Plug Power (PLUG) 9 Aug 232023 Q2 Earnings call transcript

Greeting, and welcome to the Plug Power Q2 Call [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Teal Hoyos, Senior Director of Marketing and Communications. Thank you, Teal.

You may begin.

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

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

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

international array an collaborations, joining platform. extensive diverse for quarter encompasses This Teal. and government entities, process developing our call. backing and of in Plug’s financial our everyone second you, And thank of hydrogen conference infrastructure. unparalleled fuel Plug partners you is the products, the Thank from cell robust

reveals products, several noticeable revenue outcome over $XX our Our than launched million growth second cryogenic our recently more year. of previous a in rise in threefold making quarter the sector, which in garnered particularly

are results initial Electric megawatt international milestone from positive SK, our reviews. HYVIA heavy commercial in vehicles joint venture vehicle partnership bestowed Renault, Our Magazine, of authority the realm the the scaled Vehicle positive first well. XXXX with commercial our joint as yielding year venture in HYVIA Cell as to of Through van. the our product be electrolyzer Kilometer collaborations a France, award renowned in the significant a achieved the with Through upon certified Fuel Master Hyverse Korea. garnered

capitals strong robust government has governmental backing with Washington DC Seoul, to key from connections spans Our and cultivated Paris Plug across Helsinki, authorities. Brussels, global

Given and change capable we the neutral analysis vital offering insights rewards policies, climate of energy with on trustworthy present. is the reaping proven experts impartial carbon policy path in towards have governmental the -- alignment This strategic world. a intersection ourselves as and

with IRA dividends margin gross American is as company, tack manufacturing a under we into provisions incentives second The We generated American IRA $XX in to hydrogen. during IRA. increase attributed dollars advantaces manufacturing promoting further the credit to the an the As anticipate Plug. Plug pay production products within starting the million quarter tax for along made the to

financing of the second of sources facilities. dollar network. our the round $X actively secured expand multiple non-dilutive generation in as with Program the final green diligence diligently stages have we DOE’s capital billion for of hydrogen Plug we due Loan is Furthermore, Presently, global project office

project for final sheet assessing framework facilities solutions [launched]. alternative major this various options, corporate for working Simultaneously, we're We project processes infrastructure, and get through including financings. have we're and debt ITC and a to structure financing financial term term institutions, sheet, approved

the feedback our advance only gigawatts of been potential not process. also production had potential with X.X of touring customers square by factory Vista personally a nature this upto privilege else's internal were our boats now clients. our that our integration and evaluation of the Rochester everybody by facilities. facility they scalable but substantiates gigawatts infrastructure astonished as foot quite And Tuesday. customer because support from past MEAs, X.X Lastly, a unmatched we I’ve Initially facility, XXX,XXX the they've manufacturing honestly, our designed to at

Navigating as scaling set hydrogen of a plant America. surmount these for Additionally, which on for presents serve we're distinct our challenges hydrogen August in challenges process largest an in Plug. XXrd, Day plant business Georgia of and ability advantage our Investor the hosting green our the North that’s own saying its to

One's with XX% shared continual The expanding when is endeavor valuable customers gross margin concurrently introducing and products industry a quarter challenges. and readily mastering An our that our one-time see of developing expansion. end has factory is the we this Throughout second demanding. it been margin than XX% leader capabilities, over better excluding apparent differential with its me of What's margins minus the provides XXXX, the been the comes journey new rest charges, advantage. the been of will of not construction share recently would've in QX. in challenges, truly array undoubtedly hydrogen of plants,

for investing At prepared you are efforts questions undertakings However, for And yield to address those in questions. Paul, all open I and will Plug’s point, the this substantial benefits I may have. that in any we we're believe invested think Sanjay firmly success. these

Instructions] [Operator from Bill comes first Our JP question with Peterson Morgan.

how the but there miss the all, guidance related to me U about know Europe? things? Treasury going the PTC, a some forgive in from would the this compare news so upcoming on if I like the matching I we I some and release, plant should economics unfavorable, be a And IRA. guess past, when expressed you've plant in the talk confidence get to hydrogen in we guess digest first here, it forthcoming. things and of without some to to between But it seems additionality positive I And wanted resolution Lot was be and US if may

the answer going it's -- to will And from the part assessment be are between let House, discussions It's the in in very can article I the that with with me at consistent that the think your question. was energy a regulations is I was US. there today, assessment by reasonable guidance, versus see I of cost end. cost the in in I in we these think the senators, that We we've differences if we with that guidance what people had many think which And people will tell good Bloomberg, so of the September. look White and there energy many our plants the first from Europe

for hydrogen I'm about itself, take, you going So about generation talk green if think if it, transportation. you to without example, and liquification,

in at think kilowatt talking to probably I Texas. $X.XX spot around the $X.XX generate US you're hour, like a a at

about include If would transportation. cost cost -- the include the would of of production Bill, that liquefication you think Europe or of not and depreciation, the cost and

a So liquefication kind that to probably you adds to facility gauge. just of $X.XX, give

Europe, competitive hydrogen make PTC structured to natural the cost with was In PTC, the gas. was sure that with obviously,

a cost And hydrogen I in of start on really goal natural liquefication, best probably which the be around, realm that's gas. you customer case, will the at transportation, adding the of site to about $X puts think when call talking for really Texas, it, the $X.XX IRA. So you're which

work That's think look hydrogen look numbers you -- really the much JV Europe, help, you sit been long why be those Does that fuel EURXXX to Bill. government putting grants at really with support that know HYVIA, the will for we we've business. collaborations how If because able the development our to It's leverage is process. But this more over our important, the answer, total cells, you in of if is if different. -- towards dollars example, support take, geared grant $XXX international you Bill? million that but is around billion, at real government Europe more I to a

due helpful. office. some successfully passed But remains Program timing done? with assuming like you're the moving what second -- super guess Loan outcome the be the second question I sounds And it would stage good be bar? and that you Maybe diligence. It promising maybe like is of that's to me the in No, what got DOE potential from sounds you're in Yes.

to hand to off Paul, I'm Bill. that going

is So sheet passed. they term for there's a come couple together, comments, foremost, news Andy and think we've the as with get alluded will and of us in his good things. that the Well, can of first outline that an work we

that of in kind through that's process. more diligence due final government bit market the and there's a we of that they're now studies through they technical studies in And term got their through races that that, doing big they -- to get often submit then and we'll the they're format to a hurdle. just a the final the And So little the around to finish got things that they've once finalize to approved. go get can polishing process agencies sheet --

fast have -- guess it to possibly early be this able motivated mid-November we we approved that would something done at can. something our So all announce get point, hopefully, as we're best and to equally to is they December, are

we've weekly final those efforts out got and push So hurdles. and meetings try to

we'll time that's in of at So we're that see the process. plays where but and line it how kind

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

entire letter to here. we -- not have digest I So able haven't the been

Investor your might So Day. back questions from some come I to

where had about whether billion whether that that area months. that $X most talked saw holds, traction still maybe and over XX I'm the what you with market you So next seeing curious accelerated opportunities electrolyzer the the overall business? in is are you that's

it Sanjay. Eric, I'm turn going to over to

that, last a since actually, up is So anything, if number we the about bit. gone talked

FID, have the project potential tracking by the we And revenue just about talk projects believe of $X are final big funnel, done as the the way, we by business. And actually about could Eric, the these is much one as to months. right? gigawatt decision, us rather opportunity over than for project, next We are of billion X.X actually opportunity identified get things XX investment actually on that we've of

announced speaking, in pretty and -- in the sizable oil we and call, the in as had big all lots market actually a there's move some of of projects. on very, might what them a look, some but funnel mix mix, And We're the not the Now really of in sizable far is when the lot with actually very opportunity there's at that you in which Europe, really opportunity well. with Pacific about as company them guys expected, major well as, actually US, along gas some of sits Europe of that's our opportunity think broadly here now. is saw than about opportunities There earnings and those of sort the you here. last Asia faster quite we right this talked -- materialize,

to before So again, looking the electrolyzer is large funnel sits over, year now. and we are deals certainly the here several close right where more that's

to of kind a as And question you maybe yours very end is also few the keep your know market. in this much was probably hydrogen. being green that you customers back well. Sanjay enough sell got how And and big whether months keep do a you've topic much terms that although, and is open open plans, for actually the of extensive going you up of might in how I

thoughts that So great. on updated would maybe some be

reduces things. plants to start versus to our we is in one fuel our We've once produce -- having a business online I internally bringing margin. talked right mean I mean, think hydrogen I cost to again our and now actually really expanding pay of green we're improving couple our by that of third green about market. the right? what again, key hydrogen a that and Look,

you New plant right? if really cadence the way the Texas, So Tennessee. change, York, then it's right? obviously, would, a in our is Georgia, then of And And then that step Louisiana, existing

actually running, you party the and contract some is we business our fuel third to right see still start once profitable, up Texas buying of now. from under turn So have that that's existing when the

is really for and our there, sure we're application simultaneously our our is customers them XX/X, application make fuel supporting we're make goal them the business that a mission-critical supporting to resiliency it's in expand that to margin. existing primary our sure So

ends tons for Now We opportunity opportunity. how party capacity anything? sure America, opportunity. term that swap XXX than is focus from we able our our we perspective, right think really this of majeure for now, our the to how support of really make ownership have so still funnel the the having we that's stationery a the do liquid business all seen we've we would where XX% I change But enough business, for application product material Eric, we add make reserve cost total Eric. view. in that mean, in is you business, customer, application in enough do handling we terms about near North want in third have really to actually sure bigger here your up really end but Andy, No start about hydrogen market like to the that be then force real to are to good have

it, think Sanjay. you covered No, I

next with ISI. Our Evercore question from comes West James

I you with the are curious attack about Europe. guess hydrogen broader the projects the guys thinking come. So more green there's -- in obviously strategy US, variety green suspect hydrogen? the to in production you've in European know a how strategy what's Europe, but got We market What's the of I to

exist the at molecules, Cone of and to me cost energy a that the back. Northern most Southern the believe of green of Europe. of and look you step going Let take in Cone that's the availability We when

As ton will initial as by the well with of be The ton with which later ACCIONA, we half our some have deal in of of going Germany, are supporting a France, in first commissioned XXXX. as activities we're Port a XXXX. will to which activities, plant support good production letter, on in XX looking the mentioned in the hydrogen XX Antwerp plant

is As be time area good of in spending deal to goals by where about, support of we Finland with we'll a XXXX feel we've up internal European's able talked FID a XX% to XXXX. we're

we've see other land sites could now out plants. smaller at, to activities especially in we have smaller customers, I And that on looked -- Denmark our large become most places, but handling that's focus. big support, of for plants in Germany which material a that's the for activity. we think hydrogen and stationary So own provides France building kind and of and you'll which opportunities are There going

that Finland Now of the key Europe. is looking are Denmark to Central and both hydrogen into item put in them pipelines

Plug. the So is of real that focus

you scenario industrial out green plan, mean a counter market? broadly IRA detail do but playing kind the But US, to the the is EU the be to is you do then similar of supercharging something of or there's Europe ton they And guys in to see could for IRA green out similar something not there. what the of what doing doing I for see it’s that's hydrogen IRA, similar? which a is have there the the -- the in kind

the a with why Europe exceed And very James. closely And overall in that when Antwerp. credit, at is markets allocated now we that that's that's tax we to look we activity so that paper, partner more the look, the navigate. has partners US XXXX we and have since it's it's easier larger of dollars on why have see do it's to it ACCIONA, I'm in Port But in going US. Europe the that it, dollars public based advantage between like US. on could we do, than say And appears dollars of and are The allocated the to been much fact us the the

need a for need the that really partners really expansion. right like European Plug, right really You to the company -- you leverage

next comes UBS. Manav from Our with question Gupta

Sanjay kind hydrogen. market relates this, to alluded gray to it a refining So as of but massive is opportunity replacing

hydrogen. hydrogen. to call refiner electrolyzers on for SAP. support public you and yesterday, Do someday, to to are source our Europe, looking one independent said you make green gray replace green with segment’s there's who growing? basically saw hydrogen end actually You even their in this sure green order of ones refiners the And replace hydrogen their not an gray I'm hydrogen earnings market bigger but announced to see if US a looking

refining, refining end thinking you're as for about that? Europe market So an US or how

going take I'm to let Sanjay that…

it start hydrogen actually to major price value from a a of opportunity as talking green proposition gray So play a lot Andy these the Short a of this a markets, And playing user to today. from in versus It large Manuv, this of industrial sense, refining gray And as some as make opportunity. looking yes. the pricing to a hydrogen know, right, one. perspective, that absolutely number competitive standpoint are couple meaningful right? very and industry We a it a tax sense. is existing customer opportunity, a makes electrolyzer of as opportunity is field major about of see where do answer hydrogen is We economics sense. make sales that comments, lot to production where role really pretty credit was start certainly make the see be decarbonized Economic for sense. level frankly, you makes and

Second, it US we model into going exactly for several market. have lead like a and in end green a to in when Hard the these also and just really electrolyzed build-own-operate of to not of gigawatts on, of they in us. multiple discussions to going is something that but need do have those even gigawatts hydrogen. Europe those say could And becoming of terms from concrete that going up opportunities. opportunity, materialize industry are we And but gray

we And talked unique enterprise one and sales actually would, the serve model need. demand and where equipment, a do can would, company course, thing gigafactory if hydrogen, the we of the a the opportunity we the this If those as as as going to can want we we the right, certainly that fence, that's somewhat the and got being is the see the and they discussions lot Plug, electrolyzer, are just a big supply opportunity. certainly and you looking hydrogen scale buy to it in approach we well customer's And both are this a he they to on what own our in rest that as if can to as trying buy US really of needs that. assured, that they a of build-own-operate has if Europe, behind it But them we the about have. kind capital for very support

portable refueler. your How customers you you in follow-up. product, your one making and I up 'XX have XXXX, to product an potential do first HL hydrogen I the with going that that to with introduced impact quick line it. the market's conversations are top Recently, see wanted follow 'XX. on

I'm going to also. hand that Sanjay to one over

this that year, demand So we're actually sold how the for out that's product so is. with

We have up size, -- interested Class the completely cell mobile some existing opens electric Class smaller refueler. It's launch for even has sold We in well before as very we're vehicle to cryogenic that even looking business on a transit companies for for of margin companies a are traditional actually that gets trucks us it. X have that actually super right? market because us It whole a of out, lot infrastructure good application fuel So X that within business. are and built the our out. of

in big gross see already have revenue. in this of out both We that business, articulated margin You of year target And will corporate in well product a impact this XXXX the has see that that XXXX. a as within coming substantial QX as we growth past. our with that is

is so thinking really transition, a just this is made or support I the tailor product about critical and to add, start with five it about vehicles, a development really unique Sanjay, trying five or because buses to think offering. of you're the using if it industry, six would to going four or you're is to

Our comes Oppenheimer. from next Colin Rusch question with

thinking Can challenges power you're terms stationary into talk on guys little power of you around look about and renewables of challenges? the but hydrogen some are of potentially a incremental seeing of side, some for demand the bit you and how some project the about diverting also interconnection power that avoid some to systems. of the As larger development folks interconnection in at in

who demand fleets So there. vehicles where especially not associated people just and vehicles us the vans, want are with substantial the with -- want delivery Jose, is grid today are for of powering availability who's is for not electric we buses, which seeing EV folks activities

up could we this have ship megawatts orders that year. XX to We

to XX Next XX megawatts. year, our internal forecast show

wind all a future and for which the helps really think to SK will people Hyverse, side quite like with work with getting correlation sit I peakers. back really, is because doing farms rolls solar everywhere will head product. we what to our how we’ll huge the make something is the it's and during permitting is additionality stationery after and to out, center that a products, electric important -- it wind and at going think that real two a doesn't We how on generation. and and the hydrogen say It's climate nuclear think White for I the eventually learning go that XXXX a House climate demand to as also expect developing it's and EVs, us that me, means there's ultimately plant we number is product through really why these challenge know, of it the up Manchin, I that with us, know connection problem. really that to it's really for solar generating it real, interconnect always as side the the the with is we I real using when a about challenge. like When close that this for development real issue there that really we're which moment, this But it's well the curve this learning that headache the is but overcome is a that generation US is well turbines we a off will go problem. change generation blowing, peaker talk as sense is is debate that and as and stationary means and be this and by real wind perfect others goals. curve it like it's for the any product. after it vehicles, meet lot replace what sit team, to you you a learning, we're gas market, to

time on your a And the willingness scale about you shorter look and their growth? to in these talk projects, continue can and bit guys then incremental as chain capacity support of at invest some little supply you to to frames evolution your of

obviously, forward spent afternoon with And I I spent we've whole that's Matthew, one my supplier, on. us. critical -- actually Jonathan moving why who's announced,

others the business. electrolyzer have in We

think to on see see control about take do it think about about call, And we we I -- But investments. think, you been fabricators. we let's is that we've panels, them. worry I into sure an worry future for are what well own people like facilities with to our -- making of worry are, our probably I bring I electrolyzer, like help developing support to been If leveraging worry think West Plug positioned I should through government And do making about trying a need internal I relationships those and about? do this support items rectifiers about publicly companies have York to go you'll Virginia campus like needs, and can't worry places our relations approach all needs. -- suppliers kind probably and New what more those I Rochester clear and who three items, we think at really partners I facilities to about our

question next with comes Our Osborne from Cowen. Jeff TD

August to that in running, still recall that was the give thought be how gaseous was on on like process expecting wondering I and I facility, couple hydrogen. a early seem I making had I or if you're July, update us is of can an up Just Georgia seems their going? and it now you to questions commissioning

capacity you it's performing? can at how us you on there So is comments I just this have actually anything liquefied full point seam, was run give curious, it on or any utilization at factors or

process again, we're I ramping right? think now, cooling know that actually tried up the electrolyzer, very Right we're we're been fairly we've in one, our of be look, to QX. confident plant. there that We're hydrogen of in through liquefiers, essentially producing down up ramping We've without the we electrolyze producing going the liquefaction process this feel So gaseous you hydrogen actually -- gaseous to going in liquid trains.

why you again, we hosting Day all to exactly so that's right, happening August there XXrd, So what's going our on. actually that Analyst we're what's there show and on can

contract, stores. point So but right, since to are a also And if clearly a to I'm wanted are one Jeff, obviously, two, produce what I that liquid? at to on-site particular than plant able this we We're point been going ramping months liquid recognize behind is number to EPC six wanted essentially XX that the be an to We producing months producing three do But one the we coming we've and online originally actually issued you would. on path we this liquid. things stress it make to take And we in we not of the electrolyzer moment said in be. liquefier still here, today, is, having up look here, want that, one. this the the just sure key the is number electrolyzer first room, that's of kind elephant integrated to

term steps sure operational from taking are benefit plant. the that long we standpoint, we're safety a there the from So to of want make

time. story to August. quick of essentially to up We're are in much plant a on long in very at going producing be comment, and point hosting and So the we August we're liquid XXrd this wrapping month you looking the here forward all

trailers… And filling

to forward being there person. in Look

on you one electrolysis quick and day, side? steam have question. tons full at Just those the Is -- release of this in Georgia second clarification you're a a the X.X run then on

Jeff, to that and that plant. this gas And important plant, we're the is the that running we pressure is right, that trailers the correct. from for that third optimize sure high Yes, make very way wanted filled do, actually gas plant, many to have tube at do site. learnings we party times first gas customer for get that, us

we've learnings So the that a all ramping safety are of entire megawatts you XX the perspective, support where from actually now tons XX a site of initiated perspective. can of we up from electrolyzer has point XX felt control liquid because expansion the XX a gone how Jeff, up actually And of far plant a to of that ton electrolyzer liquid ton perspective to production at about now to the ramp you take ton production. XX when so what all perspective that

much really work, The electrolyzers absolutely. really we're thinking we anything they about, know aren't

the just government and hydrogen on that there? from are what the How think the process follow-up are Just of do for the awards hubs. positioned you with you timing

based the of a which with true State much in over the money. really think think some for Jeff, just of fourth be money, There the New states actually it's And really the like, yesterday. because successful. the facilities York, and initial other deal -- of I of needs network, -- that I It's really this put that hub spoke activity New letter of it's large of see connected. York something good is hydrogen of modest, need a regulations seem need the elements case, about IRA going $XX hydrogen quarter a it make the nationwide not that be same make time. $X IRA is closely look grants. the regulations, they nationwide hubs of but holds clear really to a New I that thing the really long think in chip to become the the State be hydrogen a Massachusetts, for York State will treasury if was Connecticut, a it to is But we kind economy. from this the for the makes come more the hubs, that The coupled billion Governor to don't which period But the letter it's the and billion, hub, lot State just of more of you impact at for like the the if limit I was released hydrogen. a this PTC And honestly, to that are the what's you to State Maine, other be IRA. read I will to for not drive support IRA quite by

more and will bit announcements start some quarter, little more the be fourth flowing and will a it out. expect We dollars in of but

with question next Our from comes BMO Ameet Capital. Thakker

program. in and of your $X guys be quick, kind kind you looks maybe -- billion kind how we the of balance -- burned is from and New of all kind kind York operations should And your of just I today, cadence the kind mentioned about about billion year. like you're for kind real the about that DOE CapEx your Texas cash Georgia, the of cover plants, think funded from It flow needs cash. it? $X of of know at once then between of Would thinking you've cash and of Just that

over I'm going to questions to here. Paul the turn Paul?

I things would guess a couple of I with you. share

it's double First volume you projecting, more or when in the and that we're look almost second foremost, at the half.

new investment for heavy capital electrolyzer, solutions, it come pretty heavy pretty working that up preparing scaling of all investment in stationary, inventory. a offerings, So We down. of was up actually in these scaling to mobility scaling expect

-- to in from the have an half. us that actually second cash to to for standpoint So generating impact I expect

is, as down, that's the our going look -- making as when volume well traction, operating margin at, as we're of all Second cost to impact profile. Andy the with shared, thing growing our you

as helps that well. So

So The a play be of second half. done. question that will to DOE you will exactly softening the done, be of it's inflow. the to of should timing is program, your short in the in the how that until on determined it's see terms not answer But

working, as actually other We again, Andy well. mentioned, are solutions with as

to there's months coming of some next start years, those those to And see I us combination enroll you'll as the all in we think from of from to to couple ITC financings. solutions. a of enhanced if of finance, corporate debt, more of things, you solutions look at be project debt the going

of it's so solutions one programs come to going short roll as we term term, And those and from those of in out. the long all midterm

was one wondering And the the level guys housekeeping for reiterated margins. kind that I if question. you the could investor for you just year. on year. I for of set guide us just letter, that didn't quick see the In know the revenue gross of kind I

necessarily It's sales very I substantial to complement -- profile. we and half. are think in equipment year kind function think when second in in a tremendous when see as QX then in range be step of especially see step giving level about that programs give then really to more terms you progress. accretive QX, function big going and half range, to the get specific XX% back at that full even didn't mean of the growth going volume volume XX% sales, look margin the XX%, probably back the in I half, you high the you're on there fourth and in the the of there. QX to you're you when it's sequential deliver And We for updates of quarter. it's XX%, going the rough But ranges in of you

growth sequential So margin see performance expect as the progress you're through going and growth in and strong we to strong year. the we profile

Our with comes Dayal next from question [Operator Wainwright. Amit H.C. Instructions]

selling about into how higher prices offerings you're you and you product Andy, your So which moving for talk then rest translates letter. Can this this bit the investor in a effort first portfolio? of highlighted little our targeting

raise that And doesn't electrolyzer platform and a we there's And there you I'll competition. opportunities based and far a think We opportunities, tested seen that in we been opportunity that real prices. we are the highlight is we've seen that the there that our good we the real we've have capabilities fact that look orders. that's as exist, know to infrastructure business. really exceed on because is supply been because winning demand and one the that we've when platform that the have know people's we've we market the think there

that to one area real there's me clear that's that's So opportunities.

our the that our think because great seen think a we able in uniquely I for unique table it's with I closely opportunities which investments the there been at hydrogen we've past. think of than additional positions our infrastructure segments, I of look, all So position again, because creates all are our facilities, the tied which and and we've really Plug. us with experience with to our in advantage with world deal made we've of that resources deliver, the more around sit that across plants, take value And credibility that can to we

of you maybe this, sort second then significant know are quarter, side And the we in improvements and should on we for the of in Paul? are anticipating breakeven fourth this, the moving I looking cadence margin XQ think at about Paul, in levels or to then half. margin The positive how gross

will be I Yes, accretion kind teens be range. and you're QX, going it in breakeven it know if accretive sales the low pretty more And as And these equally substantial to rates it in absolutely equipment. we're and of should will how think you kick positive but about don't QX important, -- on very it's see of quite I QX meaningful cost continue that the composition talking in volume in. the that to will be downs since is,

your it actually perspective about we as term, there all margin longer of I a Paul, cost So where infrastructure as see sold And you is gross comes should for begin to how of just goods guys? these comes think online? around possibility online, trying mean, infrastructure a -- will products the from declining

overhead do through stacks think and we've very up, between through you electrolyzer get of the Rochester imagine mean, we give an -- designed you and product gone that out thought that that we anywhere The going kind various happen I'll that can fast. and think gigawatts analogy. mean by now X we leverage and facility, products only leveraging I we do to could built learnings could to When that GenDrive that's facility. X of X from I we product. times you of the can that volume we

chain as point, to we we're built going overhead, ramp account cost continue just three be to your mentioned up supply doesn't we things we scaling infrastructure and that business things. mean, to Andy working doing, the reductions. enhancements, in all the the do it's as just on today, today time, I operational we've the spent even of So on range that for hours substantially focus accretive

chain Andy before, leverage and management. supply overhead around got got you've ASP you've we're so and products management there's various that And mentioned price looking cost then at downs, as

coming So going drive what's that all profile those quarters. is the things in combined to margin

Lewis with Greg question comes from BTIG. Our next

next how My -- we XX seeing of kind could there more as first of be what's was are guess cadence smooth the to that smaller kind of here months, I is about the are big around going here? and out the of what of kind we are we kind -- from mean to But the out I or lumpy. continue the base projects orders in building maybe question electrolyzer I be orders should forward a projects thinking mean, the of go market? over cadence

turn I'm to over to Sanjay. that Greg, going

stack key think going should think I So here So Greg, is pricing it's I things, good our which about to it, carry right? One be of us. margin you continued right? is for a how think good actually strategic mix sale, three and

that the of a more containerized versus large to business, percent of electrolyzer more which you keep in in you piece you of projects, that base, right? to see completion pick see again goes revenue Then is to continuing that more in Second as see [indiscernible] XXXX, easy change there under step stack, continue project the with that got as that, some get some sort that's management, at. you we're refine product, business you those, and incremental better lot more will you I X-megawatt Now -- of QX some But be for turnkey project electrolyzer the and high from contribution scale well QX. mean, this QX X up but some really customer, a adding And of is tests you've fabrication versus which QX product a piece accounting. as stable right? business, as megawatt lumpy, things that gives start obviously, seen makes will our megawatt our like of and

standpoint, booking, of Clearly, announced opportunity So we're we're scale our there's should of X project said see right from cadence and the lot a bookings at out, you project see documentation see phases of sales looking through call, bookings talked megawatt that product a containerized one. about, lot you substantial stack if next you're two should very right? major more now. the large legal really earnings booking, you we've going our should that XX months final On last actually we

have smoother. X then should revenue as make adding actually XXXX that more goes should how the stack of about the backlog of kind that, on unfold for how of which the and that that build the you will think the So with of more projects these you things bookings, are you and type of that's And should stable the see and will these base megawatt stack top business. into

Kashy comes next Our Harrison Piper with from Sandler. question

of we're financing I transactions the to and all here. value and any discussing about that wanted ask So then timing

that. Specifically, here? in what your or how to you're we're either XXXX think raise of you DOE, billion, amount the Is monetization $X.X looking capital sense second half source the from for billion, is funds, do $X get infrastructure like $X of absolute bonds, XXXX trying to going corporate much pick that billion? it -- Just a ITC

to take going that Paul let I'm one.

that is I'm across I'm made $X to, and $X.X to and targeting debt you you think billion, XX where -- tell time it what guess like I look would month the various of that's I reference targeting. I billion at frame next capital we when the in kind about sources

pretty cost, mean, best debt confident. it's want frame, lots time terms that in have we're it. available. and I and we the just of access being of had There's I'm to different what capital. of and It's But in trying that that's when what about about go to term about in it we best we're the very we're do be and when kind terms, thinking timing do debt best We players. -- dynamics. that time rolls sheets could opportunistic just But to to that I've of all magnitude. just mean, today. exactly roughly we not So It's in thoughtful that frame, don't I in the get determined. we thinking how very be --

then question on And a quick follow-up just Sanjay for maybe Georgia.

As earmarked bit when earmarked through us the then been output for and actually And Day online, the hit the gap facility the for Can capacity. longer will between handling you taken happened? stationary what more is recently a you what's walk June indicated, or is materials Analyst targeted for it's Georgia exactly in is little that has to power? it that -- back

the and take those our applications, the first, use right? both for of part me question of obviously second Let piece. the earmarked internal for that's So It's first right?

and there continue of implement you learnings. are a we've choice of sure optimum in Now produce some right? here actually plant, to So as terms make we or do to as -- quarter versus to here running way having, I certainly liquid on planning where month that line we this think are this now to we in of actually the the Now run is Analyst that the from right? the the XXrd, learnings met what right to, time the fully again, those we make, you month we here, last are have Day and we're August hosting most do keep

as and production Georgia, up running the we start think building way as our well, that make there plant, our have the has actually to stack impact rectifier a better had from that And the gas what New one So our plant right? could perspective found look be are we that of we from York really the learnings plant plant of Georgia Texas, operation we also are it some learning essentially in from done as going I things here, certainly things us, say. for right? So right? and perspective, about implement time we that's those want to to in learnings that changes, to would getting the some we has right energization make sure, of as do to that out getting we're there building additional better, in So that we're and right? So again, leverage

go the XX because just plant to break down, to also, site another does And keep in and what of in actually August. in and July order you to industry mind, the some back on outside be And things months we've XX is, And be pushing to folks, this the down to actually take go just get and thing right, to of been pushing, really right, month degrees a.m. kind is sense, we've on today, you site. level, know, team month to XXX then and able have built just make average been of versus that able on were guys people you so need happening. at but was a X:XX cool the sure give productivity it's it's

reduced and of well. do to July factor. bit So that's month you of an There's Georgia, certainly productivity a that here that, in really has the June, nothing Would about played August anyone and add another that? in as impact anything can

to shorts event. at Investor wear just would Day that I the

the one if what If or how Andy, I should was you think in could details on wondering XX%. go [Technical then we over Difficulty] prepared of [Technical sneak down in. these remarks, year? Paul, the Difficulty] about more could the I into are exactly the items some talked you and those course

Kashy, I'll to Paul. it hand over

really mean, you in scale give what before, obviously, microcosm it something I fast. would When designing is, curve just to learning a I done example. you're manufacture going quantities, mass never you're that's that's say and guess So I an been trying I'll through incredible you're then new

to broad able we test as of electrolyzers, -- the got case selling have So in great, hydrogen turn and we're we materials well to we've to like be the customers fortunately, the of sometimes in learn terms product how perform plant. between green when -- they certain our and the we as a own product them platform

that we're that kind But pace when things of So of the things. and curve. run the and compound range of scale you accelerate you we're all into to able learning launching things, those those

through humps they're particular, quickly course and right? of correct not we're kind And things, learn of it redirect. kind it of and terms of gotten it learning news we've curves. you able you again, go many terms your So these lessons in curves The -- kind of how like works, through there. sometimes feel go is It's it's learnings we learnings material and in those of those those So that how that the in is some good sometimes manufacturing processes of through. to works,

of example gives that some the that's just in those you microcosm costs. kind things of a included So of

Our next question Burwell comes from Sam Jefferies. with

that the obviously like will, it. additionality of like case the least, convincingly the make conflict, in quick. you XX intracorporate put but the be and the NextEras if that letter my out your And seats, you out wanting view with on at I'll it it is debate seems the world powers or guys the on recently conflict,

it a for what don't that lot in years? win like still a that is next, sense. win that if to put phased as obviously the or a backdrop You requirement make being reasons of additionality, on you gets But additionality is with a like a to do it five forever, guys rest over be like consider plus

included. So with a why Carter back and I take where wrote going Senator stand I'm not was -- Senator the Sam and Carter to step but Senator say, Manchin bill, additionality

it should national it the So work. security. people work, -- bad for would ask some add be. bad for the just seen better I additionalities I'm out it's for But longer done bad may going when by to a it's and it's jobs, of that. stand you and we've question, essentially, have of U.S. lot me the climate pushed But that

to Manchin lot took energy said, And that government their net buildings heart, one on requirements sense. on a talk about this. seeing industry, aside This be And doesn't heart, about and own hydrogen is security decision States I really know is item the national think has to put really to zero just start put at me which the for drive at articles this continue people a independent. United be Andy, not Senator and don't I as they and make you'll

Plug better. longer position. no to out, a So see publicly take But the reason I the compromised it's for

Dendrinos Our next RBC question Chris from Capital comes with Markets.

I guess here. maybe just to start

pushed expectations additional or think had and thinking in level on maybe so. of Can some some kind letter, in on there the six of yourself provide, we commentary be that? other delays timing just more just are construction cushion, you it these that some setting you guys some then Is should you mentioned facilities, of giving the some kind about? months So of I guess, or out maybe investor really all that I

I'm one, going answer Chris. to that let Sajay

Texas, very hydrogen with case a partner up that project make industry. probably the typical right? going glad we sum took that It not you contract to get nine you that negotiation we It really was here, were executed a give exactly opening financing to start sure to So first green us off. question hasn't about on in we been done have done, EPC we of because lump an that going [indiscernible], and look, kick months and that right? to a deals bankable got months, to of I'm six again, and its about talk to Now this to six the like what's right? of is EPC and contract. the get contract. wanted three do is instead kind, So bankable. important, So allows opportunity the makes actually go asked a going to That starts to project in

month the July. now EPC So the in instead of it month of off actually kicking that is of March, in

happened that's what So has really here.

that things the and be doing learning, of have extra like being here. it's working template right XXXX, needs advantage so the in XXXX, a instead is get It of it. So that worth the sets of plant felt we taken and standard all half that this of that now contract we otherwise QX we Georgia, all to what second way, like do the would happened is to well three to that online that. that's basically months thing from in six able of coming not executed, And this did to the how it by project

Until well In national comes to bring been is right liquid substation the fantastic as as energized, grid. plant in that terms collaboration only of QX online. NIPA XXXX. New get cannot the going probably York, now, to as energized of down substation. it all with substation But We've is we having stands it

our lead this items. We the is long liquefier. all electrolyzer, time have our is This procured

being XXXX issues those XXXX, relates make make end on like why also wanted and QX contract are the We've EPC we 'XX. right nothing needs sure second to that the to bottleneck. aren't about that here. of we half the is structure New is articulated not look why being sure to why what where and it that plant our So we right, based be that also is bottleneck, of to working has just thoughtful York second 'XX, Louisiana, And realistically half else There's that, as we like. Texas of that's happened instead permitting just of we're today is hand-in-hand -- is wanted now XXXX, And Olin. it going been really partner, with what to which

that in guess I just cut Kashy’s or my think growth. in then of million letter the during the or maybe quarter mentioned to you I to And because question. had my be? that to I of costs of of might follow-up up out -- phone Is here, where his have forward get I that of you about there's spend? have should here, is we I I and pay think on kind think But quarter the $XX it sort for apologize last incremental benefits guess, going things how infrastructure incremental to like things needed investment investments guess and in going dividends sort the that that are do true

Well, one as we And context. to first did just times some our than think I will of short we the attractive. opportunities for ASP we this to is X our half. size is answer of in the when volume profitable is mean, in because -- many Sales I space. unique dramatically. be about product so product generating absolutely electrolyzers this your quickly mean, of it's into management, that a that volume that's question growing position have this in yes. margin the very areas grow the And is we And the year, put incredibly next

accretive is of So see to that be the us absolutely your going the the you're platforms can value this and propel question to in incredibly company, short significant incredibly answer to that. has benefits helping these

the you're for. helps that provide looking hopefully, color So

comes Andrew Stanley. from Morgan Percoco with question next Our

in a most one against here, in been pushing is curious, world what I'll mine required, hard my -- one just squeeze seems in like of I'm where it just additionality quick But have does Maybe pretty that you asked. And What you're just additionality. what differently. near XXXX margin slightly currently are assuming mean it as it margins for the the your hydrogen business in and term? ask in guidance tax your credit? XXXX and relates to

question. off the But Sanjay Paul second So start part Andrew, and we how a folks, step New the that and the all the of regulations take back answer moving for are that plant written. Texas, rattled has work started regardless of that me remind real York, Louisiana, demand before IRA. hydrogen let have I'll let forward Georgia, that

with I deeply take the was. Air actually people Plug I in such Liquide, I think never the reason, IRA, we're about like can involved And language architect came up. helping a Cummings, tell along opinions the what strong you, it

how about feel shouldn't the about about. a let me that's But be quite let be might thinks maybe why so the debate profiles at strong really talk and it even And it, margins Paul moment. -- he because I

your though… I didn't hear complete context the of question

tax… was margin we don't the the production What Paul, impact, get if

phrased I portion. is we it to -- will. We're going way not qualify mean, don't $X all. get a We're And a $X the if get meaningful. to who is holistic, not Well, kilogram going substantial it's

shape of position we all relationships for have we've this a all Washington terms meaningful way think in in the I help So unique got talked about. the a in things of Andy to that

you year, so right Georgia on, about start expecting that And accruing we're to this talk away. benefit coming

have on it's facilities, to going substantially so more even additional And And into year. we year have impact as move it next and turn impact. will this

of that, it, recognize to the not kilogram of so $X majority short the it, all of about term And talk when in we a majority appreciate. if and you get midterm, the and

that's So for impactful incredibly term. near the

today. go one Paul, they say, without I it's to the down fair So think are of costs to even third what IRA, our

green to impactful guys And produce it lower we of passed, as to is incredibly hydrogen Yes. got because economically such the already accretive substantially our this most at much you and IRA even us a started before know, cost. so endeavor

and and this right going the accretive equation. on overall and incrementally is be to path right we're this footing and to overall, impactful, the So be will additive

comes Sinha Northland with question next Our Abhi Capital. from

Just one. one quick

So whether a lot overall, this getting here in whatnot. and like -- I Europe Australia, keep it's projects news from different of

to have But like I So I term. value feel guidance, here. even but existing guidance mean, not XXXX in incremental of there's additive change of the a no like for longer course, we lot

XXXX to just mean exceed on… be at guidance the least could really So of wondering what the tip materialized scale end hang point guidance? XXXX, could should the or projects look I'm higher or you on you that the at if what I if

and every said in funnel pretty make for No, happens we driving we'll next said guidance And we've which just on what pretty try good behind XX I've over think and revenue provided years, about really But if been I number stand world. stick and the by XXXX, We're I’m this for going bigger. we're did think -- Sanjay and something to I doing already to And the I the electrolyzers, real. certainly the good years. year we've around good day the talked engaged we're the sales are Good what past today. though. for for that

next Curran from Research question Seaport Tom comes with Partners. Our

quick two Just ones.

what time to of it's in terms it achieving see severity? main factors just services your have for closer on your this profitability those then a will division’s of new point? nevertheless that surprised frame? what Paul, that services gross from are coming challenges its given the And margin has that nature, fact obstructed And really be ability of here that confidence didn't improvement you First, undergird or track the Andy, just breakeven the by each negatively some you, to how get either, maybe

And is view our or you let that Tom, really means is challenge out the power need then solutions. challenge we good going customers taking why to really of Most tell the technical technical give involved of I'm be good me with to this and So they our material -- the at successful. of The handling. why -- to the give and challenge with we power this you to into going and you look when more down have -- to put than comes associated is box I'm more believe challenge did. I originally the units we the

all item be we should differential we manage to time. how that second to term understand another have long and which The start advantage is for fuel and demonstrated know And that, cells the like don't stop Plug.

to power, about manage about going fleet. that six add about implemented stops, we've old fleet how been have we we've to five works. And the our right. see new It the sites rapidly. We've the six or takes one and and have we -- has five changes now challenge the all talk that these been taken challenges more We biggest how sites, that's accumulated, or the I'm which people. start it data implement all shows get And that of actually to how to these to knowledge

that is, will into unit more and power we a The into with done, again. issue pack metal run much what second can we this with stack so one we've our never

confident. I profit. service but long a yesterday very, profitable business than term can't see So during be I And I this a the feel the very more reason is no in review, said a not commitment, meeting

sticking material lines? the turning of margins then and handling, I for equipment would road cryogenic Where division. the gross So to power. be major, on storage And electrolyzers, follow-up mean, each stationary margin, are by currently my mobility, then with gross and product transportation major

you for as you you blended goal? get to run or hit to expect that Just what gross average -- division target the to are each basis a margin them on targets what rate enable that

the question, of do. that lot range packed your given we a things in There's

public you plus in of we've and we're have, First and when historically, of accretive that. there. drive XX% what look and to the phase handling. margins there, as And material that see, we're what it's to back in you doing Electrolyzers we breadth we financials, gross at foremost, the all can doing my look continue be is continuing that about early grow leverage hit will

give just the I expect context. quickly the in and some long you our in sales mentioned, to do to the XX%, grow we'll tenured we're goals margin going you -- long that XXs already at we the When equipment X plus. times it's second business up of there to to half. our up But As look moving XX% term all get to XX%

some phases, as We're as selling And our an we first of so they're stuff like especially different example. the newer all systems at stationary speak.

provides at very news When are them going standpoint ramp look fast to those The to from So how a it all supply boards. scale scale. those about good opportunity early process. that in volume it's that you businesses, a we're different from standpoint, across is, chain these

businesses upper cryogenic, mean to that are those -- tank So the XXs. high existing and in trailer the business. I mid-XXs are the

those as and launch and will launching we're and as XX in actually refuelers are market, products trailers, we north incredibly mobile like accretive of -- the that of gate. be new hydrogen So out the

that's get yet, not in I'm mature that just customers calls. are of they're range are and poised, products to to want if don't that listening mix I many would there's So too lot have get a very today there I more that quickly. But sure we because discretive we'll say already of a there these

bit gives So of little context. hopefully, that a you color and

shows… And [indiscernible] your That going was the for overview. very the just you taking helpful was thank approach that to I does a same to boss call to his

able nowhere using plant on forward Georgia be to to should It analysts in let August really North that analogy, in a -- you'll Tom, you'll we're looking to tell like able me boss On and see be seeing the that you note, XXrd. the else be see America.

our letter of us well Latham. it’s And I at be our very as a about will top astonishing coming facility in that Vista south have Power which getting that, Plug So be it's XX facility. held about mentioned, our Again, well, on of you -- minutes worth here Symposium, we shortly, will to.

So thank to for forward look Bye all now. seeing everyone, down you, the staying And on. in Georgia. analysts I

This today's teleconference. concludes

participation. lines time. You for this at you may disconnect Thank your your