Plug Power (PLUG) 9 May 232023 Q1 Earnings call transcript

Greetings, everyone, and welcome to the Plug Power First Quarter Earnings Call. [Operator Instructions] As a reminder please note, today's conference is being recorded Tuesday, May 9, 2023.

It is now with pleasure that I turn today's conference over to Teal Hoyos, Senior Director of Marketing and Communications. Please go ahead.

Greetings, everyone, and welcome to the Plug Power first quarter earnings call. reminder, Xth, today's XXXX. a recorded is As May Tuesday, instructions] please conference note, being [Operator of It turn to director today's now conference and is with over Teal pleasure Hoyos, that I marketing communications. senior ahead. go Please

Welcome you. call. to quarter first Thank earnings XXXX the

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

and results cautioned or as and including, result risks current XX, to quarterly Form time forecasts, forward-looking future read with on and discussed fiscal not reports ending current from risks performance of SEC. the materially management not as not file be year other factors, and performance XX-Q Risk the the we under reports various December on rely are and and well XXXX, such our differ limited to assumptions the discussed Item annual report those but uncertainties uncertainties from cause as on expectations, statements understood of Such should subject time could XA a in to Factors XX-K based are to significant as Form guarantee to statements, for or are that unduly upon or estimates, However, actual a of projections beliefs statements investors and the results.

as do update the as only date this and are the call a statements after intend any to result speak of or information. or made, undertake new which statements forward-looking not statements forward-looking of These we

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

the Good and Teal. you, joining thank morning. Thank you, call, everyone, for

items. certainly date. I XXXX XXXX. One had call, morning here. about made the put want excited filing is us this we conference to two where It we a got talk of with the begin I instead Before We that mistake a

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around plant those be that. We're large revenue there's when megawatts we the about of I'm system opportunities, close electrolyzer out XXX many recognize and next happy the three talk months. on sure ongoing of an Sanjay more to in Q&A XX to And about behind order, selling liquefiers a comes basis. closing will times that. In

add, of opportunities revenue billion pass, the $X.X $X.X we margin million, increase achieve listed be would still those do $XX approximately an have to come beyond items to should revenue these I to and gross above for if about also year. XX% And not be billion. the in all

since at important, established. has look this highlight, very you variability to the it's application like I'd little slide more that business, when really is Finally,

sometimes important lost level, of seven outcomes is in it of gets missed months. range application the we we those the In some and business, this did experience of high share others, early level because of in chatter. predictabilities. the years, just During exceeded challenges a of us our some methodology we high clear, confidence The years very the next in Be really our projections. gives we

the doing way leading Plug we're what a building constructing every actual is company No products, terms doing things of real the field. is other day in and plants. in

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our is products. our the range learning customers really our products more But and energy we're more of to Lastly, scale unparalleled industry, how any of efficiently competitors. important, than our like rapidly in

from for facts. Once shy one no away like separates Finally, building again, I Plug. plants Sanjay, real really products is Paul, building questions. are I to the your available us. don't now and and want It

you. Thank the question. from instructions] your our Andrew question And line of of Percoco first with proceed [Operator Morgan Please comes Stanley.

so question here. for much Thanks my taking Great.

XXXX targets? you're a for I and might plants So first mean ask what question the to online? you'll few might of do some $X hydrogen qualify and ecosystem kilogram? XXXX bringing of your whole around that just and around interpretations additionality. some that want Or that the for What treasury and first, green matching per you for think your mean the IRA And deliverability, still hourly

in last administration. of And I've of step remember, back talking and IRA of purpose take two folks and to I'll in in folks administration. climate, really is lot is go the a the the D.C., that. national further the in ahead, driving months time, primary jobs, that than thinking So security. And a the really the spent that especially the

when it's the great favorable that approach that, believe I you interpret the see takes you renewable had in that, discussions, interpret of those very if my DC, a which deal Plug on influence European to energy in can directive -- From look has very, support. certainly at you that

through supports electrons renewables, the really And generating line generating look In Springs, come think do. resonates my on. I'll from examples comes that house supports at Power. more give renewable from doesn't you going I buy That's I way electricity Plug -- energy. I administration comes I Vermont will Fundamentally, generating from from where Saratoga in two the Vermont buy that's my Power, The power discussions, matter NYSERDA time administrators. house what's ultimately more Plug It national grid. it, my that believe with every that is that I in electrolyzers. what

helpful maybe the That's just Great. context. trends OpEx And switching quarter. some in over to the

$XXX had you mentioned right quarter Paul, is of XXXX. million OpEx the run think, I per rate for

little the year? for above came think the that XXXX. in do bit should in operating with You feel you about guidance of your How rest a comfortable trending still first that we income And quarter. through the

Yes.

they continue consideration quarter they $XXX with be to think structures you we had in that do So Should million, we of than I do better as like see, can was been to that in biggest I and that happens. $XXX talking about earn-out And acquisitions. in the mean terms our had delta expected. if more only have up. we of we'd the set accrue that million. pay But would when the they successful we to what

to that's primary it, it $XXX the So a look the rate. $XXX problem, delta in But right think I at for you million the run of is the and high-class the if was year, quarter. million the balance

for thank you Great that.

Thank you.

for Thank you. question. the please, moment, next One

comes James Evercore ISI. Our West of of the next question line from

James. morning Good

you good Hey, morning, how doing? are

Okay.

for to wanted I hubs Andy, So talk minute. about hydrogen a

or make recommendations in Texas, and Los What then commission from the buy fourth as allocating some to you from a be course, Angeles play to so I DOE been on that's at to believe or close that submitted really obviously, in plug capital. we're the third DOE the that California, got, fourth process? does and quarter, DOE well. going build-out, as big far know -late the Given Northeast, should of start the role the and what's applications there'll we've and point

to thoughts that. I to green for of love know hear I'd and market your have establish hydrogen. we end hydrogen production on

hydrogen. in been on me, So watch NDAs has every to because the hub at Every levels. that by site I'm different I have James covered -- Plug on everybody mentioned engaged keeps reminding you and

West them, York plants going I engaged hydrogen with our expansion Leveraging hubs. mentioned Senator on our the of Manchin. plants such as are our of there New or the things some many activity tell in hubs. has like hub, would you been And name publicly, in engaged that Virginia, hydrogen

plants hubs. both many Our especially stationery are in peaker our products, involved for stationary, our

to And money November, some sitting I So person frame. here, my filtering till late expect yes. don't time James, 'XX, early his start government dollars shaking real start like think ramping out really with December he's me I you, affairs head, and in 'XX.

that's So the…

Understood.

involved will Good. think got now well. the guys pushed, Okay. have faster And it's make start you long maybe related as follow-up learnings for more you of But you'll from to What are the facilities -- in extremely part. me, going that the the then startup the kind keep as it that efficient, not the of to there. time hubs be key is start-ups But a of line achieved check? that Georgia additional

learnings, probably James. We XXX have

I sign seen EPC contractor time In you most ahead performance. one, the to that can you think Texas, for a where sign I repeat. know going contract an the praise And important Texas. statement on EPC able we've been in and that think, and what it's have see of that's, you won't up people

cost much. I probably than tons. day the only at curve that plant XX cost your from of be overall I doing XX% scaling, less by expand too cost typical we'll increases per from by XX kind costs, tons think XX%. XX don't we tons construction to It follows when that tons think it it we'll look itself, this going your be a to XX will just and

Texas on really we've plants you more simpler. to that's heart, smaller like anything? could plants I we're I So key New the what think had. but There really think, I be want like and on that go infrastructure I of much much large. is of of some But that's are probably we Golan one York found kind where really But the the add think on, could Sanjay, focused learnings important. and

I with agree it. that's James, that. really No,

got rather right? And of benefit. [indiscernible] all it, and allowing And understood through to I components us really has to said, is think now learnings you a as that think material. the Andy scale tremendous manage time than we Georgia, go and a into

Sanjay, got it. Okay, Thanks thanks Andy.

question of next Manav from of Gupta line UBS. comes Our the

kind questions two and of have they're related. I Guys,

to going right ask I'm So them upfront.

good morning. Okay,

Good morning, sir.

in backlogs something very potential negotiating release are Pacific, that says project final of in gigawatt. press opportunities stages states your and you X interesting. Asia of So Europe It large-scale U.S., representing

XXX-megawatt So if electrolyzer contract you with that? get we a more on on can is And Uniper. some March details won build second to a announcement,

process bidding product of very competitive understand, good have out you competitors. was this you there. I As kind your and It were a selected a versus indicates

Uniper. could X you talk announcement bit March about the So with a little if

ahead, Go Sanjay.

Yes. that for Again, thank question. you

on First here of Europe. North we're megawatts XXX-plus off, in near about at when opportunity in a the of another in Asia looking over opportunity electrolyzer side here this gigawatt looking term, the at XXX-plus opportunity megawatt We're we in of booking We're talk looking at America. megawatt house XXX the Pacific. opportunity

So please stay tuned.

contract here Obviously, in lot or gigawatt them some near in In of XX what days. And in talk about electrolyzer when X, a next outlook we we're the plan it. of term referring the cases, course actually we're in actually some that negotiation. on of really over the discussion our to that's business. plus bookings to the certainly cases, about of X close we're We all X having

contract? details on Uniper the Any

Go ahead, Sanjay.

of look, things -- the Yes. Again, think I key -- one

to Let I me am -- going start.

is key And see knows when customers, people knows how customers, when -- that on that One projects. Plug scale, to how competitors. not focused you to Plug I of engage Plug look with the Plug do look really knows to think how items and

it And our other versus customers, separates from any advantage customers them, many have take and Georgia significant that a differential really we I plant to competition. through our when taking competitors. been us the of us provides think we show

walk in MEAs. see you actually making When our Rochester, you electrolyzer people and stacks factory

what what well, and that market. can can't can we customers. on offer. the provide, scale worried about But We big That's moment. get You on focused we're win We us too else. really deals. we don't see we focused worry competition at why really about anywhere We're -- this our

Thank you, guys.

Okay, thank you.

proceed BTIG. from question Please question. of And our next your comes of the Lewis line with Greg

morning, Good Greg.

you. Yes. here. time, me you thank Thank get squeeze Hey, -- Hi, good in for morning. taking the

that XXXX. that. for JV announcement recently, is made in the SK the we with incremental build of little initial I Korean could with around hoping projects really from CapEx then Andy, -- was So of kind I bit color you guess, start-up maybe a around venture? of -- this this And joint see

doesn't products for been good will years the 'XX, of highlight we've there high letter, time the the at plans be the two of where cost, Korea exist year XX agreement because finalized for in And now SK fact with areas on to then and XXXX, on focused In IP XXX JV deal today. XXX Greg, Sure. was a our And electrical of this XXXX. our of over activity with products stationery final starting last working every year with that stationary I the build in done the stationery to for products. and we're grid megawatts. investor December SK, 'XX the is megawatts

shipping is That $XXX probably million, range, in the ramps from the Korea, itself, Plug. shipping trailers jointly the JV. both cryogenic factory, will $XXX to we We're X,XXX in this of the to $XXX doing this will split which be deployment us shortly. JV. in units modules of which for million in We're uses ProGen million the We're be really buses think with beginning the of between type over just which already year

our We're electrolyzer engaged projects shipped. projects, in being electrolyzer first are and

time, So powerful on wide of JV. range going this Take a bit of really little be a together a accelerating. we're basis, very but very, to is

look, with working of for enough event, was Korea. nice President but deals I went our on Chairman me, was and was the that think South if Chairman go you the I to in our Australia to

relationship. I says about think the lot that a

epicenter the It on just going want be it Transportation did to seems there. surprisingly, Advanced on in Okay. Clearly, Conference. was Last green the like seems vehicles little Clean week U.S. the like not the A to a in Great. It future. going seems And of network. really demand California I hydrogen of foreseeable is hydro the touch for to lot going there. be the is a money then hydrogen, going of lot

think get California a that versus we really seems I area or California production be shipping coming we're or more you more power as key in is York, a we diversified to servicing but just product around -- have is renewable As that. the green where there? the and about and lot realizing in electricity going plants just of Should thinking about green network Southeast, Texas, footprint like from be there's to it New just demand hydrogen

be creating demand I'm talk and than should going plan like on. but ammonia, mixing that, e-fuels like said, nationwide like for pipeline, in larger make applications well to one Sanjay let answer we I'll it going activities Sanjay Greg. California. overlooked itself will I'm industrial being our The as much in applications That the be to It be have probably the with California with not natural gas other ramp as will comment. probably about going let hydrogen

to right? of demand is come mean, Greg, on, some spot I like applications you're be lot going mobility going that. and That for is things the of to where a

already at that this One, dynamics going Calia through location the do you going through And is about process identified is, going move project. a permitting California have of center. one looking we as demand all how while So we that have we're [ph], PG&E, it's SO a it. that the through think to we're

ends also price have up longer electricity, high you many and a taking the situation also of states. where have other very permitting than You a actually

a So looking having really that do we But with that's a in about dichotomy deal you when California. how you've many and projects. how you are got that, at multiple think bit said to of plants build actually

it might eventually in area mean, West be I California. that of before. to looking the even making support neighboring the able We're in the done we've way the multiple, California, some even okay, Texas even because end to that to all state Now up opportunity at

as renewable plant that distance possible we is how hydrogen? pointed projects we we at plan a other up the right? of it it our the gets what It delivery can and ends that cost does State What to look lowest support down make neighboring in into that the California coming lower from see as and cost peaker comes demand of So the California to a really states, to even really sense get? California. out, electron meaningful locations is even And rightfully actually build market, it making you is

for Super helpful time. Andy. the thanks. Okay, Sanjay, thanks

Greg. Thanks

of the from Peterson comes question JPMorgan. proceed next our with question. line of Bill And your Please

morning, Good Bill.

and on. I guys. to the morning, go to for team, you wanted morning, the to speak good just Hi, understand. Good sure with year, nice Andy to guidance I make

I said was Solutions. it in think kind talked business. you Energy But XX% of last you about largely the quarter, mature

$XXX stationery. XX%-plus I electrolyzer, think million

I call around cryo with $XXX I rest think think is which it fuel so forth XX%, the you and that million.

you is where could billion help does the guidance. the in in does it billion? $X.X in come it changed understand what's of difference? what kind primarily electrolyzers come Where us it at and fuel? $X.X If or Is So

what Bill, to say look, to tried really tried is, -- be to ability hasn't So I've predict our to perfect. clear. been I What obviously want I

time filed, refiled So of last going $X.X we -- sure And be been XXXX make working we look with the in the the I risk lots you think billion. to through it's it's after guide. Street to lots is quarter, and if and spent at where to enunciate

If items. the kind the wrote key look four here, chart, you Bill at team of I with

That's containers it X-megawatt we're electrolyzers around, $XXX million. shipping of probably this XX, one that call So year. circa is

sure a It's a for orders it. we spent it. that's if there. Look, lot And part we execution of time the on big of making have

plants can revenue. big with difference, at $XX associated plant, probably the in look another is electrolyzer you you our If circle and Bill, electrolyzer another million

lot of to you two, talking Sanjay in XXX. to he's probably and then difference. will looking has quarters late sell the ship, liquefiers, to XX, those you're a of XX that between And us looking the he's So negotiations to three get

there's it also the this -- really will other And slide, resides. the that but works I in where all on did fact highlight that that's opportunities

it happen do was wanted numbers the $XX all quarter of has really I of about And is lower the for in fourth to really projects, the lined with in first I lower look, couple I because a case, business, from the up. quarter. business, application example, that to expected whether hope investors sure they helpful, our knew that you timing or this how If Bill. do the chart the make wanted million traditional variation Bill? to to case.

Yes.

about that. Sorry

sorry about you about -- Sorry, that. talked

-- raising raising about talked You additional financing. potentially additional

at into non-dilutive of at means the as in preferred there But and means the is about this talked preferred DOE you're raising, mentioned you second next as what to the come more I You ABL look looking or loans doing Is the half you guess, probably and possible. the presuming capital the half of year. second year? at of most year the a

Paul, to I'm it back. I'm take here. to Sanjay going to going the a step and hand expert,

to people lots have in for Go ahead, share, we themselves, may people also Paul. the plants a And of Bill. We have take want Georgia. invest who in example,

on I I non-dilutive. mean, think touched and first And obviously, foremost, it. Yes. you it's

capital. strong that second we're going and the through referred more to, work few unfolding we plants said, puts news you're that's it continue come. there's Second position next that balance But of is at portfolio is as the But and that's third and you months what incredibly to is this and optionality, doing and got as pace great capital. good scale, basically ambition us breadth forward. as look we we that in leverage probably capital, combination we've of that the invest It And parties interested. a portfolio are recirculate sheet to are in and when grow see to of more unlevered an the up Andy to will have a solutions hear of half, the lot cost of to when a move in a we of be we're Andy and have working again, the toward profitable flexible

thank you. Okay,

Bill. Thanks

you. Thank

proceed with from Research. comes question your next Our Wolfe question. line of Please the of Alex Kania

Great, thanks. Good morning.

Alex. morning, Good

amount or guidance run and the you you that what there a additionality means. be IRA terms -- morning. think of maybe Do either of bit a at you guidance Maybe of would to or could pent-up characterize I something kind demand the like another get that that the or kind decent of anything able of take or like Good matching once that. way in

wondering of play these days, how we kind incremental just have XX just would any resolution I'm much beyond over the up more of as you've kind that IRA if a opportunities that, rules. So even into of you're just next once about announcements getting you talked seeing on could see ramp in the And that clarity.

important So And kind Alex, August, just policy is waiting. have the very I think folks it. comes clarity time you any probably you September, directive, it be And to be And that similar up uncertainty, jobs for the of companies have frame defined to think if more I they'll to [indiscernible]. scale, and of export. create more allow allow will and States European I will United think because

that the think outcome. be I will

If many will they're I focus the there but focus very, think very restrictive, European focus. for more lot than I will companies a still be more think of activity U.S. be

too the who's think the have be the purpose. when know of with we're about if People are this are industry regulations honestly, to good concerned IRA the think to be going I about growing that's comes be about concern people in in, hot which I economy. regulation everybody deal. honestly, And I There's I -- quite People tight, D.C. is outcome. America going job. think over to sitting enough big not here it to the quite is handing quite happy. is -- about I to Chinese, a me So to fortunate know going and People its button. concerned the table at the going a are don't concerned defeat climate. are would

decent thinking maybe even Or that for of for to guess. margins have that of side? kind gas the tailwind as balance I seen previous Certainly, maybe report. momentum come kind numbers gas we've on about of the seen of Great. a you then a of offsets Is Thanks. upside? incremental down year, And since the any the the earnings just have prices incrementally kind kind

I'm going take one. to Sanjay let that

mean, looking as there said, is incremental lag I and benefit year. into benefit. we right. And will go obviously, is, that There we're the QX short well, always lot being at you as QX some it price the that a answer be to we're matches going taking supplier time with gas yes, quarter start right? you're used Alex, look, actually question that Yes, incremental think, So So an is to I of our right? we've that's see ensure as your to this to by how a QX, benefit.

very much. thanks Great,

Alex. Thanks

And proceed your our Capital BMO Thakkar of from next Ameet the line of comes question Please with Markets. question.

Good Good morning, Ameet. morning.

Good morning. Can you hear me?

can. we Yes,

Okay. Great.

Just real quick, be level online. I of just wanted on lot will you since set CapEx production a more to kind on bringing

just wanted than $X make $X about for year? a standpoint. I that the quarter ratable to think for said had less bit looks guys for was of number right about CapEx that sure to year. I you the billion It kind like billion first still the little number from the was think a

our that's target. Yes,

pretty good close the spend. the of the big terms I is news think plants done in are manufacturing to

green if it of around all, balance hydrogen the platforms. not predominantly, the So is

So that target invest our continue the to is agenda. and yes, to advance that's answer

like And that through 'XX 'XX. Okay. under dollars flowing mentioned Andy had Great. the until the then I -- I program big earlier the or wouldn't think guess, DOE start

in get is bridge down that So equity something at a we of Or options there? of like about terms of you're in or you of other looking ABLs of contemplated. like kind some the selling individual kind should until is plants always kind the we think the

that own hubs Yes. built let think rapidly much activities. I'll is and as I the as Paul green don't hydrogen being And our out. view as plant to They're available -- comment. want Hodgin possible possible. as really our as I equate don't as separate we

they that, people do And like oil plants investors industry. that who wells, deal so having are in in who in big

deals we're to meet and get it most sure that can. we loans. we of be some to to going independently. correlation to finance We're hubs the going do attractive And it of going is want model We're really, between the do business no folks. financial really really there's the big. make Our we But some with

to want Paul? You add,

year. multiple multiple as there's to things also DOE. industry could all around balance our talk building, the the options very as will going past 'XX time, interested on working of different specific about are conversation well strength well that same lots a clarify, two ABL that the year be working this we've we're hub specific and parties we're of to in Plug, There's Just the the and sources. But from partners with sheet portfolio fund conversation at not that that processes the our So you loan we're mentioned capital we're separate that a this that working. and and 'XX. them. is DOE got DOE activities, from with of right? the apart And of We capital And

want I clear. make So that's truly just to sure

so Understood. Thank you much.

Thanks Ameet.

Thank you. [Operator Instructions].

Our Stine next Eric of Hallum. proceed with your Please line of question. question comes from Craig the

Good morning, Eric. Eric? Hello?

Please verify lift is open. line line your your your Stine, function, Mr. verify lift handset. your open. mute please. Stine, Please function, mute Mr. is your your handset,

session. will proceed question-and-answer with We the

Rusch Our proceed comes next Oppenheimer. Please from the question. question of of Colin line with your

Colin morning, Good

Hey, Andy.

you operational before feedback talk what the are you're and one little a can guys on of to close meet you you getting about bit deals. the finance metrics duration sort need through facilities run you potential these on to the working providers, of will ABL As these folks need

positive year, the path we're sheet how very our margin in cash the as we've said we're we're metrics. into it up opportunity given the Having is, is operating look publicly scale growth you that trajectory. given traditional necessarily trajectory balance that on, The strongly early big to flows, without meeting when that, confident talked that affords next news good on, about, And moving us leverage matters. Yes. that at

of on a haven't operating and that more as constraints such put us more that you such opportunities year, significantly -- flow, And had So portfolio move back. us is bridge traditionally real institutional the that, know, as leverage key we move. it up, then for as next into we cash opens a lot into and the we because of traditional hydrogen for in we metrics big step I green balance terms those have think sheet a big

term. of to too that So, much about and so good opportunities worry so in far, short the lots of without lots having

Okay.

perspective, And that just much finished get to ramp you working manufacturing, the and to are Okay. what up that quarter. a inventory a of I guys sense this capital number you goods posted be are want from needs then capital in working how as just going

Yes.

we've as our very talked quickly So publicly, we've specifically And product our been stationery ramping platform. electrolyzer.

was going ship quarter production And first the electrolyzer So associated of that. the with specifically products quarter. that doubling starting this quarter. product, the to second quarter about talked our to program our from this the delta we're large-scale stationary we're be in fact station first We've

going So will to we -- level I you're think see that out.

as expect down. leverage we of we the actually And go the it the to we anticipate, move balance year to with

we're relatively So a on for the actually expect capital standpoint. whole flat year, don't balance of but going down that the a to not slightly we be year-over-year, from working

helpful. Thanks That's incredibly guys.

you. Thank

your next question. line question Please Dendrinos proceed of Capital with comes from the Our Chris Markets. RBC of

-- some a mentioned ops later have just for positive you I target all breakeven cash this year, Paul, quarter. maybe morning. you good think year, next free flow kind of Paul, mentioned you guys. early maybe just and morning, fourth beginning Good

versus you about quarter. you I there, of you maybe talk the of this can what takes the So PPA out kind where margins particularly soft guess looked drivers just I of some the area pointing maybe are guess, and today? kind of

you what next are from to ops So free you the flow breakeven positive end year. gets of where year cash and today then

first things. really, we I when example, on -- it's equipment. there's of at do as an foremost, accretive. QX we look and And But make Yes. guess a you margin positive number

equipment dollar not of incremental growth every is if I coming is equipment So sales. majority from that The XX% positive. of sell

those fact with the that to coupled plants those of we're going the leverage new that, and ramping will and be profile. those drive investments margin So scaling products

to So plus at when and of $X billion, at and $X.X traditionally XX% range, in that to equipment we've balance sales. And pretty scaling look billion accretion. be the so XX% going that is year substantial product the the gets of margin or function change a which step hit roughly margin, you in you

a to efficiency. plants, fuel. the working partners fuel in things on year, and that of turning green on the doing distribution the paradigm. about about hydrogen gas, ending breakeven lot these terms with We've run networks is logistics a year drive talked the on on quickly into talked And our piece Second natural the the changing of abatement next we've we're moving rate field publicly and there

biggest are two sole those drivers. So the

a -- last then concentrated And second big and would reliability make just very -- third I strides and service investments, I to continue that, effort. guess, they say we on have to

PPA year. growth we're of scale percentage as about. and so be It's we to be for as what and we fuel the this curve move product predominantly more and However, we will a that do more equation service the and smaller talking that smaller and forward of be balance in going product the will that more

I it. Got guess as follow-up my here… And maybe

Paul, you down just should of warrant charges. PPA because maybe mention the is

a charges. we Yes, have lot of noncash

year-over-year. and so million was QX. was or QX And $X so 'XX up in $XX year It million in this that's of

fuel particularly associated the affects on terms with it. about the context, to million holistically. some million at charges And So $XX of then $XX run has whole, in just association that's a PPA a noncash and It charge. we customer noncash of so with quarter the everybody

to noncash I why leverage back the margin growth, we I'm excited to the that's confidence into rate gives with year. move incredibly feel next run numbers me about that confident get that on those as and So

Got it.

the build-out on letter of as Okay. qualified the under it Thank here, front to added shareholder you. page reading include a And like maybe kind guess then here, XXX the maybe of my I you looks follow-up of TPD just construction.

loan, the what loan kind of treasury this ABL you that And hub that then can delaying you clarity you true? the I think some little about, a drivers? I coming, mentioned Are guess, year. earlier DOE bit? later So in the coming year. There's some talk are is this A, maybe announcements

a coming plans? coming timing? guess, Or maybe down slowing might your that guess, to is impact you see I So things how are just, are that that function announcements just of these, I

let me. Yes. Andy, So

that's for commissioning right? what to wanted said, change from changing after no to long granularity we're in all, not any where anything at of -- it There try in go as we're takes we've right, Georgia plans actually right? full no, to terms Chris, provide how not to So learned production, construction I from the was continue waiting just construction, does mean, with number. more if more commissioning, try anything, to Andy we of actually we you that things the to that to what learned But was from granularity we Georgia, tons XXX materialize full all particular on guys production, that. more for it we getting tweak based than what path take, down Nothing made us to try do really and look provide to there.

Got it.

Okay, thank you.

Thank you.

proceed of Our the Harrison Kashy Sandler. question. Piper next question Please with of comes your from line

Good Thanks questions. for the morning everybody. taking

Good morning Kashy.

morning, Andy. Good

go to And options. if us to project back thinking financing? before multiple of XXXX to financing a transaction give want sense from you perspective any, XXXX what I Can a catalyst? be So milestones, a we need can a should be you as get then about the met or

Want Sanjay. to go for it,

Maybe Yes. hydrogen on this the side project take can on Paul, I plant.

level that talked but let's I guarantee is say as off, stable Kashy? our Paul So once about, here right? months, Paul we program, flow there a for a we right? talked plant really highlight couple looking think as about, ABL an First is about our can loan opportunity. project financing, as And So of things, underwriter, running cash is then XX talked we're at what to our

a down -- coming debt do ratio number really debt open PPA way about ring a is plants service really thinking of which what support about to Piece about to even perspective think to And of to that are up path really a also floor will that us were kinds are of the be the can sort market, fence solution on lot how it going pricing hydrogen, can piece at plant, looking two, plant, from that the coverage of once like number now is one. that the also you different you if this thinking we allows these online, right? to we right financing either go

-- think beginning had When we have space, the open that XXX% we what financed. of encourage think happened the Then cost it up I led this in was actually solar of with everybody really about equity driving in right? and that And is we I IPC. in PTC solar market wind you had capital down. That the to the also financing the wind really and industry, the conjunction to

continue down different what best is in as that's the coming purpose that capital of one mind We're drive growth of have us that with I the the think hydrogen the space and growth we to discussions like the the road. you're So going as to cost something well. here lowest multiple see said, ahead substantial having, in to Paul of sole and

So how looking we're at that's it.

for you balance driver then Sanjay. that cash high or what's expect for restricted Can unrestricted would the you Thanks And a maybe you. years? Paul. the refresh to Thank the quarters on whether coming balance question behind cash in release sheet us and on a

Yes.

island space, of -- deals banks So we a remember, the but lot in do for for those programs. the of long-term of we material I a monetize lot that the equipment the benefits

deals. of the we as and biggest times, commitments, in so actually back getting XX%, example, we customer cash post have get customers XX% to signs lot an those of successful And who We've to have, into the -- upfront. a been cash we

is residual. at layers And so that the kind the you're what are of that balance adding are looking now of

we see The news ITC is the of are to starting the the benefits RA front. on good new

ITC closed project. deal tax because us they the benefits quarter. right, more we paid of So first And this the and yields we've benefits. really value majority our targeting on give our structure. bank secondly, those the less, deal that actually the XX% XX% we deal. first X then That One, We're get

about we $X.XX to cases, of some on So debt, a payback on year we per that And don't in fund of to can the $X.XX probably have that operations that any our near-term that as the cash to use we we're dollar operations. from released deal XX%, XX% releases dollar, us, now $X.XX And on in moving structures. current as well our the us. all to

expect that change. I to

through just we positive as earlier, talked As cash towards continue and we flows. move work to

towards move the released more and down more institutional that term. scale get more of financing traditional I and near think you'll see in and

Okay.

Thank you.

question. comes line next the proceed Burwell of Company. Sam Our Please from your & Jefferies question of with

How morning, you? are Good Sam.

Doing case expected on to on there's line. delta revenue a gross million end. good. the margin It at Wanted the and $XXX the on million line, Slide X, case. delta the in something squeezing Thanks lower like me the for $XX on financial projections unpack a looks

So I out call that then, implies say. about on the incorrectly? with am like associated that the that that's that let's a and plant? the margin guess, right, I electrolyzer thinking electrolyzer XX% liquefiers namely Or items the you incremental key containers, the Is larger margin, the

XX% right our basis, somewhere of I the with associated same about And in is rest the variable a operations. on around on it the margin. gross inefficiencies would those think

but can called Fed Understood. one rate one Okay. of That's out low project like that few way certainly then DOE maybe you the a last at capital financing. in go. least the I helpful. between ABLs. think And financing and any I you on quantify had is difference hikes cost the was I know there -- single digits, mean, to guys

it is that a going rate? it So to costs be to that? DOE DOE overnight to the green hydrogen? wants below something because spread risk-free the Is Is subsidize that loan the

Yes.

So nothing until is I done. it's done mean,

if it's you so the is give question, not that hard range. answer, an exact digit of And would in tell you, high not but I to mid-single digit single out

would financing right? project Paul, are separate the act, add, two and the also ABL I really

be it not they're And could be -- And exclusive, necessarily certainly could right? both. Yes.

it. Got Thanks for gents. color, the

Okay.

of our Caselli the question. Please from Thank line you. proceed And final of question your comes MorningStar. Brett with

Brett. least. not but Good morning, Last

internal of of of tons to XX one is clarify. sales? is the Andy. in the there, XXXX sort of Thanks, and I respect just Plug's day wanted for guidance that third-party any interest leave time. just Or that I'll it all liquefaction in use? the With at per to

add It's all third party. you want that? Sanjay, do to to

discussions we Brett, multiple speak right we as now. and live No, have absolutely. it's third-party And all

else, Anything Brett?

set. I Thank No. am all you.

All right.

that and roadmaps about and in we in the I manager hope do call where talk $X.X see we challenges we've to you So expect what watch have I joining folks like appreciate a hope to again everybody what's opportunities. clearly I XXXX. video morning. this and would And Also plant Baker everyone and do billion built that step Georgia. the I back our to remind take

that There's to there's else plant the There's Georgia to reason has that a to Journal plant because nowhere Wall economist a go. they Georgia see Street that had go. to went nowhere because to gone see else reason to

it's its building We are doing projects. real whether things electrolyzers, whether building stationary large-scale today,

ready Let product for you, We've that's built factories, amazing an We're me in tell talked project briefly. and economy. this only about we we scale. and the explosion hydrogen

year year So Thank to this for I execution everyone. you, company. our And point and a listening want thank huge is today. you inflection the for

presentation. does We do ask conclude And participation thank and disconnect your you everyone. that a your lines. today's you day, that please rest for the Have great of