may that not maybe energy old the

gross reach comes What you'd XX% breakeven to when the to an to by for doubts drivers And And should it the a margin some those services Paul, breakeven from needs worries. year-end. as we appreciate be cover to opportunity territory respond of I this to year? the thought key negative then, XQ of directly that to and exit remainder Right.

be Yes. and touch the with reducing biggest the impact honest improvements. with will you, Labor reliability help. definitely leverage the that's to seeing points, is we're But

different equations upgrades, other units launched we've so both different out that and And software are whole a into are the solutions different components that from configurations, new deployed. new and going of getting stacks lot

we're the gate retrofit importantly, fleet. to And installed better performance. and So out more able we're the to already seeing of apply

leverage. those it's next -- earlier, the I parts dramatic mean could of it's so labor of that as the reduction think mentioned sites. some XXX in I year combination I And improvements, we're we're -- seeing and be --

So yes, what's that?

Plus more hardware.

Yes.

here but as pretty those very it's start traction see see -- progress, to shortly you're that we're to to good some going out. play going continue And so to

the stacks, As the newly generation installed latest ever-expanding that of well of base benefits right? as accruing

Yes, absolutely, exactly. to chain on on And leverage the absolutely. supply the leverage across labor board,

Our with Markets. RBC comes Joseph Capital next Spak from question

the Andy, -- couple you green of of PTC mean you be to want hydrogen? to hold Plug how not able I or just I'm sort because times even you initially, the you on will to on get a PTC. through, mentioned clarify, if you're think passing competitiveness do just initial do eventually to

a I electrolyzer good step think it. of there's take take when -- you question, back, different obviously, -- Joe. There's business, our advantage the customers

customers hydrogen, did I advantage be for the full mention Joe, third, that in we would As have I a with I my in And comments already what position mix mentioned, of. we can of think said, I some take contracts that's PTC call. how that's where And be thought a we'd out. with other I it's the sharing the long customers. comes that been And I but

and days functionally, very But actually preliminary. I this don't It how early -- not a it I like incremental has. of cash secondarily, like $XXX know right? flow, I like is on you're want now. right math to million maybe get guess Because But does taxpayer how I -- this work? the

and…. that sort you to need to actually set and entity cash of think maybe up So some get I some do tax

cut I'll you really off quick.

For direct first pay. it's the five years,

is. It

Okay.

a million So -- so selling whatnot? credits that of cash from inflow actually actually sort that just is or would revenue, then not $XXX be

think I'm wrong, it's it's a costs. of -- me actually I if correct reduction

costs. a It's of reduction

risk you room, very the could take the biggest if can you guess, longer. elephant which permitting, lastly, maybe to any big maybe of Okay. that on timing difficult the I be and And in And then provide you how progressing? right, but see? obviously that see sort color Is that

I'll Sanjay? with permitting deals day answer the guy who that. every let

development like business. as imagine. right, it's any again, So you Joe, can

tons happen, we not to talking opportunity mean, expected, about you here, can think a if implemented plan how tons A a we're it's doesn't things longer XXX of I much C I here. plan about areas plan And look, our a are think where about look, and So day, things sort is when than like going there actually The get faster I is that. to do than highlight a bit think though, expected. that to than is right? when is where to able But take larger opportunity, just B try will right? would to also and get There what potentially goal. we're to situation XXX

In funnel it's So needless of away. not some It's be going light to to to be be going that. to some cases, dynamics, thought. It's in not good that is real. thought, as better as to than In tons cases, our there. which say, we of the obviously go permitting it might some to is XXX much larger we get but than going

Our Praneeth next Fargo. Wells Satish question comes from with

with Two variable for key But guess electrolyzer so quick the -- questions guess and I the is me. cost. I for adoption green hydrogen will cost. the certainly other help pricing PTC

trying could demand the electrolyzer prices created fall as has that improved so hold PTC trajectory I'm prices. electrolyzer the Or think manufacturing you for So Do efficiencies? you understand you steady? they'll think much just to do

that of it is mean with think you it today, all. I XX% can the tell feedstock. our I plans tells electrical I

dominated Absolutely. PTC by the electrolyze so -- dominate. is cost our will So the key price costs feedstock that down. we'll that item income output it's But come itself the

And with the puts PTC, there. you've takes way talk of large-scale bigger. is and kind going it. of I'm facilities building could now lot about hydrogen the the making lower, through guess and success hydrogen Got the a wondering green the small if you facilities and I But prices other market green talked hydrogen

gasifying There's make So and versus I of guess lot at the pipe point in sense it? electrolyzer capacity does pipeline There's industrial liquefying Coast. the demand capacity of start through a and lot hydrogen concentrate then Gulf there. to some a it it moving

for your thoughts. fit, like seems curious it a So good but

you give yes yes engineer, get you're the I'm -- so answer. a I'll Yes, an to going and

satisfy best XX But and an that example. beverage change dramatically. that of electrolyzer We're bottling him world. to -- bottles to give for can Then there's the a bottle on-site ideal its the I'm investments going just that, of costs In increased pipelines for operating X-megawatt the running those be be we're hydrogen, in green The with Energy scale pipeline, I end pipeline -- what X no hydrogen see you able are hydrogen cases, be case, plant will hydrogen I for doing plants throughout makers. to doesn't it. which today, hydrogen, manufacturer that perfect HX -- at I which look lower I'll if be small infrastructure ideal. out believer in a of take cost who way The off green come you a green dealing the those produce to hydrogen those large-scale All because pipelines will we better hydrogen. is concrete think opportunity you Green building do access plants. a public where that think a be has which A scale. like can by customers, pipeline for will building and are that with smaller. Denmark, hubs. are feeding believe or in made manufacturing bill real of applications lots that for where

really a quite question. application, I honestly, good but big and so. -- believer depends location So of I big, it Real the am upon the the time. pipeline, think

Greg Webber Research. Our from with next Wasikowski question comes

Just here. -- sure off a I'll And of to it keep it one piggyback I'll the keep one. kind it's last of

does speak your larger and/or can over future that PTC in talked longer a midstream of you But about other thoughts on whole? scale. transporting of what means more the the as the of amounts least a bit we on being hydrogen on of development just little at distances. conversation, change the little a about spoke which past So bit in a seeing You hydrogen pipelines, more you're

just move over it way cost turn pipeline. the to to going And Sanjay. I'm but hydrogen to lowest -- is add, I'll

Andy. Absolutely,

a we activity of so on in that Greg, lot again, going So front. have

me very you right? let with very levelized a really you be actually large-scale just a where capacity and really wind about optimal So optimal give Think a an high location. our customers, a can ourselves can scenario, get we're as the actually wind which factor farm number. doing for and for large-scale be well. do that of we electricity, Then very, which that can you what very plant, a low wind have is cost electrolyzer

what doesn't are work pipeline the of the hydrogen to think economics that volume is the through right you we do of makes because So and to amount a a some companies to for economics talking major midstream what small work. don't want

the than really So gets to renewable hydrogen, set is unfold different facility economics Large-scale the via the electrolyzer, way going optimized. this the right? pipeline, probably large-scale is no really, so existing gases energy infrastructure,

liquid a take like lot of network. things you to very And plans through you for how there. You large get in customer, unfold. last delivery do That thinking probably We're can stories got going scale work going to really mile and that. large We've cavern is distances. various to on do to supplement would the then that have

we'll Hopefully, more forward. tuned. stay talk to going So it about have

further no Andrew this remarks. closing are floor for to hand questions There time. at I'll Marsh the back

and at So thank Symposium. seeing everyone, forward you, Power you for hanging minutes, to the an look for Plug XX I hour, in there

fourth This XX Rochester, York will and Gigafactory. XX October from be our event. hybrid a be New will Our symposium

the coming everyone. for tuned and further Thanks, over details registration stay So months. event

This you. today's parties disconnect. good Thank Have may a concludes All conference. day.