Plug Power (PLUG) 8 Nov 222022 Q3 Earnings call transcript

Greetings, and welcome to the Plug Power Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Teal Hoyos, Director Marketing Communications. Thank you. Please go ahead.

you. Thank XXXX call. the quarter third to update Welcome This include forward-looking statements. call will statements These of our future our projections results of position forward-looking other contain or of information. forward-looking financial operations, or covered these Exchange XXXX. by forward-looking statements Act contained XXA XXXX of Act Section the in intend of and We to Section statements the Harbor XXE provision forward-looking Safe for Securities of of be the Securities

our future believe expectations investors. to it We is communicate important to

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

the would turn CEO, like call I Marsh. At to to point, over this Andy Plug's

Teal. Well, thank you,

our I some more is financially term. equipment. our selling details comes the the published understand we It company quarter, of and investor provides ambitions. tough to status an reasons, of noticed of and summary in hydrogen have two projects the about our down to near letter cost that today really of a So midterm

the can the turning X/X The margin issue companies will to generate in to at today. We just accelerate We a Tennessee. hydrogen be by of plans. growing within green from success this demonstrated which positive issue be the a comes We've They'll really rearview this business platform, the already cost won't hydrogen plants. transform building in a to margin equation year. on the how down our hydrogen be out we're negative business industrial gas paying and mirror will the discussing for

business Equipment sales, new We've to even electrolyzers scale. just and are doing over in again fuel profitable for now we're cells our XX%. margins electrolyzer And and already gross handling stationery. made and this material starting

service, XXXX put billion items margins the You two these the $X.X the at year targets in revenue, of together and is improvements in exiting operating real with achievable. breakeven

vehicles, business trailers, real real The things. starts more liquid the systems, even many real symposium of and gigafactory, all were a real real doing attractive Plug electrolyzer long-term with fueling stations. you and at saw know I prospects you hydrogen are real

were You future, to in feel able ecosystem, and distant some but touch the not hydrogen today.

leader future. for the a leader a is Now will to the in be energy continue and transition. Plug

do fuel cell intend see. advantage to have hydrogen we We that in first-mover and industry the not

States by United first We XXXX. the will hydrogen green have across network

with. more at the we We'll electrolyzers. XXXX, of our selling when be vehicles commercial to many JV, cell And be Renault many, have will out fuel We'll activities deployments PEM the on hydrogen road look peaker most largest the using have we'll Hyvia. plants our and engaged through scale

your that, is questions. quite in well-defined have that long plan honestly, Finally, And being to are and our industry. now Paul partners by hydrogen short-term demonstrated. building we are challenges, a and but unmatched ecosystem ourselves clear, is there ready the we I term, out are take

Oppenheimer. coming is from Rusch Instructions] of [Operator Colin question The first

for on Kristen is This Colin.

electrolyzer pursue and sales just you and how selecting particularly for discuss can substantial you offtake opportunities opportunities, commit the are with down hydrogen the So potential of agreements? to question, to, first pipeline to

Sure. agreements with offtake here day. the me, I'm and hydrogen he take sales, to works sitting the electrolyzer every is Sanjay and going

a with scale electricity the electricity So generate access seem is questions ask really question, are that's important are to these there opportunities. customer the huge or like electrolyzers, simple we have required at It but There it few renewable right to a an hydrogen? And may does upfront. actually one.

land is, able be plant projects? with? they have electrolyzer The real one do second they build to an do And to have fundamentally

doing they how And an industry make third hydrogen. going the we to one honestly is the what is be this, of really a customer. deal application, selling? kind Sanjay, asking what do the doing is sure we pay items and the are like when about think three first look When you So that's the we you? about with how understand question, And to customer quite with always are in the have hunt, the how no itself, think that they we working you funded? hydrogen at And

meet seen leave We've commit do that, the just to as in our as capacity the well XX% we've on offtake this in letter, one. we right? to than industry be hydrogen the to is is So we think shareholder not we're that of on Xx hydrogen that demand, A able planned because told substantial, in in of mentioned more support that we economy, want about capacity right? the to build Sure. want the to customer we broader about of outages to all sort Kristen. a the to you we're peak plan ground, it, XX% that, Hey, for number past I we right? for So inbound Europe, as our the of and that things actually about how break got pretty but couple demand think

very, years those of going focused at on. sizable actually We're five really going forward application. activity activity not-too-distant on here. updating we looking look in got mobility we to future on of some Number two, very a to agreements on all we are some in offtake are that that have lot you term, And market seven here

actually gas doing as We're could a some it agreement of Second, as those like swap-type we're heavy of hydrogen side that the of be where the are companies with with that well. work them on or business. either the not industrial also working some

already really as that the you going And support have many our So -- some be activity on and and business, a another to we driver customers as for well. stationery building hydrogen that's green thing also we're guys We capacity our want in our as that we're prioritizing is apps is, well. as demand pedestal available make those of customers Andy deals to of as our then with huge the well. touched to sure know,

are third out probably as tons, now, be to tons mobility another of about that XXX to internal of well. type as that in is as looking be some in gas the is going party, customer largely likely speaking, So supporting of the internal partly it industrial and right tons way XXX customers activity, of well XXX we going that at for the the

did Kristen, that answer your question?

detail. That's and I incredibly helpful that appreciate

if up. then they you? incremental think are on the scaling for fuel just are the about needed platforms scale just any for the Plug? focusing cells, supply the scale-up color Or chain you So beyond additional really chain we on suppliers to Just support supply seeing

another question. That's good

how and I think about own to gigafactory, our our see many can call folks is you manufacturing scaling Plug thinking the were on operations.

in square step able when our than build look feet, Vista which year at XXX,XXX then which I is we were business think our to a support a plant, less activity. take you to

So we very from with. feel capability, our own internal comfortable

worked hired who has we to Tesla’s into know, reporting folks Tesla run you chain. the operation, and As scaled into people him, he who’ve business both our supply

are focused looking we on very We -- critical items. are some

I'll say, to may like support not are, really the things base. we we a but strongly to not a of Things products. critical have items on humidifiers, of performance our lot present only Some supplier our focus had those And the diversifying tanks. think about, efforts hydrogen suppliers, you

semiconductors on people, that appropriate like we're have our sure we the And meet semiconductors many to make very needs. focused

think there's look, lot us looking can that And trying understand I how industry. attractive. of volume excitement today, of they are enter. have makes to we about and folks Lots this a and

of Peterson question The from next JPMorgan. coming is Bill

I more about perhaps side seem if understanding better the, benefits backlog of is a customers talk support electrolyzer to policy this trying guess, FIDs, It delaying the are to merchant. grown. has business of your wondering the, if get or a maybe Wanted of And I'm maybe the PPAs. doesn't function renegotiating

kind Just just I I'm with probably what's of transient, on curious backlog. recognize but the happening it's

projects, of large of maybe about more scale? I how And your smaller kind you guess folks, from we looking year? ahead with where the think sales interest Just to, feel you into refining, should ammonia, it next discussed for a get as do see coming

the -- investor that first, Bill, the funnel has think modest that, So changed. we're think letter. in I We probably I

seeing areas we're see you the I like opportunities a looking take where with more applications, activity is the at it, we when of areas industrial in look you're e-methanol fertilizer, key in at are real activities. specifically think things lots that

there As scale, ship We're top we I'm a -- the have X-megawatt like to platform. a you we of XXX far kind be of what saw can projects just of the how it of scale about year. a and to symposium, of going Bill, development into more of probably to think you manufacturing. ship ways, done gauge, interest projects that's on out. be starter kit. next may separate big in bottle you the We On seeing the it's plants. But year, things scale a almost kind also you tell will megawatts many and see we'll as next give I rolling lot that But at -- platform. see work lot that, will larger of in

as So for 'XX-'XX it's some though that much that ammonia, it in even lot more gas be natural a where you'll investor the so letter, moment. you timeframe, Bill? there's methanol, activity markets shown on charges mixing the at industrial backlogs of helpful, of really in But off see. show the pipeline, will there steel, the our things Is big in like there'll a upfront numbers is roll going

if feel just case, it I like in this feels trying good 'XX. pretty about any delays, see Yes, was Yes. near-term but very to you're

Yes.

going is second have But at should for of margins this should per evolve to not you the how megawatt I feel we making Can power. the how scale, evolving. structure? should low and be presume few us stationary how broad a corporate for us about pricing the are how sort about coming how So 'XX next we Thanks think -- should 'XX question and you over average. years? color I just around the see giving the think give margin

Paul's Yes. let some him I'll London the add in Paul -- my at comments. to comments, I'll make let moment. and I'll

year next will grid in is think more fall where where that applications. is be of I those what next we primarily geared year ship I not think One projects EVs, that will two really available towards charging into category. half

I is of Jose, distribution deploying in really think megawatts. the traditional is I with category at our more our stationary that projecting Sales we'll that products. VP area, be customers second where think, their XX between to XX centers, And

driving give you sure support We have we're chain the the a gauge. and to to XX we capacity, could just make megawatts supply

We business think more that business stationary overall products. because the than just that there's to

You I when million have next in you said? know you add see million included, that include $XXX everything Paul, -- revenue. hydrogen between probably to year business would build to what I to like infrastructure. be We that to $XXX to somewhere needs

what real Yes. leveraging commonality we I manufacturing. and Plug is there's chain side. The established margin the the components as on comment that of for base benefit lot already in just products these a and for would supply and big

kick So scale early that faster than and growing from. from two, And off platform is of to great other on. it opportunities surpass, the businesses then funnel sales a will because is the sort

factors mitigate ramping So you start-up those some of of newer help the products. all some maybe of have the -- of effect

are So direction. targeting line -- And on north product product it line. expect XX% absolutely product we we that equipment on any that will scale I in think fast absolutely of we're as that will

So it grow and we we thereafter. to expect quickly to be expect it year, accretive next

is right about module, think Bill, our would other that like ProGen lot a solar have a one panel. I I

essentially is going we're from Hyvia, to point to especially selling that same an stationery. ProGen we're module using of view, which in the module, ProGen that be So architecture

the there's if -- So product you from lines are a that complementary. lot fact come a those of about think there's of lot that economies

stationery building the the you again. exactly we're solar like reality, cost In in fundamental were over just in platform same, mobility cost over for thing reduced industry, doing in and same we're year, which And because what solar panels next really dramatically long but and the what doing especially our help the should term. position how is

P.J. Juvekar from question coming of is The next Citi.

just from you trucks, what's us Amazon's at either and thing next Eric $X.X generation, kind P.J. for looking going next fuel for essence fuel as at? a looking give that is forklifts Petrie little the on Could power This them of portfolio of electrolyzers? to billion bit cell What's deal cell they're

Why yes, with start green hydrogen, yes. Sanjay? Yes, we don't

the So right, green day as Amazon. per with tons Letter, agreement you saw did with XX Shareholder in hydrogen a do offtake

So again, we've and we the That's talked that's integrated we opportunity positioning all of portfolio the into put of many have. efforts vertically the what company where to value model just beginning are. sales that about, our the we can

turn So that, I it with why you, don't to Andy?

Yes.

those of say everywhere with can't at much to look really of variety a wide And they agreements. need we if highlighted too all to Obviously, what areas Amazon vehicles, electrolyzers. because stationary for So engaged nondisclosure on-road symposium, hydrogen more I to said you Amazon. applications, obviously, the in across are from products

long from Dean logistics with for are says, to the scale. obviously, you runs XX,XXX I you can committed the looking the of I billion of group They And can size to They're their we're feel the tell But over they're what hydrogen. a for them, green $X.X at you been business kind really think in at -- to committed listen Amazon. to and scale -- that partner a now time, Plug. who you with We've gives people us. this looking if what

the commercial as And some to truck vehicles, of pilot should Hyvia. well. on like we've going orders? side kind from And seen we then just commercial delays turning to When expect

So thoughts just any there.

first, would a them like had can built how presented that their at vans Hyvia they say deployment a about and support was model facility think So, to Renault today, future. their to next I'd year. of with of we Investor like have XXX But

can others that facility you using have who expect start X to we these customers, be tell facility out expect sold -- looking to named from year already I to we've be and that identified and scale the We which next are vehicles. Hyvia there.

next Joe of Spak The is coming question Markets. from Capital RBC

you you future. minus the know all you're the term which that obviously impacting And of in here I sort a letter, talked and some and at you know off the look, the don't of issues appreciate I And difficulties that. So think near led talking persists modeling the in about the how in for think, you change guided about XX%, the fuel step I step again, a I Symposium, change now. for be at big margins, instance. where year, that And from can would

about respect, the due year we're over about mean all and with I to But going on continue changes a margins step hearing drag.

So understand level there. of I really want confidence I your guess to

you and another or sort for charges response earlier for was of contemplated. question, also You some I'm your you for about, I in some or that not think the was today to application. if that industrial talked sure customers meant of if

sort range company I'm level what is guess or I giving a about the maybe fuel So for some how add you at feel maybe and the opportunity margins an year? sensitivity really the of overall next gross to -- you do around

think I you've two levels here. Joe, on So us misunderstood

let little he's And I'll because hydrogen address so a Sanjay the margins perplexed.

let -- -- him me components. you I'll you let explain. more then I'll about done, and And So after ask the get industrial ask

Yes.

margin, this So to really as his Joe, appreciate hydrogen in there's look, the right? So two factors question, Andy take equipment, first. remarks, hydrogen drive the -- mentioned me I prepared let And I right? one think and

hydrogen happened in natural right, this in of we commissioning know. to price natural we fast been why there as are of from the margin Price been a over. gas, in year. hydrogen deteriorate know our natural now what hydrogen gas. which year well And far, has function what terms to happened the parties, went fuel now the up And so to But of was plant you us almost our of a what to of forward, third lag relates has before is than right? for Georgia that the natural the in from is QX prices. So, the QX of And you're cost gas we XX% Tennessee, other in plant as QX it gas have price price that very buying seeing QX,

end of plant of year commissioned over. the XXXX. We're plant expanding by other make is We plants on. have will St. before but have that XXX of right? our Tennessee, commissioning the Gabe, our we're break to ground in starting tons about start Louisiana multiple starting We in progress on, to being that We're we'll

So start as produce online. this plant hydrogen, that to come plants

some of that And you feel as that we that profile. our contract will them exit have, of going step that and turn cost. to with of why said, Andy with margin with going hydrogen how fuel a I and year to to of of even to change operating servicing the it That the that is performance And going over to sales the paying you customer will in create our all by margin Andy, we're for we're taper go plays. we what business. lending off the producing be we're cost XXXX very blend third-party what be X/X that confident and equipment breakeven how that, legacy end we XXXX, have, third-party As expansion don't the the with confluence with our absolutely

is which is already at really Yes. hard When have you to at which to the are lot for our going have about we We're as it's our that it we buy X/X in today. X/X start, But Simple and pretty I Sanjay, producing own. hydrogen more look simple. to do. capacity, mentioned, cost Joe, of hydrogen it's Tennessee, a

for for. That's going to be tons of next looking own I healthy, a profitable year think our at customers. very business just our own we're XX

production credit. And tax the also with

that combination give customers. will of will drive lot a keep, of some And to will Some that equipment actually more that sales.

question, I really I -- if really or I your think I to see but understand -- thought really I said In of misspoken didn't you didn't a take other really we're is guess, must live portion your something said look that. easy know really I the Joe, hydrogen Joe. -- it understand. I have can this So I I every day, process, that when at anything. must miss it

the cost first on question me assumption let are of I down. Also, the clearly of glide be path that you're to talking point of coming that's the then my continue totally guess, doesn't ramp clearly, -- what of get on suffer. to I that to I our own of will plants, -- guess, hydrogen. wanted I in the I hydrogen is that to underneath able right, sort all, Yes. embedded because produce what I margins -- understand guess my better want, some to occur, is about if that And

of very maybe sort point just range of understand guess I estimate see you little defined, to seems like a as wanted -- wanted it. and I outcomes a So a I to more a of bit

-- of customers didn't I some there meant didn't the thought in -- on... your that mentioned, industrial the mentioned when response -- mentioned I you I know might to Andy, if some you're hydrogen, for you be another about upfront thought for or question, I charges. you you On had talking you had applications for

There's think know. don't have didn't not must are there I been -- I, idea I no I upfront that, no charges. charges, -- But what upfront I if Joe, no I said clear. Joe. I have

what end have by And first up on the Georgia. that additional equipment months. have will the Olin, The of We're with production been plant is scale look already our if We'll we Tennessee. I out clear with volume That and pretty think what in are putting electrolyzers is our within in Georgia, capacity we're we at equipment at three be there it's doing of scaled low Joe, three investor an -- Tennessee plants, hydrogen hydrogen you I copy at deployed. low The the where is go letter, as commission scaling months. there. If for in doing year. at that there. that exact producing we're So at look

maybe I see. So I risk that don't the you guess may we see understand

guess see I are So may don't guess, think. less -- the you we levels I that than see, Joe, challenged we

we much is of I what business because to If how think demand delays inventory enough. buffer there able more right the Fair was of how It today? the of for bit some what is meet some of -- like little maybe one or you supply squeeze could wondering because looked much Okay. like be should And another mentioned chains? of project inventory to a is level I'm the here. of build. about in how that

I'm take Paul? going Paul to let one, Jeff. that

volume keep the is QX could look to in thing QX. of the in be volume sales of double the at One will you guidance, timing and in context, of ends the when Yes. context upper and our be -- the

maybe So We're those even -- more the every programs. possibilities. of to day working in and of range deliver all

drive. so And a the And really of there's that. that's buildup for lot

What just opportunities I them and mean of doing, I on-road -- that the through or would companies chain have working Europe. that a also we're at and acquired, of between the that quickly. we're you that things of new programs all stationary all lot supply mix electrolyzers, we've scaling new, of different platforms ELX say broad in a is mix there's look when it's

opportunities fortunate meet We backlog of all those. problem scale and a growing the to have big

So you we're then that focused on delivering growing optimize. and and mainly

in the was kind Vista turned production that up and last the scale We've just up. scale facility turned another We time factory new on weekend of up that on in Rochester. facility literally in record

So short believer a no in your to big is I'm inventory. answer question

lot. optimize it each helps volume see scaling in as a the just down, businesses think through best but we you come time is you work of those will and answer, term I individual near in the will see it and

should in will -- So dent quarter put -- sorry, a a be fourth we'll big third quarter big put a it dent.

Wolfe Alex Research. The next question coming of is Kania from

based the Is year. letter. expected cost But -- let's be question to fuel just peak, your quarter what molecule even assume on I about kind interpreting also of based one roughly course simple Maybe shareholder thinking -- sales we we're next on going So at are kind it curve? on that the level assumes of kind up that close hydrogen on just production top chart. the green? the just or say, does natural of clarifying falling tightness guess then average is It's of swap margin just it looking for looking kind gas of of gas to to and next something of forward prices ends over

I'm going to let Sanjay answer that, Alex.

Yes. Alex, short answer is yes.

at consideration gas is from We obviously, why the buy the a future the perspective. blend third-party purchase be what party plant. QX what third to have we right? looked that, it . of the here. into this green from natural from different you our production prices hydrogen peak we that's the to on Hopefully, So see all And cost these peak here expect of takes in

do we tax credit well. again, as the have production of And the benefit incremental

we that despite with this why is existing business. contract able next that's gives us confidence believe to PTC, place in performance why our what production get that to be third-party exiting with breakeven our operating the in the So we'll year,

talk to also I of talked production elaborate that. maybe industrial exploring timely then a Olin? of could a sites just Am then getting about see how what assuming that Olin, the companies. But bit And in like letter there's -- a big with bit with inherent that, in kind you this other Olin's that but and beyond the could other investor Okay. just if some maybe things kind chemical will kind these processes, prepared you discussion maybe given be of kind Great. more And to? -- was you respect could of gas on discussions for remarks, the kind partnership little -- of hydrogen, about just little really maybe you about of

just right? So been right? Alex, working is Tennessee Olin for time, a getting feed that started, gas also obviously, coming But the plan a partnership with long is from. we're the we've

successful it's in Tennessee. So been

market. And lot rightfully certainly a also of in as you discussion continue have going gas success of lot expect pointed Louisiana. to a they that on. the We feed out, in available do There's

they we'll we're I have share time do some want more into lot and here right partner specifics a we in And think a on that. with time, some available, and us terms logic here gas this That's Olin with of do into in much can we're in the right? and as a Give feed on partnership certainly a of lot you I is now, the than something because have side, you're discussion incremental before Tennessee them we how happy to thinking updates. But well. right discussion Louisiana bigger one be expand to dialogue more rapidly can but get with just

And were sort opportunity. gas when the some should Look, hydrogen industrial time, swap over referring into some of we this agreement. of about a enter mean, I

company as And because big probably happy that green a as hydrogen on offering industrial companies a that If some matter you're that's gas together, to it have stage going well would discussions smaller your looking are where for a we're as don't a it, a like and fact, all referring to actually the one. that's that lot hydrogen really well. number at advanced those capacity, as some it's have green a Number portfolio gas hydrogen, of part we if what you don't industrial of have market. of to of there of have and pretty work to. has We we're have if Plug two, provide

next Stine The Hallum. question Instructions] Craig is coming from of [Operator Eric

Symposium, played asked. just curious. how expectations? before quarter, third mean, I I'm just know already updated been And curious going it contemplated calls. probably the of line that I have you Apology the split was quarter be fourth mean, when certainly a that -- magnified. you I Is your was out? provided split I back, been guidance if with that weeks jumping in to I between the actually was So mean But a couple

large about, think things be dictate there I kind think Is or projects? are potentially slip I third wondering, things I'm -- potentially the fourth there could either Paul -- quarter mean, what are to we the 'XX? the as being that? to that just just are And are referred -- what very upside that It's of it Xx quarter.

you take why don't Paul, that one?

Yes. electrolyzer the is plant thing Well, is transparent Rochester, volume been pretty about in and dramatically scaling the first every we've month. the increasing

And of so nature in that QX. happens activity, it's volume of just a by that scaling the lot

The close programs contracts. a of winning of big we've to sum call -- playing and that these on our developing within stem and those closed been And were lot second new them, -- that -- and those we're expectations lumpy when it, going and a out and they closing thing lumpy it's working new have them certainly launching, from, as or terms -- is in I'm products in of and we we lot them. delivering we're would timing thought, now

in are those So line.

third thing it flip. just is to the year, handling. tends material then And Every

bigger QX timing. of Sometimes in is terms

And sometimes in bigger terms QX of is timing.

won exciting. so for That's are talked to like them program the all things close, line. they other with in in about, big customer back Lidl it knew varies launched -- pedestal And we things speak. these at so announced customers, those we've completed of them. actually But It's we And we would just timeframe ranger of which new we've the like kind first customers, we new time as the of for be underway pedestal scale. we've the We've number programs, kind a been done that the things -- are those -- as it programs and pedestal QX those and symposium.

So by we with it's of in we I'd thought updated the gave. context large, say, guidance consistent what and

Canaccord. question is from George coming The Gianarikas next of

you your that doing when for partners? first, plans help just partners do talk more build you looking are Or back you capital, network. to your you So finance Are that more build? be assuming Or hydrogen on need recycle to about you'll own? all to leveraging

Go ahead, Sanjay.

George.

think mean, I things, look, that. on two I So right,

So right? is from plan a So option. obviously, right is we'll we are always able fund online, to is the for explore is right? funds, be months, strategic we is structure likes see number and where as But whether record thing, plants say, be the just partnership this a are, there'll there two an of partnership One happen, can always XX one. with come the right, cash things demonstrate what it's like, the likes let's that will flow of infrastructure a, a track what look these first with that's partnership or given

on Number versus our cash the down? we as just what do of a between solution go can having on yes, getting Is is discussion in point is a forward two, that But us of a refined we depending at production pathway without time. lot is It plans at on that now for well, what is back customer. on really the tax Frankly, own? solar the you the this depends we're in these Answer can. PTC the in different, this credit, on optimal really is the about XX got wind split the right, kind space view years leveraging what That XX-year ago, no it, call started, happened of right? in this and it though, than the have But part when point time. us. generation with here first do

the loan leveraging DOE So have mega the then those project, projects. to guarantee X which solar back led for you program first,

space the ITC. XX% stack that capital the began ITC had basically of in solar You

We XX% wind have capital production which ready then industry. industry, became of tax the in wind XX% in stack the to

or probably industry will be out. a the well. this several difference there'll the should So be we some cash believe be unfold able tax start of change stack point, PTC no Reduction a sort there now absolutely once with as actually at in we fast from Act, of the part to generate leverage how green of Inflation capital really and some plans years these we forward to will that in equity as terms no hydrogen But back

available say should down green can equity, really this equity. capital XX%. envision but to the sheet that multiple hydrogen of scenario financing, to execute be really what network plant with balance you mean we we able that should is the of it's And Xx do to to able do on that's get have able hydrogen XXX% eventually where not green will to to we XX% we generation be build. we're probably looking a to goes And gate, that out we There when Xx be to

see playing that on how gas. activity potentially in potentially ask traditional see extending you that And just get into thoughts recent you time and love hydrogen could how as renewable to I one out? I'd to energy curious if more your And natural I'm over follow-up.

to You view, want Sanjay? give your

can it's as question. interesting an you No, start well. Yes,

electricity -- the an think It's long-term is I I using of as green to renewable scale, ultimately carbon footprint comes think the local solution. electrolyzers, coupled energy, with

going I it's analogous put the niche RNG not an interesting an in winner. supports market, And think be to ultimately to would is blue hydrogen. transition which the but I

the green could them, day to I me, long? blue to generating be talking answer hydrogen, funds. going you large of talking And competitive is on versus use one's Middle hydrogen all blue me hydrogen. the to once to in the asked same the for with shown holds you RNG And one East when think was no I to And hydrogen are funds their why blue hydrogen. sovereign I be

I has Again, is it's hydrogen Absolutely, to that think said, the Andy, green scale scale. much, just to We question off right. leveraging the forward, of asset. Andrew add George, a going of what much believe renewable bigger really

that Not accelerate . that think helps against so RNG accelerate -- again not anything And transition. the transition. Yes. I I'm the helps

The from question of is Burwell Jefferies. Sam next coming

on in kind of gross the trajectory Wanted margin little to a bit. dig

XQ XQ. I Paul already should a a it like So lot up lot, double off, for equipment guess, almost in a on maybe first sales and the touched be

it's margin high margins? equipment in I'm there can So you should expect, fuel up. XX% go other assuming PPA? But or probably like how or service or gross company-wide whether that the gross uplift should XQ, roughly drag material it should it curious Are any

that Middleton Mr. let take will Sam. one, I

Yes.

It's like volume the it I equipment. short where sales is this in that significant in change you hit -- instance there's over right? function volume layer But think answer recurring in the -- head. so nail about the equipment you mean, a That's I the the sales delta significant on really quarter, think short revenue, largely time. by like layer a the and in a the one driven step comes in

have significant very So a that will positive impact. certainly

minute There other I scaling a electrolyzer. like mentioned ago things are the on

volume out rates are think leverage near. those you substantially if those real previous that quarter of from substantial So driving That getting facility, on run we in investments that means the quarters. up weren't about

So those positive. are very

which We continued expect PPA. see improvements. and in service -- offering, affects big our we're We seeing our service improvements revenues our

a the part In and XX% cost. part have we've seeing of XX% just number you're We launched upgrades, where of this year, launched terms. to benefits sites cases, starting we're some the we of reduction programs to those in see the some

our in manifest is starting year to saw and continue We step be benefits down quarter, be where through service then chart, roll that new in the programs an as about XX% we example. half almost function were as fourth QX So just offering. those forecasted unit that cost pay really by numbers. bigger the there's the are XX% mix play in a with a think benefits the to of And basis will on in compared to units cut you to those as better and almost course out to next

next you Sanjay and into gas to favor really certainly tailwind really that There in that things help alluded start in mean, events playing that there's whole are of see it of like put other headwinds. margin more and our magnify prices but those as positive and, fuel So to, natural I see things, to to then trend. starting year. positive of those a benefits are we'll host a QX some

maybe in the projects And then from out you next that the were guys pushed you to guidance year. That's Okay. at back some And on said that to shifting October, update recall certainly XXXX. helpful. gave look

there quarter-on-quarter right revenues So XQ see versus it than seasonality? might of of typically, in to a think XQ like in that be decline you because is less

the should equipment Is for Or expect think any also, how that fixed quarters? all around on And then XXXX? get sales that should absorption fairly mark of in the to year? improve XXXX? trying we should a just I'm trajectory the the through sense consistent through be trajectory side there margin for that really it of we four segment about cost in should XX% what

a Paul, for like that you. sounds question

half, still the kind sales phenomenon next Yes. first X/X in for I half. of would X/X, terms of I our would say, year expect general, the second in -- in

where of number -- new a timeframe busy for there's still handling have heavy leading to into material dynamic still We a push renewals kind happen starting still the and and period. the of even the the June-ish is facilities same,

dynamic that hasn't So changed.

volumes QX. some are programs up. helps may Yes, slide and certainly Overall that

that So helps.

proxy of 'XX. year use would a will, split, just the know of math don't on you quarters year. a I you'll this certainly best the So if basis I similar from -- percentage growth for I But year-over-year see to that into QX QX next of next a how play using year as guess is may

the and big. year big having think, of the the said is makes flown way to has going I QX QX certainly I be it's quarter flown that, and handling for a that particular mean timing, programs just us. material how timing this have with

second over to to chasing on we're us. work said, that next year and, the the deliver -- certainly will we that volume. try towards we as compound hopefully delivering, as half And So over things nothing and I into activities move it's surprising with all

expect last those to reasons, but I certainly QX, be and than thereafter. substantially higher QX year's that will likely So -- for most compounding it than all lower

to everything year. trying I'm ship Sam, can Yes. this I

Sorry, of trajectory through absorbed that the up as and fairly what just year? be you are in the get margin costs equipment? fixed improve Or lot that just there about electrolyzers quickly, Should consistent? a ramp

Yes.

a year. from this to it to from I sales. given gave I we the and build to it equipment year, equipment and be activities holistic on. a and expect with expect again, quarter profile year fuel than be of think I see activities volume, QX consistent XX% of number both profile next second better you'll goes better be the But every margin And for stronger next the in margin as because much half, QX moving

directionally, certainly will that's think how play. probably that's I it -- So

The next of BTIG. question Lewis is coming Greg from

and guess, met for they're FreezPak, at super pumped on the I question and on one Sanjay, me. nice those bringing Plug guys Symposium, super Just solutions. use congrats about the guys

market. the of thinking any is One in that you I of past penetration really, ability are ends the as mid-end the opportunity? of go and there in the had, ahead wondering, And about the and how market? guess to to small I the I'm look on on you to I update you've mid of questions XXXX, the kind know talked about the

a is of that this business. Andy. Greg, I lot So spent who Jose, with time runs

is mix this fourth I quarter. interesting customers, of are which quarter probably think in the shipments the XX% smaller, represent the probably

I think that's a dramatic change.

proposition of some attractive a improve. share And credit you'll more to more production And bit continue -- think to make see to, that more the the and you more I sell think of and of that. And equipment? value reference I've I the can will made us tax let

better answer there's smaller be can smaller pedestal -- successful we're tell we And you that to much I are and also it looking applications. we've much can going in Jose you we tell along work has Europe United -- bring looking so that at infrastructure. for the have doing we're I able is do more that Europe. the hydrogen and them in And solutions I start reasons to So developed one for the States. to have to of been It's customers bringing on

there way the imagine a on way Is that? margins think that to about better. fair have larger? think I they I mean, least just follow kind little that, to guess I'll Andy, up to any would a be then about on versus at of And in I Is thanks.

they're listening, Greg. So

They more than. buy need to

he look have that -- lower obviously, the you buy other I less experience. for kind Yes. fuel is any comment hydrogen companies you any board I that elements, buy changes. Yes, follow the I if of would than more, the had say you Paul has And we service. just price I've think would across of like if and if

Thakkar Capital. coming Brothers. Instructions] [Operator BMO Toby next from of from Craig Ameet question is coming is Shere The question next The of

the in to want as every just to of million ballpark with million then a year of from the to half And year. toss-up being $XXX I usual, It rough first, next I first top to first $XXX to for the second maybe fourth sure improving quarter what's kind third the and sequentially understand in third. make quarter as talking we're about. sounds trajectory like So the revenue

you do want Paul, to take that?

Yes, I think that's right.

numbers I focused will strong mean press to beating -- we're over programs, push think be the chasing is certainly, deliver. I goal we're because as I every year said, year. on I to this our And our that.

the probably to big a most do. a landing second always the a in working we and material QX those and make programs cost come QX So of be of bit likely, they as but up, volume, And half, or will little dynamics expect QX lot in, timing programs through between will handling bit the little heavier. of

Got it.

Okay. And then Sanjay. one for

there's little I still your that the that a a of think, was targeting mean might plants like of less commissioning XXXX couple hydrogen thought of HX I there's was and to like actual been previously through a a the possible Sanjay, a production coming anticipated little but ago? returns. the than sounds it's that same, scalability, quarters get production And you're it nameplate confusion. be Symposium, the little out year-end horsetrading capacity best at some most about optimize the

to the the And may but benefit ability raise proportionately PTC? should and fuel of combination 'XX IRA the margins the with that restrain beyond guidance, stale then

right? a you Craig, And So plant bit than or of pretty actually Tennessee, that right? a about production, even be a liquefier JV this plus me well, let electrolyzer sort do about right? back, and it's know what available as the there's we it's when just maybe I feed this think Olin So lag, just our know, When full technology, depends commissioning essentially like the three of gas could liquefaction if -- a it's that. to to take in right? talk And you in month the faster and step commissioning Louisiana we it feed four we the on whether

this from why on going We've of by a know But we're to always Tennessee of in always end tons don't So detail look, commissioning year, to of say we've of I XX be to in work goal tons if at York, lot that we but you XX wanted tons know that looking XXX expansion gone was of and said our the XXXX, end adjusting commissioning to commissioning or commissioning XXXX. Louisiana. necessarily XXXX. in I of to Georgia, get ongoing through was tweaking of project the -- and mix tons right, and we're would the And of that doing at XXX that we're at of project that view. end the in Texas, by expansion a New that be we XX by are that in

think you you Georgia. way you into from contribution So -- as again, of that into a year, start about the should hydrogen should next the contribution the from hydrogen to to -- that Then gases see the Tennessee. QX to hydrogen York of go start some cadence And you Texas. see coming should of start of standpoint, XXXX, some QX in and should is low-cost from low-cost QX, right, see New and as coming Louisiana, go coming you from contribution also you of out

again, we tons XX you that to Some have we're infrastructure, of coming told the incremental year. a existing There get by because the faster really end contribution, from plant moving. be looking an that Georgia actually was be will that to

that if and a have else that projects development want we Craig, we project can the then way, of month business, two have we in the thinking a one we about that is with, if also or and backfill the that because by we're would. balancing sure hopper behind something it's actually make some we're optimizing working you to And

of the that and out XXXX. I how So cadence in in of think it would about that's how will play things terms

is Research. The coming of Webber question Greg Wasikowski from next

been pedestal on forth. And quick hopping the couple ones back and A apologies, customers. of I've also

if sorry asked, yes. already So

I So noticed...

We spent were us. with not hour whole that a fascinating that you

I I wish ones you covered. the only were

since just Lidl On Symposium, now noticed officially the the named customers, pedestal Pedestal. is

now So know has to an for simple on executing Symposium if what interesting a color developed or if since as it's just just us as curious, anything agreement there? any to there's

the where, that would rest if it numbers, amongst may or also but be of great? the the the on customer giving rank stands relative size just versus others, power pedestal -- could comment the then you without And that of of speaking, kind where relatively sorry, stationary customers

signed So yes, after Greg, contracts symposium. we

was that pretty exciting. So

has symposium. about about centers happened And it the days two XXX Europe. Lidl after in So distribution

So thinking you of can Home kind of them Depot. as start about the size

over one Very last original on X.X And the pedestal haven't announcement just one as year heard helpful. then much we since customers, the that Okay. was GM. about Great. more,

if there's appetite be it cetera? update or of expansion updates would stationary Any wondering great? applications, whether just for be any different Any So et broad-based types power there. or

I'm So we with quarter. as Home We've work this continuing it's many to pleased and GM Amazon or there been pretty deployments are doing GM. with Certainly Depot Lidl. But Walmart with progress. not -- the as and opportunities

is Thakkar of next The Capital. coming from BMO question Ameet

again. this try Let's

and and XXXX targets XXXX XXXX reaffirmed Should and same of revenue about explicitly? XX% I'll your because evening. just noticed -- of quick you investor about housekeeping a it that. Sorry letter, the I a I it's it's question, guys But the know in more make long been but thinking for revenues. XXXX margins gross still the kind margin for did we be in

But answer. 'XX, -- chart we're let standing I'll think XXXX… Paul, you you Yes, presented on performance for I the margins that and

'XX.

'XX, to there's that. changes no

then Paul. And go Great. ahead, --

was it's target agree, I yes, No, just yes. And next I year. saying, still XX% our a

as about be in going selling of electrolyzer you your service just of like more as deploy that a part going grow equipment real to kind of a that's capacity then quick. thinking out And contracts Is you're well there? the And Europe. revenue to lot there like

electrolyzers, talked That's team, haven't about what is really review than we yes. -- actually for we service good much Yes. maybe a I handle. attractive more What the And so answer is which a the when lot opportunity question. material with the with

think -- work be business. be very, doing know, it, When we service the attractive. a in lot we electrolyzers with look could you and So Europe, at will are associated very of as the we're we

I right. today. All who appreciate thanks, everyone everyone. Well, call is the on

And will schedule. Looking again. the forward Bye now. we'll happen probably you of end to in provide thank January at January,

gentlemen, this event. and concludes Ladies today's

You the may of enjoy off at day. or webcast the lines disconnect rest and your this your log time,