Plug Power (PLUG) 1 Mar 232022 Q4 Earnings call transcript

Greetings and welcome to PLUG's Fourth Quarter and Year-End 2022 Earnings Call. At this time, all participants are in 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 hosts Teal Hoyos, Senior Director of Marketing and Communication. begin. may you you, Thank

operations, Thank you. earnings These quarter year-ed results XXXX statements or financial other forward-looking to This call the information. of future call. our statements. projections fourth of will our contain position, and of Welcome or include forward-looking forward-looking

of Safe and Securities Section these the XXA forward-looking the Securities be We Section forward-looking the for XXXX. Act covered to intend provisions it Act expectations statements to XXXX XXE that of Exchange of our We communicate by to of is statements Harbor believe contained in investors. important future

However, not rely on be investors or guarantee forward should understood to or performance such a as and are cautioned read of not looking unduly future statements, results.

a current factors, well projections, report December forecasts results assumptions on under for those factor cause XXXX. the expectations, or significant annual item the beliefs result discussed subject from fiscal year and could in the of to Such estimates, as management current XA uncertainties not and as differ including statements limited Form as the and are risks and various XX discussed actual performance of to based risk risks and the to that are ending but uncertainties upon XX-K materially

information. the this Subsequent new result time speak forward-looking statements statements only quarterly reports to are other and as update or call any reports from and Commission. on day or a intend made not These forward-looking undertake as which Form we time in Securities file statements XX-Q after we of and to the Exchange with do the of

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

the you joined us to call who have you and those Thank today. all on

we affected not conditions and ago our Obstacles was letter in we resulting XX our that in a will to public efforts while I the did delays increase years. the the gas, in hydrogen difficulties We this XXXX in discussed cost shareholder success face past plant, introducing macroeconomic our significant the PLUG's of Our year, our cost January, constructing in three products, five Despite next expectations. as attribute our factors. believe performance encountered serve the primarily new pace of and foundation for as this meet minutes natural previously over made hydrogen. firmly

few together. Allow pursuing fit PLUG me manufacturing just capabilities. every economy, explain ecosystem, to top-tier establishing of chain hydrogen pieces hydrogen take the to all a is how and actively the expanding supply aspect the and including minutes

list [Indiscernible]. New customers, One great Fortress of partners Walmart, and distinguished of our including the Amazon, major Energy, is like advantages

Moreover, New as our the hydrogen growth We plans are promotes Legislation, such that ecosystem supported apparent environment York. and IRA U.S.A. this repower broad our efforts by that a become anticipate policy year. across will the renewables,

crucial facilities, role a will generation hydrogen play this instance, effort. for Our in

hydrogen Georgia begin plant Our to early in is set first hydrogen production green this year.

just tons our of by is of expand start across plan to this the However, States United per production day XXXX. the our XXX

in green Bruges, including collaboration with also in ACCIONA Antwerp, We're our the in and projects port in building plants Europe, Spain. of

Part and and as Renault. vehicles product Plug road electrolyzer pay platforms, aggressive electrolyzers plug our also products will through and equipment the to a utilize will cryogenic partner EV plants such produce on plants. of our provide liquid Our trailers. hydrogen, for sharing we charging developing We're also deliver strategy our peaker JV

All SK. our JV of and sold partner products by will marketed these be

the are supply unrivaled our have crucial in in our chain manufacturing sector. facility, Albany believe differentiators The We that in art state-of-the are industry. we capabilities

are scaling as expertise, elements formed Additionally, product essential we such partners valuable the that invaluable to crucial with have access manufacturing as as Johnson Massey, which partnership to us grants well development, industry.

profitability. drive will priority place high accelerate which large believe scale we advantage we of manufacturing, growth when the Plug a our and At business

data some partnerships all confidence can to tasks it make that employees global While possible. achieve and we these our simultaneously, may X,XXX have capacity

benefit global million megawatts to for stakeholders. solutions deploy plant as business revenue, favorable generate which sustainable Plug's Plug clearly the exceed products, commission in recurring of all the and green XXX to state substantial will stationary of largest for power billion player, tonnes sales, By and serve finally liquid more $XXX the investors. our demonstrate electrolyzers XXXX profitability environment than of become per $X.X hydrogen Moreover, in a will source the XX we end path aim of revenue

and electrolyzers its account year. design in I platforms complex products may complete to challenges plants our during stationary learnings, and by transparency new like first activities the ensure want that Building hydrogen the of manufacturing especially products. kind acknowledging potential do business throughout building product arise taking our involves for

my were the initially issues tend on the within not supply manufacturing experience design consider first Based months six and chain that to during year. first authorized challenges emerge and

that launches. who product someone to for can it's in say As has flawless new been I expect involved confidently introducing many unrealistic years, platforms

plans some achievable our have that buffer built believe we in in are XXXX. for projections our However, and

believe, generate scale Finally, and hydrogen ability billion question By will $X I the the economy. one revenue XXXX, billion by $XX of no Plug's we to XXXX. XXXX, end expect to

build We dream in are vision our leader being committed continue to the accordingly. hydrogen achieving and to economy, and we'll the

your open Paul, to Sanjay now questions. and I are take

first will Instructions] Evercore with ISI. Ladies Our West the you. question at from your this question-and-answer gentlemen James we time, state conduct session. comes Please and question. [Operator Thank

afternoon, good guys. Hey,

James. afternoon, Good

So Andy, in here. you're what I like Europe doing

-- with could U.S. into and know aggressive. guys started it more Is world. like to make? You're of that with kind a plants could partner many [ph], Alwar in area with the the especially getting but that accelerate Iberia, the assumption I now fair JV in more of that build-out be you seems

James. And team That are Nordic we really in our the which we portion sense. the generation fair Nordic think power, as wind as region Europe, particularly been makes And Spain of such to two where as hydrogen a hydropower that southern make, accessible lot areas a have on about of assumption and think well you is Europe, focused has when regions. those the

Right.

And and of you're demand seeing? maybe Got emerging. this kind EV that then level you're the Okay. it. charging that characterize of been seeing the you has on front, Could where demand

So what think, in some of -- vehicles. seeing well transmission-wise support you we customers have who as bringing of folks looking large challenges aware And we're to as -- you're much stationary products on to to I aware, electric have facility bring as And vehicles. delivery side, generate James, will EV XX folks to that power because deployments to our in fleets -- hydrogen miles the vehicles. we easier be the are mile away are deploy power the EV the first EV charge it's using vehicles to last fuel the

the see will coming to announcements at plants, be also investors peaker -- our something, fortify over and where say we'll We -- first the our scale James, first-generation products. in see months electrolyzers, stationary XX-megawatt X deploying about

the two So moment. activities megawatts. XX support of that's a those at focus the real And combination the area of

Got you.

perfect. Thanks, Okay Andy.

You're welcome, James.

Gupta question state comes from your Please next Our with Manav UBS. question.

Andy, not you that Help Matthey. it partnership walk do they recently table, why is issues the us partnership supply announced of Just please? kind understand important to Johnson us this ensure strategic that, with chain bring arise? to through help future long-term what you? Does

really great have believe been we when Matthey Sure, but really what to in work use able the comes you in source has today. this involved also capabilities being precious we think we product take MEAs, when critical industry, -- for Thank look, technology and deeply to a which it When Manav. really development in question. are is Johnson metals, we interesting their

cell us as gives developments a much that as development applications with Johnson business. product one combining Matthey and both well believe fuel We MDA Plug platform for strength electrolyzers in stronger our

also about believe thinking something in and in We with plan scale that Tesla of again, XX up manufacturing, Matthey U.S. much Johnson a plant looks here like think Nevada. to where we're that looking putting like gigawatt the the

is recycling that's think you no added than better obviously, metals, thinking about that than start We in Johnson And Matthey. world when an precious the one strength.

think I of industry some about concerns availability manufacturing a technical advantage, the as larger in of Plug the metals. as precious provides the advantage addressing this well unique

we're if about quick basically at handling you. follow-up new could Thank in material looking talk you for so you handling XX add just that. materials -- to your -- My credit very business about do sometimes quickly sites and is

are -- like during Walmart, customers to the deploy European here past mix them what those Gastar it it's in a year, about really in but start our the customers. we benefit a really that's lot you our with -- building lost out scale deploying pedestal have only it North And looking like gets a is pedestal of plan are also capabilities. if aggressive America, traditional I and folks at the but newer customers, And not -- Sure. of year you we And the shuffle. is some fairly right, -- this new like announced

lost represent combine it half hydrogen half the it from And business you yes, a with of it and coming almost about in So of It's it mix, does the jump that year. year. service get will our the when last big they'll use. in

for very you good Thank responses.

next Research. Kania state question. comes Our question Alex with your from Please Wolfe

seen announcements I timing related electrolyzers wondering, proportion a just types of last, announcements? lot just of sense green larger hydrogen in like on what's discussion for even certainly but of of is few in pretty funnel on noticed see hydrogen/green it afternoon. at we weeks. good your lot green of sounds We've a the the sales ammonia, Thanks, the the ammonia. the of for to, kind substantial I'm a guess, demand there's when I terms

engaged that has I know Sanjay month. because over past deeply Sanjay activity in will been the let I take that

out So Sanjay, give insight. maybe you some can

about billion. that When funnel, just really you green you be ammonia-type that again, And almost clear, $XX opportunities. talked XX% including funnel, our that. to do well And excess in it's as again, right, to Happy and related before. e-fuels, you our think it when want down of to break in we've know, of Sure. about Alex, is what's I funnel,

be put in activities some of here XXXX. from able sort in if have terms timing able America. to we Panhandle Texas i.e., some I we'll of of Now that with these And area, when North you sizes the that, share opportunity are real might the ranges it. talk really in incremental multiple projects, think And you be believe going of we something about during meaningful about to on being substantial

even lot more actually North second us as a the there's on it like to in in really sort XXXX some a America, looking talking you forward the actually when of lot look about and half going give behind year. really of time, So at the scene

XXX contracted? discussion more kind And just Or deliveries. the Is by Great. is some just fully that your like you you on SK Thank a of see expectations then how power, was about which and that? understanding? XXXX. megawatts of of curious characterize of Just kind you. are follow-up think I on do it How (inaudible) kind those

question. good a That's

we Korea, way, good which take another the where this by bus in we fleets seen deal with business that -- business business stations grow. -- a of back electrolyzers as quite that as of -- I'm have out in have we bit a will supporting year, occur fueling going SK XXXX this South So to step to activity, including will revenue fueling begins be as stations year

per South more deployments investors is that XXX-XXX and really the on plant verification 'XX between is the year XXX megawatts stationary will complete, we products. in of megawatts of megawatts once that size also a and testing to confidence, working And support Korea MEA a which details we This worth the products. little are should XXXX. our give manufacturing and in Simultaneously, of XXX lock year

-- coordination I hope efforts between development a and there SK. Plug So helpful. lot those on that's manufacturing is and going of

you Thank very Great. much.

Okay.

next your Juvekar P.J. with Please question. state question from comes The Citi.

PJ. afternoon, Good

the Sanjay, My the XXXX for that everyone, and what gives these Wondering Hey, to about is can talk given changed Andy. you hydrogen question tons in delays that And Maybe you had that the day keep guidance number afternoon. XXX plants, confidence you you building per that? haven't XXXX. good same.

Sure. Happy to.

I Andy, can jump So in here.

more And slide some is so happy the the that in before. have is things, provided one couple are think update that had that So that I -- this we we to shareholder P.J., you of seen there a even here in must right? guys

early talking check a standpoint. from can Georgia quarter right? from mark by end about you Georgia this you in getting -- of we a produce standpoint, can in see are and the production So in to there's and that the starting full a we see, As QX commissioning slide,

tremendous a we had have period been Georgia. with the in plant There's learning that

take hydrogen that learned do green in liquefier a fact, Texas, us that New lot not it's forget, that it's as the then has to on are you some of not EPC that in in been able our matter Let's actually a right, allowed the built world learning be into contract, we're execution first into is of when that the more a right? With our capability going leverage learning, obviously liquid turnkey York, now to plants a that, past, So plant our and of lot. that what to Texas, plants turnkey has So we've do to for our but we right? EPC. in in electrolyzer, know-how able of even

to looking spent at lot comes we've analysis, is actually ahead. time New York, it flaw substation When the a fatal work of design moving

Louisiana So we've gas which this feed Georgia. we XX been And opportunity about of ongoing terms you lot of also liquefier, at that when all year, bought the of to there's long year, one for opportunity. projects, from items, XXXX Georgia lead in leverage list key of look tons a of have learnings some then time can leverage actually we the then expansion, work the able Tennessee this

finally, Now plant. is a Texas XX-ton

is New commissioning we talk point, a date. a than about in right? is solar we've production, and better wind full industry than PJ, one the is commissioning to about maybe When could there commercial York actually And how about XX-ton a maybe to different plant. no operation lag, done six-month do slightly talk past job we what

all So and about commission, list into by at full we're the tons all capacity, producing XXX-plus year. and that's of it. at middle very take And the how that end those will by of looking the XXX-ton that projects, you XXXX, we be the at when of look feel good consideration

Great. figure IRA you benefit other Andy, to their is, I talking to the talk And industrial to Thank how out that different and they and to and want in I gas companies, you. from producers do is question that the get, hydrogen to -- I think of get customers? the answers pass struggling how everyone much people. on much And you of will producers that different will keep

are what your picture Just views wondering sort that topic. big on of

think be will PJ, me So take I I let back. step it -- think -- a

XXXX production different percentage capture in be is the to it of will in producer a tax what will think that credit. higher I be initially XXXX-XXXX, able the

the in range. circle Let's XX%

tough, the there's on producer that I but time as was capture think the declined. more -- and are I that to goes balls level, competition If think, I for I in have ability talking probably for for especially think time, payback during already plants in other would already had But -- you're online, that items. you're and those the whole XXXX-XXXX, XX%. your plants you crystal

and initially a So think least that's have how I it at number will play data of real probably is there. putting out pretty estimate PJ I initial I'm that out, fair live the

fair. That's

to So first there space? in is you think advantage being the the mover an

signed. strongly already very feel based contracts that about we've I on

your Our question question. comes Dayal next Please H.C. Amit state with from Wainwright.

taking questions. Thank you guys you, guys. Appreciate

Hi, Amit. Nice to you. to talk

Hi, Andy. Thank you. Same here.

just mid-XXXX. have then fully been that by In questions from fuel helpful year caller, this revenue out XXXX? commercialized material with that billion between tons think electrolyzers, that to the the end of target we could the Just and the bridge respect handling, If to XXX commissioned the how getting would segments you listen. break the for be recent by do I $X.X context,

you Paul, take want Sure. to question? do that

Yeah.

probably pretty that. roughly meaningful part going first of XX%. handling program a this Electrolyzers all, our be meaningful is is think, to about XX%-plus. be will we're to That's part I be as going talking sales, part our year. between somewhere meaningful a Stationary a material of of

fuel tank most a and fuel and fuel, things we've $XXX tankers And probably product think that. put of makes of category, in I target million And I like line. the of and up publicly, talked cryogenic liquefiers to other that equipment up in sales and that rest. with then

turn see kind 'XX year, roughly -- but this meaningful where fuel plants facilities those turn breaks that more next as real going will this mix that and how on for year we we're The down. -- to that's moving into as ramping increasingly and on of those the part year, into a we on of more become

the Paul, on out. contracts what on. on now, contracts? to green already agreements color Thank you network one Or last working those? are monthly the you you, With for up are And me, it. appreciate guys, that of offtake And hydrogen might this setting Any be then in coming for how will respect up, place? this type play

to do for take one want that you Sanjay, Amit.

Sure. Happy to do that.

Amazon, right -- So shareholder as I like tons now pedestal have customer the letter, others. Walmart offtake almost mean, and and we in mentioned our briefly place right, in agreement we XXX of between

amount would, some maybe particular a there's So is meaningful of right? actually network other again, from one offtake agreement plant where are certain a in it's you actually will, perspective, -- you if and B, where the A, plant done C from they portfolio these from situation capacity situations, D, allocated all of And a So and that. are an right? and if amount

like see might in We're having are Now there of some some a a as right? looking on today. from swap in not right? agreements, hydrogen a where you the have seven-year contract, going of also where We're point contracting industry from can are And a standpoint, a the at at have situations as this of gas lot in now. standpoint, what a amount other situations specialty we X-year and that. meaningful we the standpoint. a players we structuring have where take-or-pay contract but that's time negotiation have right But discussions the that There long with discussion types looking from folks we're at of also

have, Sanjay, Thank all That's I it. appreciate Thank you. Wonderful. you, guys.

Amit. thanks Okay,

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

Hi, everyone.

today? How are Eric. Hey, you

doing I'm Thanks. okay.

margin. gross on So maybe just

judge maybe about for the long-term your should XXXX obviously, signposts Can look we in of goals? of pretty margin, progress talk critical towards some just you of to kind some that a the gross on Just objective.

just in I would impact linearity about then 'XX, progression? And the gas throughout early mean, the can what in year, obviously, low the prices I natural maybe you the year. think talk here the

want Sanjay, So you take Paul, to that go and one? you do first. can Paul,

will facilities as are real show, plant the very forward additional year, accretive important quickly. up. milestones. Eric. to important near-term start of on it we And Sanjay a in real move and Sure. that that us, A accretive events starting couple That's as scale incrementally about some things, the Georgia course be are, of for to milestone will and being well. There talked turning the

So that's an one. important

talked electrolyzer And major QX. we've in talked seen or milestone. already we systems improvement to large-scale the the XXX production, we the the a shipping lastly, six we're And in then another month weeks, going as in product, up to about, per moving stationary substantial about next the Scaling megawatts -- month in the first output. be as stationary up letter, large-scale

more and So chunk product, those accretive milestones the for from on come with going going which as to are is that what is it's are well do this that improvements abating to a gas which we through near-term hydrogen turning really leveraging the we because the already we're shipping important and year, green then very us as gas prices to volume big natural of see already facilities, get facility. that

of two lot. terms phenomenon helps a have going for our important. clearly, all reasons. Volume So thirds to cadence, third are And sales kind a those we're of of in seasonality the of number one still

cost efforts. in down second to in a the of well as bigger those going terms half, impact you're volume the So both as see

like we're that absolutely seeing progression and the and in will improvements now. and moving the things -- sequentially course the But through gas, of see those abatements QX the on we're cost given seeing natural benefits improvement already already year you

a to for year be the of in as QX, and terms think big profitability. year progresses, get I we big going us to a quarter So it's

Got it.

natural at Sanjay, do know all? there comment you on to a want Because I is gas delay. slight

Right.

gas benefit by end the the you cadence numbers about at flow recall, be right, And of our molecule. holds, business, around talked the the natural another as to $X than in and our about decline delay a MMBtu Clearly, would this of starting if gas into maybe quarter there's margin Eric, trend about is So that. we so were lower an natural very by cost we year. are before the way, helpful. we price thing -- which the the when fuel that thinking And for the certainly much see

be paying one meaningful come for our how thing, plans one I'll actually online, in if mention what And fuel is have the as actually final we're throughout today amiss that us XXXX. to didn't for cost pretty trajectory versus I our will third the business margin the market a changes impact this,

Yeah. doing rate, hydrogen a then a green next, the you think little $XXX a you wrong, on number roughly annual in double for what And mean, if $XXX previous bit to that's production about like call planning I'm think I a look basis. as constant And I XXXX. million. a about on pretty to year, more XX% What over that. that's incremental. that's I could be number, me you're follow-up it, I'm we would is seem just rate math about beyond you're out a mean capture Correct half, Thanks an that if your years than but right, credit three-four maybe question. and capture mean, When Absolutely. million going talked a the if I that -- the cut

flat, one and I what just that's ahead, Do to that then think I'll you But that, which Sanjay. more you I assuming hand continue will to guess want probably Sanjay, to we -- I make build off comment Sanjay? plants. plans stays on will I'll it for comment, build our go

than goes time in Yeah. given numbers you're up. going going rate, rate and XX% be to But hydrogen time obviously, right? as obviously, similar And up. go are math-wise, economy at is big to as tons, and the frame those we number is if that, That's only beyond flow ecosystem that get stays right, to hydrogen number and tons steady that, capture this number. capture the cash a Eric, that's absolutely XXX And Andy mentioned, how XXX right, point

you. Thank okay. Yeah,

Thanks, Eric.

Burwell question your state Our Jefferies. with Please question. comes from next Sam

Sam. are you How Hi, today?

well. Doing

explained came in operational little line quarter, implied. you back the that in ago the was electrolyzer at business rollout. top hiccups guys due in down guidance you On light month than to what the the that a in ramp think guide I related a bit the update to gave the And

if come So the to have about been light top just to ramp and resolved. issues and And in gross curious up what how then how margins? caused line impacts year those the number should how think through that electrolyzers

two first There there, of one, will I ramp let let light. are actually little Sam, a address Paul Sanjay talk the business. questions And about by one, the the was I'll quarter second the electrolyzer the

Paul. So

Yeah.

error chunk combination and effectively I activity was all all we -- in the conservative through that of think their of that, new private companies public a moving with through new of finalized you're about models, space issues little felt previously addition was towards processes accounting meaningful talked what some when structures, kind our And working get and into acquisitions. and to associated some for to we moving those it XXXX into in of new it going a a finish. that processes programs, shared company until of -- and

The it's the and sales the volume there. is are good news --

not just So timing not thing. volume like really the was a there. It's it's

to So more be process improve that, stronger continue it forward. -- easier -- predictable, but to as moving is we a manage will

a was problem. meaningful piece terms of fairly was through but which work in of So is volume, problem, that the as the And the we good again, it kind final numbers. high-class

the that, and scope cadence, talk terms do you Sanjay? So and timing electrolyzer the want about of in to

our product project really to to and we we think we're right, way focusing One, Happy have standardization, electrolyzer Again, products. on essentially do running we that. a that where Sure. business. the business, and business two are is a pieces turnkey have managing business I there's

ends our our more we that from work size within think, project percent a the as of New business, that have going internal on the lot the we Energy. Fortress completion our customer with timing there's can that ramps project rolls and doing how we're of a and business, as project out. that, which of given external on Now synergies like for and things becoming well of accounting draw project the scope That's up I the

our availability would, standpoint X-megawatt X-megawatt making our of all our and in really with a customer power. from our is is this hydrogen for product, case and product with turnkey easy, land architecture need if Now and architecture, you green X-megawatt that customers because water especially

turnkey. levels comments are that's traction you the there, of in absolutely seen since our product we've some We of as shareholder saw And in tremendous providing our product, launch of right? letter, the

revenue at it. the that's a recognized, revenue gets XX% Now revenue part and about latter become about that But when timing as from looking terms of you but XXXX. as Paul how meaningful of into in ramp, you go the meaningful the happens, overall very really mentioned, being installation our towards will think QX a we're QX see a of of in electrolyzer should from cadence standpoint, how you

has Okay. nuances Do the there's thus far firm to IR a the the Really a IRA of customers are the mean to, been with new, begs very and delineating mean funnel before lot their especially order? still digesting out think the mean, implications any I'm there trying you order this I question underwhelming, of product. converting I it on that other I sales the details to digest. say, and inbound and is sort of project your but helpful, the to all follow-up. that PTC between reaction backlog. sentiment there's the reconcile my

one. take Sam, So that I'll

fast. think actually level, at quite how companies respond a is what is step seems I large businesses you these and take a Let higher me like slow, investors to back is for of some

think So there a little difference there. do is I of bit

-- do item, year. XX of shareholder the probably booked we systems the I in second last last letter, -- in the we these we I two-three months On think X-megawatt of mentioned

I allow there So with that the there's will help treasury guidance guidance. July guidance there out business -- going comes momentum. use to always That to with will not I'm cases has will be treasury some think think finalize in it out that coming which I its said, it final been greater evolution being in uptake. but an will be when the because companies,

three Look, I Plug, can the understand do it. year you, -- CERAWeek days. folks already week, that look at looking tell half traction next good -- billion look do how when at fairly who And with meetings proudly companies and XX this hours I at large how are and think IRA $X.X can mostly but look for in I'll at I is it at be with may electrolyzers. established I of a investors I

Got it. Thanks.

Sam. Okay,

with Please comes Our Perincheril state from Instructions] next question your Biju Susquehanna. [Operator question.

Biju. Hi,

quick question cryo on business. the equipment A Hi.

Just opportunity this there third-party talk how your can give for color trying on there? Are internal you ramp needs? this serve could the you any potential to about mostly the to you Can understand there. sales? to be looking at Or big

I'm question. to your missed the heard I start. the sorry, rest Biju. product I of

The cryo equipment?

Absolutely.

look when It's -- I this we fairly if would I better -- a say many cryo much So year, trailers grow significant look the how we to external? at percentage-wise number. the Sanjay, how at trailer we've business, equipment, from a do expect

going right? even Absolutely. storeys plant X And the all needs XX-ton to every a need, include not to trailer that they're

to our been sell -- looking support we're the that able can that liquefier be actually hydrogen building we facility products, or we as I in that about are But looking have see And people built Houston XX expand the we and electrolyzer or trailers demand. us at we're ship to to to too. coming there's trailers to trailers have and cryogenic that know we're that that probably our that

hydrogen during the to also we be people liquefiers that XX be means will pipeline. the liquefier, a to real transporting be the And high-quality off storage used are distances. we are years, cost-effective of the pipeline next deliver is ultimately, to hydrogen believer the liquid hydrogen On primary any going on able most that believe not of who

So year, -- continue sales and this deal there's great know we're we that liquefiers we a number I activity. increase have contracts, four Sanjay already, we and looking to four that of sold to

number? somewhere -- fair I'm year. is business million and between to $XXX cryo the So a $XXX that Is this to million circle going

It's Yeah. Andy. a fair number,

Yeah.

key think The security well point. than I But of we using important primarily hit internal cryogenic have So more Biju, the of as businesses we supply actually the is yeah, from those at those for another use pays as equipment you of savings it products, bought an business for our part on acquisitions. cost those model. also

and working our for acquisitions it's own and combination the that use use. external So a both are

helpful. you. Very, Thank

Please our Thank comes Kashy question Piper Sandler. And you. question. Harrison with from next state your

Kashy. Hi,

I just Hi. one results, more Andy, so wanted to QX dig in little time. the bit to a

And Looking dipped and they then business a and on margin similar cell been gross XQ. a provision at that's loss drivers Could expand QX. line, were consistent question it services just the increased the you the what infrastructure line, and there? fuel bit in for in XX% systems a

that So should what what QX? just confidence to start walk and improve us happened drives the through those there in and maybe starting QX

Paul. ahead, Go

Yeah.

reflects the equipment it equipment and see And new manufacturing all in company. a now facilities. product line, across was investment So new in the in QX fairly what you large

one one up in coming ramp. So here to launching just have Latham talked starting large-scale Those and you are probably extensively in Rochester. seen, two and online facilities, about we've

So initial you're of, conjunction some on at experience with a negatively equipment products we in margin. always unfavorable you you it, those seeing our off new this number initial the scale of leverage phases those are of as what turning have product Those line. products, draw launching call new down combination which

step and to facilities. those As we function rolled change leverage into on see XXXX, a you're going

pretty benefit electrolyzers first large-scale products it's so that And volume kinks you're at now addition up those stationary launching that going the see for a in to and to on to working scale. big out

speed worked you do lot And when a of bumps those and so and you have we've that. that bruises bumps through initial

to we year, as margin leverage, this those through but continue just accretion to the those and to issues. products not year, progress particularly see you're continue work as so scale we the the going And through

On chain the line, issues really access service in to that we other we're affected with last talked supply about, it's getting part parts. year -- and was

them we of programs to. of tremendous We And just didn't have putting sites get we'd a far we've number along we've in place. and programs, seen deployed benefits which as in units those to into small hoped the population that as

collaboration that, and out a the now those at customers in, got to and of active that scale we've 'XX. much parts said roll a worked faster through we've that and lot do with Having in coming the issues got

of benefits terms those we're confident more in the that ever seeing than So investments. in we're reliability

start service definitely see significant And through, positive so in you a those you'll to that trajectory margin. play as see

And hoping we be to in there's the understand we'll that was on to But accrued. over of and forward, where will that first of show loss we're deliver hopefully so as those some profile I'm half our first some move the positions see progress. we be even honest, in as important really we're that -- that the service hopefully position conservative terms

the that months. seeing first in we're couple already of And

I we're year. progression of real going good as have think so And to the

Thanks Really, for appreciate it. the detail, really Paul.

and cash. Just quick had on follow-up one liquidity

all cash. sheet, restricted speak it Just just $X.X about short-term of if securities, in you the on expectations evolution you And XXXX. used of like size of up, on at I been cash we those and summing expectations maybe your to looking balance timing wondering could usage looks loan, the should just any Thank guys your discuss billion how cash, if in about there? also then be there's DOE you. cash thinking was the

short Yeah. at those investments, spread securities. term all I I they equity are of I total maximize liquid the from and appreciate We When and the I look pool investment on obviously leverage mean standpoint. in short-term that. look an cash, nature. try the at

that Given and year more of big in the see rates, market tick rates, the we you're this actually you'll forward. up -- go a as see you interest

a even restricted $X I collectively, I sit mean about cash, basically total cash in the year. billion close to to But with that's at XX%-XX% me liquidity releases

business the it -- investments turned. our as and move So forth helps equity does forward as fund we as so those it

you position, probably paid So and with great saw off that I'm generates. we sitting a

small any in really as the don't six very small to money. like -- I So portion times the currently, four said, have because I debt of have is converts times

will convert out. that So

we the we're showing stronger with sit And year. And much pipeline balance a sit unleveraged a good and me of the it progression basically a in that so margin, options. with so in fund to and this terms sheet fairly in puts position I in position sales both

actively close we that with and have to relationship the great Fortunately, working us DOE trying program. a with they're

of process industrial through diligence a probably lot going really vast. as all pretty know firms to engineers diligence. outside hire of the mean, through. a our use at due is plants, they're we speak, you and to to as It's they they looking different go they're look which appreciate, I There's processes do financial

about mutually a mutually to concept, we've are But we we're to on a Things billion that on outline been aligned diligently a that that contract and we're of working $X program. fruition. talking working an bring

have given through strength circulate them options and as of the in including turn cash we year, on And fortunately, the balance given I facilities Those the year other move other the facility me the attractive Georgia leveraging and that those to available opportunities positioning that of to sheet are the programs going there. to the PTC generation this very and we're capital. and nature the

good high the So feel something I coming program, to half, really you'll DOE space in real on. the we'll that in probability But opportunity I very second think other programs act that feel like a and either about that's has fruition. DOE see or I the

what makes months for So progress, as we'll Plug. sense the see

you. Thank

Bill Please next And Peterson question. state JPMorgan. your with comes from our question

Hi, good afternoon.

the Sorry, I loud. in am be might airport,

[indiscernible]. presentation, your about I've cost. production In talked My if February $X you is X per kilogram. the apologize near-term question it's to first about I So related costs -- production

that's month we to to about lighting think Georgia still the or want way make so. sure next think period it right up as Just the about

that. through around probably against right I 'XX programs time frame level that how confidence guess, that would -- then than later online, from comparable competitors? your That's may and guess compare be I Your -- coming

that? Sanjay, do you want to take

are Yeah. we've Bill, we about feel the right, that Happy about a That's pretty absolutely that. number talked good to portfolio very and perspective, from confident do about, that. we Again, it. $X number,

the we So comes have The from actually about rates little a number cost when Georgia. be a are we But of electricity online bit portfolio So than ton of numbers right that. perspective, green when actually, at you that number. first better the our right? overall north plants have will the XX in think got about hydrogen, that, that lower other that's even think I

one. number correct, that's So

down. think want molecule. to And about number you But the down, make the two, that cost bigger obviously directionally, actually then you lowest importantly, that cost That to impacts goal And driving terms hydrogen here, sure get of keep and in we're numbers electrode, you cost impact cost of see CapEx depreciation more when the is really and the driving we the -- will thinking of renewable we which just overall can costs that about right, possible where much as right? a that has go down. continue that

and also as plus one more about duty. second with My offtake potential guess great. related But you heavy time, you guess, to it's experience the as did announce I I how Okay, more last year, or be at we're the have around trucks. strategy same and is, doing HYVIA. Nikola We talked an to offtake in past buying

trucking. nickel Partnerships, to for the likes or with JVs, players? a about wanted So heavy-duty agreements for how other your just strategy get of thinking or you're offtake feel just have maybe

have discussions the the we about lots the board potentials vehicle of -- of market. that's at Bill, So heavy-duty level

I Nikola. in agreements. we with Like did think first the interested and foremost, offtake we one are quite

margin we the heavy-duty the with the question associated the in a with term struggle that align long is vehicle company. goal think with provider margin of does I being our

-- this, can tell not independently look would a you can and explore I we're do heavy-duty company. to we not to what we say We're continue to potential We I trucking going build do. JVs. So at going

if Bill, you order, to heavy-duty to in was So anyone going industry. the I sell an vehicle hydrogen give we'll

it just we're that is to not thoughtful with thinking think, sell And may all. at us I Possibility eye the do be we for one the industry. stacks. third volume even, attractive more about which profile or ProGen a to real could very of long-term We'll engines, margin going heavy JVs look

the That's very for all these clear. execution luck color good on projects. Thanks and Okay. the on

Bill. Thanks,

open. BTIG. next your from with your The Go line Elmaghrabi, question Mr. Elmaghrabi you. Sherif Thank Please comes question. ahead. is state

you Can now? Hi. hear me

Yes, we can hear you.

All right.

quarter, Last a that. handling. on about ones, said year? the of of up for to was midsize handling I Pentol guys handful my are and about I top a following XX% of material call given is of you about Sorry ask this and you customers small think material question. business that the trending targeting how wanted Manav quick new the at taking Thanks couple

when in because of medium That would is seven then of second of shared at to year. look months mixed. the first I year be back some the in next the large mix are XX% the -- the the customers probably sites probably think half It question. the that into creditor beginning XX% deploy for settling I large Good XX%, probably -- we rate again. half our and deployments number coming to will the faster six at over a previously

XX to follow XX sites. Or Are That's then to for new you adding new that of customers? those is targeting were up, more pedestal? helpful. said of customer you a And pedestal with existing any proxy

so -- Sherif. handling let year. me about the this do We'll numbers, I material Yeah. I'm clear in sure XX make deployments

We will add customers new year. this three pedestal

sites per coming the anywhere to kind just to deployed years between of over could customers that pedestal those to numbers make XX you. sure So clear five year are the

it me. thanks up. clearing That's that for Yeah, for

you. right. All Thank

Markets. Please your state comes Ameet Thakkar with question next question. our And from Capital BMO

for in. are you. how squeezing me Thanks Hi,

year. expected Just what's real was if sold the the was units looked maybe of prior just color could was of GenDrive just the of than bit I like quick for driving around this it the, for X,XXX. lower I smaller that's a last give some It kind we numbers in than was the wondering I year. on on kind it little wondering you year? guess, of year

Yeah.

about number -- to the we in customer talked know so in will of and do will supply and being this year, of sites construction Xx, with our and what slowed -- we I it's I challenges we be down because think really they're that the January and chain at sites the going. where related

it much that -- more the on That it of the is. delay was into was really the that's new our more where some on their was really really So customers. -- to our side really with ability it really and so -- of customer go -- facilities was products --

revenue reaffirmed guys operating then And one issue. margins. you but Got it. Like just the housekeeping income and 'XX quick gross margins,

right? unchanged, guys you targeting XX% for think I but that's are 'XX, minus still

answer to the sure make I that, get answer. Paul will let you Ameet, Paul? right

Yeah.

Let me clarify. just

is it margins rate proxy. $X.X what a I've of kind as roughly gross a talked XX% quarter So million is and OpEx about per $XXX was billion,

kind of negative, So yes, range. in gives the roughly math XX% you that in that terms was yes, the number, that the being that's directionally -- of and

that. Thanks so much for

Thank with you. our from next comes question And state Craig question. Shere your Please Brothers. Tuohy

Craig. Hi,

the on afternoon Andy, evening, and to so was good answer or little confused, question, Hi, Paul, Sanjay Kash's a I Paul.

with back DOE and lever you green you're network? successful not recycle do loan, If to need the the the hydrogen capital in

Paul?

is understand. by balance The theoretically well isolation $X that. No, probably There as could have other. one We a individual up be It's it plant itself, billion answer you in as I When leverage do Yeah. could would facilities. or you is both. chance lever either/or. we back those sheet the do a that could

say would capital Plug. going is decision to -- going and best we're everything the Craig, the to for work mix, I'm I in through So

I'm excited about So the program. DOE

is. flexible banks think what that most take about capital structure to make capital of sure positioned we to the want to opportunities, we're and and advantage even to for opportunities from people us potential and continue the news it's unsolicited I think viable very inbound and But is and up exciting a good program various options the lenders to of lowest best cost that we'll continue open us.

certainly and about to likely But I'm we're viable as I think very and make But that's the best different very decision. going a nurture the opportunities well optimistic likewise, scenario. DOE,

So hopefully, helps. that

just of X of in like position, the looked Olin particularly seen. of kind question, if if But second on than your end this months of I doing my green JV network we've nine months Sanjay, at fast the kind your is you're know guess it I don't and is delays forward track. we off lower with the completely year last and little better say, segues like Certainly a some this And a does. of these perhaps gas let's hydrogen the and sense it money-losing the if and have they contracts present you where with here just Could more make gas expected make a prices, ever liquidity going given to clean some you to bullet. than hydrogen on internal of attractive simpler better operations have after if opportunity might industrial much forward sustain pace the sense set that you're bite of to buy itself? doing maybe generation third-party out how ever that then understand, that

say Craig, is it's a all real that idea. I'll interesting

both. right. All you Thank Okay.

Okay.

And your question. Wells Fargo. our Blum question next state with Michael from comes Please

everyone. evening good Thanks,

quick. two Just

ton assume and that just to we Just day and wanted trend check for the to CapEx million time? over cost you steady to of then 'XX. how holding on maybe $X expect is hydrogen per in wanted plant. 'XX that Thanks. still to million per see for in should $X also And what Curious

And one? second you is question? Sanjay, do So part the to the Paul, want that first take

Yeah.

Michael, to view, point no no Obviously, right? higher. that CapEx, stated at the So Paul? time. change The just in Olin, integrated really plant about feedstock with is plant, hydrogen that to green JV the change of right? hydrogen likes that you number this lower But we have reason

Yeah. say would this still we're in targeting year. And CapEx I $X billion

to a good we'll payments have I'm We're CFO. year, scenes, of the working through programs things. and go the behind trying to being we accelerate the on trying the timing better defer As visibility

we'll focus. that our So how together in the centers, timing see all comes but that's

Thank you.

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

next will to Plug I'll to investors from of to come and be Plug in of members be team be Please for be us. us Well, and analysts. talk will available rule I will And many talk and know CERAWeek thank always. other everyone. Sanjay to there. many the there you, week. Interested Houston up

So to thank Bye soon. you, you now. everyone. Talk

Have that, with parties a evening. great today's All And disconnect. you. may Thank conference. we conclude