Plug Power (PLUG) 1 Mar 222021 Q4 Earnings call transcript

Company Profile

Participants

Teal Hoyos	Director of Marketing & Communications
Andy Marsh	Chief Executive Officer
Sanjay Shrestha	Chief Strategy Officer
Paul Middleton	Chief Financial Officer
James West	Evercore ISI
Craig Irwin	ROTH Capital Partners
Colin Rusch	Oppenheimer
Greg Lewis	BTIG
Eric Stine	Craig-Hallum
PJ Juvekar	Citi
Bill Peterson	JPMorgan
Stephen Byrd	Morgan Stanley
Alex Kania	Wolfe Research
Amit Dayal	H.C. Wainwright
Joseph Spak	RBC Capital Markets
Tom Curran	Seaport Research
Ameet Thakkar	BMO Capital Markets

Call transcript

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Operator

Greetings, and welcome to Plug Power's Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listening only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Teal Hoyos, Director of Marketing.

Teal Hoyos

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

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

Andy Marsh

our afternoon, good Teal, joining you, thank and call. thank and you conference Well, year-end for

Plug the revenue of revenue. the questions, a to make doubled Power the supply XX%, pandemic. chain few take despite impact comments future. about we XXXX, In almost the of constraints like Plug grew and I'd over Before XXXX

on customers of the in technologies, our and this the SK, like because cell like as creative focused our first Because fuel so mover and one is faster We've environment achieved Walmart, economy mover our Why creating proud a position first position, hydrogen of top we the our hydrogen our for priority. partnerships as have position important? staff. the products Our is great probably will because belief are trillion come that achieve climate landscape. transition that to goal, are green the global energy hydrogen that that to be hydrogen opportunity world's will hydrogen. financial it change ubiquitous. XX% Many for to critical accelerate the It $XX to economy predicting reaching is large of our is from to needs green And up energy hydrogen, requires a goals. institutions

that leveraging Sometimes, hydrogen. are I been like past have US. solution it out needs the and know the in achieve first Spain. with years step. hydrogen, It's generate is why in half companies how we've why ACCIONA XXX like that mess it's have is the to because we hydrogen are have to the we any green in let And me few goal. focus a green think The green this network hydrogen other reemphasize, steps be and taken around We'll electrolyzers, also network in Joule world build per the acquisition, day plants, to XXXX, going duplicate by liquefying our partners acquired to hydrogen recent transporting tons hydrogen, this over building

partnerships Plug storage. the journey experience we learnings make explore to for We of and pipeline can will are not provide only green hydrogen, our years as the offerings apps. also leveraging continue all own but This these the from also better.

now business the that watching with trucks the Renault, you'll SK, believe for else and We possibility been Ukraine. world. now, with fuel to than more that double our of for to people more be can in have as can be and on-road are world. that for continue and stations and builds Depot, the from governments your to products can't We Sanjay highlighting come. event. stationary cells a the many can can We Plug JV crisis applications, will Fuel tragedies cells more nations Plug transition variety the in autocratic of apps anyone Paul, very take distant built vehicles future. terms, to accelerating We questions. gas in to new is uniquely I used in democracies but have this not in is forklift positioned carbon-free transition because see horrible be that real companies simple the future, people, and help the the Liberal like, creates believe create governments we the in world. to a powering and solution, Home some products hydrogen today do and future to unfolding ready green today. years years energy a Plug This because this creates future this for is And

Operator

you. Thank

of Instructions] West James ISI. proceed [Operator today your now will session. Our comes We question with a conduct first Evercore question. Please question-and-answer from

James West

Andy. doing? are Hey, How you

Andy Marsh

Good Okay. James. afternoon,

James West

to Thanks. you Good afternoon as well.

announced first right production should green yet. that, for So about me. offtake think facilities, new or don't we expecting be already soon? I announcements agreements any one very you some HX I Am

Andy Marsh

I It's one of with me. Sanjay the reasons here have

James. that, Let Sanjay -- me let talk on

Sanjay Shrestha

Yes. are Hey, you? How James.

James West

Hey, good. Thanks.

Sanjay Shrestha

Good.

off, green bit of network North as gives about in hydrogen, talked our shareholder offtake in here were XXXX XXXX. our right? plan built that in about relates you again, it So right? early basically to end the we America actually letter. many said and So first on looking let a break So we as we for to actually talk have And XXXX. little more And the we me we grounds by a actually this three year, that this agreements to first plants said, plans, this

to a right funnel Our gas mobility is before, day, market, And as of blending. application talked about about here, our funnel the XXX offtake. different now, XXX right? secure and about for that tonnes variety is industrial per per from sales It comes Andy it goal tons markets, natural

go more we this in as expecting So signing of of year should of about into announcement deals. it to terms these new QX and hear you absolutely be

James West

stand Gigafactory upstate, ramp out where follow-up like? in does Great, the Okay. we look production me. What's then for And that today? production? great. just Are The rolling a

Andy Marsh

ramp heavy early Production April, James. in really starts

James West

Okay.

Andy Marsh

We not making see some positioned. there. only do -- electrolyzer have there stamping We stacks go well, you see you you We're well if today, -- started plate equipment. the

in May, facility investors. think inviting I all our there be you new off and the Rochester think, to the James, I show analysts we'll to to up

big real So to a have in to everyone May around. we're showcase planning walk day a

James West

Great.

forward Looking too. Andy. Thanks Sanjay. Thanks,

Operator

Irwin Please Partners. of The Capital next with your Craig is proceed question. ROTH question from

Craig Irwin

evening Good taking and questions. thanks for my

Andy Marsh

Craig. afternoon, Good afternoon. Good

Craig Irwin

good in That's Northeast. sure. afternoon the Good for afternoon. definitely Good afternoon. It’s

Andy Marsh

Yes, Yes. is. it Yes.

Craig Irwin

lot so So Plug a many moving at initiatives, fantastic your right? of so now, Andy, parts right product there's lines. You've partners, different got many

work to things prioritize key through, help drivers so can of the lot you improving margins of XXXX. us of a Just course over really the

changes you a Plug made to of shareholder service about and for economics have serviceability, the that in So the bit letter, on and service your side customers. both of little talked some your been improve the reliability

got electrolyzer else with utilization Gigafactory online that's everything the coming the You've obviously, revenue business working. from and

different of as higher make exit we coming the way. things would can a rank positive ones margin initiatives? the will You've these XXXX? And in sort really think the margins lot There's that you on. How which do a of got dollar company move you green contribution hydrogen different to

Andy Marsh

and business we're out. XXXX per priority ramp margins focus XX That having green impact by the for I end the have building is on impact on today. margins hydrogen the have Craig, that at green top That far, the of hydrogen will and a day our to take negative margins. think will XXXX. That dramatic network tons start is will significant

expect So Sanjay, that a to XX% margin you be business.

Sanjay Shrestha

Absolutely

Andy Marsh

latest when about was position, what X,XXX in really service, the we XXXX, service of have think thrilled the be costs. And seen then And XX% we that you in already units by the put field, technology. And reduction end about units, represented a that which those in we I'm out should our Craig.

work as I We point will that I Nevada, cost it very, in savings they've And even with think the exist be hydrogen, it the view, scale the matter. as know, And to in Reno, facility, for doing but we're we Gigafactory and significant climate production dollar matters of chain. green start even changing our significant. products improvement leadership and continued be this lot brought a very this look, in think production expect who you Tesla we in, identified worked supply big already the them, seeing a facilities in Craig, from difficult won't today. of difficult without in very

Craig Irwin

for you Thank that. Excellent.

would XXXX to production demand, that your achieving So then tons margins is understanding right? what of the early into of sales, sell-through? portion in fair again, those per does assume on in green that? things margins, probably total that mix? to come your and simple these is as a going customer XX XXXX, the of And to the what you're drive levers sorry, then context mathematically or actually And production are XX% hydrogen not exiting of -- target keep day simply be some it that follow-up, are what but

Andy Marsh

as I'm to that runs since, going take that let know, Sanjay you every day. business Craig, he

Sanjay Shrestha

Yeah.

you I already into to right, margin by we right? capacity. at business, with continuously once hydrogen, without more I paying that near-term, gross in and our in-house with will of highlight producing plant have, So also a only that of that what and pointed points of if extract as adding look, what going with our what even can our just two, gray we you actually go the as Craig, be So see get going -- I go out, ASP yes, tons day, to today how hydrogen kind We've kind XXXX get what think we're better because paying you've to things Number couple you're are of of a margin mean, three, mean, of know, pricing XX customers and to you number it is extract in you here, similar for number looking with through cost force XX% plant absolutely XXXX, per here you production for green green right? as right, hydrogen without production right, pricing can keep you plant shared of down even you right? one. all kind go we're that cost two, number

tons demand between per internal our is terms what right? number to XX our In of is. day, that XX That's demand,

ubiquitous. the as to to force we these all effects. markets. right? get allows do another which majeure as economy, and this it sell actually opportunity So economical thing have will to get Make customers, is, new something an us see, us. additional to green to bigger is opinion, that also our to get have is to we this challenges numbers, new very And we XX additional that very often through multiple One, tons, industry in hydrogen hydrogen entire important important sure help is you And

So once go will gets the pricing of the this hydrogen should our cost down, step fact without even comfortable North green logistics down. a margins. And in go to built, changing American about see you we network very structure, that feel our change continues cost

Craig Irwin

my Thanks questions. Fantastic. for taking

Andy Marsh

Thanks, Craig.

Operator

The next your Colin Rusch Please with proceed question Oppenheimer. is of question. from

Colin Rusch

guys. for much, the the so tons Like handling demand green a hydrogen is you percentage per applications of Can transportation? Thanks material give over-the-road and of X,XXX it what us how sense much is day the refining pipeline? and in

Andy Marsh

a lot of making hear to work. you, you're Colin, Colin. Sanjay do Good Great.

Colin Rusch

Yeah.

out work to need You man.

Andy Marsh

Yeah.

Let one. take me let Sanjay that --

Sanjay Shrestha

Andy. you, Thank

look, it's means apps of up of is obviously, stationery XX-or-so of So about in recent material are of existing I customers announcement then you which call can also XXX the which some in that think the opportunities, to about to in it, right? beyond of transitioning when well, we I a with important tons and surrounding about agreement your certainly right, That green that with actually makes market talk think if that. start mix, imagine at XX mobility starting Then go some you some buying a of offtake you from and made we you pretty we opportunities forward some we opportunity, is our that per right, new gray mainstream it's blending, look Green sales handling, virtual chunk hydrogen, like think gas like Certarus, you and call right? that as means more natural application a it's customers Colin, traditional right, it almost transportation mix, can our where and And like the when right? Green purposes, them, funnel, you're where a type of for the tonnes -- a blending lot well as right? industry pretty that, have Hydrogen, Hydrogen do of refining not application. they're industrial It's it's to Then pipeline, broad really some just day actually it. So have you where would,

broad. be So the really get and per XXX that's pretty that goal is more day we're year, XXX to tonnes our what end somewhere funnel the former here by that is And around of tonne to working towards. the

Colin Rusch

super about the the the point fact how compensation building is And competitive capacity, perspective a you're curious, and then and talked competitive these I'm how advantage. some bidding where what in a Okay. helpful. actually That's have from perspective? you're it of cost which is a technology things, vicious electrolyzer this curious just is performance aggressive that I'm at But you just is projects guys landscape in

Andy Marsh

And of designing you walked in gate, needs. than I companies that kind cases. system cleaner like about think we businesses, Colin, hydrogen gate out, competition area, when ecosystem can the we've the their customers the built of we think, with think first capable first I our people that acquired, meet a that these many most in through are

I we big a have differential think advantage. stacks factory at advantage. build that a And differential for real look That's that's when gate electrolyzers. then second that, a the is, can I

many projects? screening build they process the that understand a working knowledge can I in with we're application. is and sales criteria us build their that be they can be they of work to people think And combined sales we But plant can we it. first be can is is we're with first -- basics. in fund our the the fact pretentious to Can force And other decisions. who the product, screen the have ways, actually make application my electrolyzer that Do but customers an we an team experienced, my they way not and question about the always, used. screening the around. really

Now, Orascom we're in what you with take doing Egypt. over

to You're [indiscernible] dealing with people plans. build who and know how really

you're well -- dealing dealing You're who with funded. are with folks

dealing application can of folks Gray today who have you substitute for You're with ammonia, Hydrogen. an which Hydrogen green Green

process So the the around is at screening for actually other the way Plug moment.

can you're say, a billion who you So looking $XX at I beginning really execute. screen start through when to really would funnel,

Colin Rusch

That’s super helpful. so Thanks much,

Operator

of The next with question BTIG. is Lewis question. Please proceed from Greg your

Greg Lewis

Thank everybody. you, and good afternoon,

Andy Marsh

Greg. Hi,

Greg Lewis

Hey, morning, US. an a to hydrogen Andy, to supplier only I as in hydrogen in the projects something the to hydrogen to move is we're a solution, or Plug this a obviously, little building I big stage guess mover, integrated your that I network hoping that, believe, a and elsewhere, the like there first actively we we key of out company the about that US. with with was But at color going supply, was in it always green green their are this to game, think of Houston, as project you. existing well project, never pleasure after realizing have was couple looking as be company looking Australia a in a XXX-megawatt going talk is announcement for customers a the in is that forward – is was

understand, see more opportunities for to are as Plug? these, like trying Just if projects we these

Andy Marsh

I know well. that So project Greg, quite

Greg Lewis

Good to hear.

Andy Marsh

with And I'm so Plug it. familiar well – well and it, is with familiar

Greg Lewis

Okay.

Andy Marsh

a project. it. It's we're very – interesting we really And know

Greg Lewis

do you we targeting I to capacity really, supplier own manufacturing company these beyond But new the trying wave guess across for just projects your to to kind think potential business to a its capacity Okay. have capacity? what understand as be is about of what of – lines of your is a so I'm some excess

Andy Marsh

that this in the lot of in. the stage and putting same making the When go look, can up we're by XX% That you a to more of the just a power improve work capacity beyond at is how increase And going absolutely you're same capacity of business, on to enhancements ways product, equipment with MEA, having by time. tag electrolyzer looking to the MEA correct, Greg.

with positioned So our we feel present well factory.

been like item, been other today, look integrated pieces that and so go there factory, designed can again. it at is, of I'd think, and if have is, equipment take had model that to you and The duplicate that specified I that highlight we XXX-plus

so capacity one our feel are looking the next items of have and – I – we year gigafactory? Greg, do this for of and So build plenty we we But at you are, Okay. is XXXX. for where

Greg Lewis

Okay. Super helpful, a great Always Andy. pleasure. night. Have a

Andy Marsh

too. You

Operator

The your is question Craig-Hallum. next Eric of from with Stine Please proceed question.

Eric Stine

everyone. for the Hi, questions. taking Thanks

Andy Marsh

you? Hey, Eric. How are

Eric Stine

to good well, Doing Hey. chat.

the EU, the North five customers I So know, near-term, you got handling, your in in that two in got maybe America. you've just one write-up materials you've pedestal three mentioned on

out think of expectations in as think you number then number about throughout should maybe of about for year? those a this we you customers. there how terms or And XXXX the playing is handling curious, curious materials your ultimate have mind Just announcements in outlook,

Andy Marsh

from let the fact hydrogen largest how is staff in a the second good fuel And to the Plug Eric. cell the That's looking pure-play has when question, the highlight back Europe, and important at you me or becoming step start Power. Europe. largest players, Plug Europe question staff probably and

have facility facility in opening the in the our Netherlands. grand to in to to I'm We about the Germany mid-March. go

who Europe, stages customer Europe. customers we're reach are his or has final at one the I six a business first, US, list that level with. about come I And announce. think of And Jose announcement will to the in customers We we've look well-positioned on in at been for five to when Europe, the doing in all store there's

I Jose. think it think ultimately, about I'd like like to

really our we Jose sector, a XXXX, have achieve target. in in to billion do what that's for outlined $X has business I to think and as that revenue

that for the more the on more systems will think and products important become probably hydrogen simpler the business. channels work simpler, become there'll see be as I as you'll become also, also probably

if for an know don't customers. I ultimate there's So pedestal number

I XXXX. there's goal can share for in rates by a be we the that penetration level think market believe XX%

Eric Stine

fewer and forklifts? Got down. I segue mean, see some a do you. side given know actually was out on company the was years I expand you're about forward good green process how with and -- curious, cost building in that but you what reformer thoughts profile that a playing I into stands curious going it those the smaller you coming was into a Well, market out it that's you'd sites? Just acquisition, how hydrogen small where getting Maybe acquired Potentially, [indiscernible]. the ago, sites

Andy Marsh

question, when it some think Yes. doing And we've Eric. about Good and work I already. -- been

a point. developing smaller, XX-kilogram this through are makes when and pick What it customer depot like or gas systems, gas move looks delivery we're We Sanjay's to sense. hydrogen done actually be system, do another are per we about which Walmart is up much plants day through lower think -- much which where today a either And may we as which cost. it actually more at Walmart designing smaller can

that So container sites. days I but also smaller for essentially to at have will drop back is but later XX-foot up, little, it new which a will you'll in a a how we three units to divert, it not container, off, place, pick come maintain very similar

And but by will it We to to we'll universal able Eric, any have if those year's finished will we give they also another because being linked year's need cost, product service we and sites of -- hydrogen, end, really comes a to if up really deliver me people, interesting. And a this is call back you of projects a be year. clear. calling naturally X,XXX you detail are And universal the of be want together, more centralized our that to the ship by. able to I'll the be of time, end. one center work, expect both cost. of not by engine, but end to issues will that service done on care it modules take drop on happy picked taken require not X,XXX probably engine reduces closely those and site which And be we're are when XXX any both The that to only out they be by

Eric Stine

that Yes. I'll some point. up at take you on

Andy Marsh

do did I And it justice.

Eric Stine

Thanks, right. Andy. All

Andy Marsh

Thanks, Eric.

Operator

next [Operator question Please Citi. PJ Our from Instructions] Juvekar is of question. with proceed your

PJ Juvekar

Yes. Sanjay Good Paul. and Andy and afternoon,

Andy Marsh

PJ. Good afternoon

PJ Juvekar

HYVIA. question first my is on And

XXXX. up you supply think given And sales you about us think just ramp vehicles and I ramping backdrops see up? in chain joint you should year tell can sort the venture many do the how shortages? do difficult How kit this this of make JV in these

Andy Marsh

Yes.

am a at thrilled First, let work me the with JV. step take back say I the and

people who Plug in We France week. have every people are

who's I Plug. coming think from to been France we have folks

this we expect expect shipping different probably that XX I approximately we this it -- about list that year, will We be customers. of a XXX morning, reviewed to vehicles

That real I that can Amazon. deliver is it's goods XXX,XXX And Master wide expect we of leveraged it people By those customers. variety a be deliver know attractive So to like Van a offering. it's about units. product of by to XXXX, facility. real, another

I to of a manufacturing going deal XX, France. opening for a think opening in grand I'm March the facility grand XX HYVIA

time, outside, just So thoughtful is that a I've been it It development a very we're around long at well-run is really other cycle like companies really Lucent. back pleased. product --

a the Mover There next-generation work So taxis. years be People Van be going that platform will on will the going have by the There's three two out. to there's on road. where end. year's come Master will We'll with work on for

think and really I year, So all and pleased with to I this will P.J., the ramp. doing think customers we're I'm XXXX with grow seating XXXX, continue

PJ Juvekar

is question Sanjay. Right. for maybe second Thank And you. my

up that Do ramp tanks need liquefaction storage tanks. investments trucks you that you and production, do hydrogen logistics, what have all kind built as of like kind of in well? As out your you and stuff,

Sanjay Shrestha

gets our right, about would, you've is build as leverage of when Cryo, we talk that XX-ton think really That So network seen, Applied actually than Great right? need right? the about down tankers. how our right? go now the plants one-off plants, X And about you vaporizer. even tankers We question, hydrogen, could it can US, deliver you plant, you like can liquid own a P.J., step with if to a right? stores. number right? Typically, So out build back, you the can we better take built let's own acquisition the can on-site We do as even through

So only and delivery we think really in can puts we the can time reduce building position control totally about a us faster, that's in it our and it line, where the also really control as into acquisition part strategy, year, business. a in right, vertical Joule of our also liquefaction us this integration saw you we of an QX that right? that made the gets of And cost Processing,

you and now step the take our when business. generation capability So a hydrogen back green think in about

could largest it energy We you it, to have all better as the the energy we're have our consumption we able hydrogen, continue our get to user liquefiers efficiency, kilowatt the electricity and the third capabilities. uses market forward. green see to and even we're actually it where We now own out make it looking to own using out of now per path right? versus electrolyzer. some of the the very better of a believe rival to will liquefaction ourselves. of We're finally, it and hour the logistics we a go parties, reduce ourselves, perspective, gate, kilogram some there the and from We're sell important of in of That's cost

that. They're for can liquid the looking provide buy unique do we They're looking that we from customers we hydrogen, can renewable component, for provide in us as a provide that. hydrogen, provide position we They're power can looking If everything we puts well. we else. looking very really tankers, for can for or liquefiers and that. So gases

it. of of we things lot coming very, very good a So the and now Power, a has we about that feel great Plug team of see out part become

PJ Juvekar

Great. Great work. Thank you.

Andy Marsh

PJ. Thanks,

Operator

Peterson from Please JPMorgan. with of your proceed The is next question question. Bill

Bill Peterson

Yeah. Hi, afternoon, and team. Andy good

Andy Marsh

you Hi, are Bill. How doing today?

Bill Peterson

Yeah, doing great been great. a It’s day.

I anything Look, related I feedback terms the your question The And guys kind projects these an that have infrastructure if information of for are bipartisan kind expectations, net the at the first in of set doing hubs. with you March week. projects aiming then XXX in any most It's terms there end the we know announced for what benefits have XXX my to hubs last engagement, by are for ahead has of question any, of the direction? Section are from in for request deal event least guess RFI electrolyzers, of is phase I is to country of to it arrive. first coverage first things secondarily, of or of in guess, Plug steer from of loss? I some But are important your is, is

Andy Marsh

So if there's will them Power opinion. in a of every Bill, in this will one I say US, Plug products, the first, hubs my use

there We have the in been and green with release. make we've through, times that folks specifically been York look, And where working a the RFI country. in X going if very all out press Northeast deeply after involved in York, put was Plug country. the press But by folks on other closely the are think across in New right NYSERDA has thinking you New I the senator the release hubs that the in came highlighted at here out for Senator how Schumer you Power the hydrogen

actively daily. me. -- with they think trying can builds how the one successful opportunity the four opportunity. the view that allows to as, that and hub maybe and I can Conway, something. many we're people hydrogen you help or our that's how is entire can put foundation $X United with to We here don't person for for -- view many the that hydrogen you hubs. build we that, only the build is a in not meet in My Gerry more out. onetime really it government view this my hydrogen of foundations that hub pipeline who's take I'm them is I grow, that is build And in grant So a a are but this, is single do business, through This the sitting week not when billion across economy people I a government's places with work here help an as hubs a hydrogen mean this they folks States industry. the fairs meet twice future.

Bill Peterson

Okay.

just to question, other I think win your of earlier is related Second your captive I somewhat these you -- your address is guess, as announced obviously, as hydrogen When the sell of guess it's you're about related, rate? overseas, guess, earlier captive also similar you this. You I own share And for business, questions. important some it or we in projects curious I have sort production, say, sort US, to but say, how production? well a projects other merchant is on captive have business how and say, you gain Egypt also, you've competitors? but by or US know, I But few guess are, really, kind your for Green electrolyzers know you the I outside about being your curious, don't in let's of opportunities I'd Hydrogen but expect selective that other what and talked Australia would things not view of

Andy Marsh

they believe a selling be economy. hydrogen We're to to to build you want not we but We've win is helps leveraging rate, have Bill, that could technology. are know who to probably to We pie close would the -- make XX%. been line I big. we're pie that the huge our ones -- Sanjay. to selling come the -- probably who the our close -- people competitors say to talk XX%. higher, We're team, would I say if our finish And

we we're deals, and winning So want. kind I we're the winning deals of think

there's back climate legislation where a election, there believe hydrogen, That portion has very that's senator be the very, credit $X a the hydrogen. in which green really President to before need bill climate I much haven't been the bill to Union not States. of supports. will union, be of controversial. will And address we've that this policy in think know it during discussion, could the State previews of the about in state is accelerate Biden there the of We better bill, We tonight. but the going bill the seen government think we tax we United for climate change here the spoken and mention friendly for the a

Bill Peterson

Okay. luck. Thanks for that. Good

Andy Marsh

Bill. Thanks,

Operator

question. Stephen Morgan The Stanley. your of proceed next from question with Please is Byrd

Stephen Byrd

Hey, taking good for questions. afternoon. Thanks my

Andy Marsh

are how today? Stephen, Hey, you

Stephen Byrd

Doing great, you How doing? great. are doing

Andy Marsh

Good.

Stephen Byrd

more. does could Would thank infrastructure bill Good. process allocation Well, see, green I you obviously, guess these as a many at the mind that eight did of you the these, it's understand least and these just I for a guess, mean, little as include we opportunity unclear. I understand bit US I to wanted quite bit of explore talking that more hydrogen the to for as you. or money hubs. I of pass it, the hub money. as determining guess I

guys what of on that you curious, doing sort mentioned you mean, I just you how kind how building earlier, into money so for Just ties you money? your federal I felt wasn't are work on were anyway, sure that's hubs? I'm of completely dependent but that much available

Andy Marsh

clear, First, XXXX to Stephen. dependent those through hubs. is My be business plans I want not upon

Stephen Byrd

Yep.

Andy Marsh

opportunity. hubs the a said, being are That great

the know, RFI process a question, me asking you went as you're out. If

the think DOE response there's I think questions, general, helpful questions are I to which the RFI. the the X, to rather Pretty – it's March formulating. generic, but due for start about XX XX RFI,

the We moment, hearing on I and expect and May, I'm that would the working out grow. going formal by start and it the year, look, And closely, Stephen. at the think, of smaller process that's the I directions you awards the And I with we're mentioned, late that's, may all start seeing with think projects RFP, as end that folks.

process. a about not been honestly, one hasn't lot still, a debates quite discussions the that One and yet. think those is hub lead clarified I known can of there's who

this just attractive. it additive. to helps hydrogen capabilities hydrogen think I Anything economy that perspective, Power, grow the that From see have the and makes RFI people's clarification. because as get Plug DOE more needs. the we It's a meet for trying to all good is I just Plug

Stephen Byrd

talk That's helpful. I a like to does And good green also wanted generation sound the It in Europe. opportunity. just hydrogen about network

there. the context updates EU hydrogen that just in the your the some you as expand letter size a on thinking You've could expansion gave the on the XQ latest But letter well. bit maybe the of and little given in some you past, network mentioned XQ

be would color additional greatly any Just appreciated.

Andy Marsh

to Sanjay. give to that I'm going

Sanjay Shrestha

are Hey, you? Stephen, how

Stephen Byrd

you. Great. Thank

Sanjay Shrestha

Great.

done of think a it's Europe, into anything I'm sudden, from all unfortunate standpoint, mean, BTU is I right? content business the before look, is in perspective, these here, really the think, I plan our location else, prices in sure Europe Europe, right, events has whether short-term been lot a some again, And not parity levels of right, just LNG electricity hydrogen very high, standard getting electricity our been what So a where So seen can the contingent we've prices. price even But it's has you've as or even know, it. focus very, from I a given touching be in in thinking and upon very what the you some renewable commodity prices right? well about does right?

and have, with that get price the one is very the them. that's That's energy. you ACCIONA in partnership can -- working attractive because really solar that Spain, a a very with you So important solar given at why why we're resources

area can five the end right very a it That two. at spending where looking a looking go have that. lead Stephen, a we're the in to ton that to a perspective, right? you time tons Europe, right at into is XXXX, we're to by from operation power we right? possible of JV, bring looking we're is another plant XX then we're by we're have how tons to Europe XXX and that of day That's the where resources, even do about about, think hydrogen of We about right? LCOE wind the that and by center, as absolutely That's -- sites that bring demand lot into evaluating, you perspective, have triangle going ACCIONA Where part and hone a how you So of do part going important the big lowest our right? hydrogen actually XXXX, X,XXX almost green per but two we're And into have wind from locations a you XXXX. a with of

you day the want several XXX said with building several next with sit we per can what on kind the We and that ACCIONA. We years be other have soft might in tons as of we're to would, have we over partners. right medium-term, day. we per here if visibility now, to circle about And about working XXX tons

Stephen Byrd

much. Got it. Thank so you

Andy Mars

to -- He both little New a is -- of I item, was with going one spent Europe, happening in to the strongly largest gas of Sanjay, yesterday that of going us just time. on how with to will and this natural transition. climate the accelerate get the to one real not change future the going dependent will to this accelerate Europe. is focus want what But operator, me -- how the natural York. what's in I'm pipeline the you on gas Russia improving about one in all gases discussion And for explained goals a natural of because the also be in add is I’m was to Ukraine, really and Europe do believe hydrogen solutions. security natural in is sitting I sake

Stephen Byrd

Thank helpful. you very See much. very

Andy Mars

Stephen. Thanks,

Sanjay Shrestha

Thank you.

Operator

next Alex question. of Research. Wolfe is your with from question Kania The Please proceed

Alex Kania

Thanks. Great.

Andy Marsh

Alex. Hi,

Alex Kania

you? are How there. Hi,

Andy Marsh

I’m good.

Alex Kania

Good.

way. Paul to a question throw something his for So have I

the as end of Just about up over investment the year? working cash is of kind course given the the think position, portfolio we the how accounting for earnings

Paul Middleton

investments the talking If we portfolio in we... made the cash you're about

Alex Kania

that's right. Yes,

are, Just given yes. volatile how things

Paul Middleton

markets Yes. a you we're in, you're instruments, Well, anyway. short-term mean, that the getting of in as know, yield not I lot probably in

that. where the can me. very so strange given actually So much rules for -- of I it's that invest. It a some what problem to limits the trying we cash actually amount particulars There's we're just squeeze can cash, out have we of

that's an before. never interesting problem so And I've had

So not with. preservation. focus get lot we're primary going It's our growing the just that consumer of begin is -- but a not the really big of those where that's because and things going it's -- platform the impact market our to and be yield investment. acquisitions there's also between because we're yields those It's of that think unfortunately, I where and a limitations, don't but big like huge hydrogen -- a I'm in on different the is focus not huge to investing not made -- we to things where

that I So answers hope your question.

Alex Kania

trying to to And United the then Yes. some just on more just about probably of one seeing going of than lot a advanced of the -- we're focus Europe. I'm Great. there operators network kind kind back networks more States. seriously there's think is Thank. certainly or from the stages kind other of more

or maybe other are peers this kind on some you're hydrogen different the how in yourself there? integrate So the you network, a as active continent whatever kind of maybe that developing and -- how do of you that have kind of hydrogen see could of electrolysis with pure versus

Sanjay Shrestha

right. question, Sure. Fair

renewable the mix. gases Now you we what liquid to and do liquid think really is plants really the going point. a of have I to be given we're a been here in doing what secured is, think AXIONA obviously, on the looking think market, we we're end Europe I I be at mostly trying securing way up has working or touched two a on either is building up of it actually What in a they good here, location, the we're ends brought gate, the think right to right? happening after we're to a And they right? PPA. of developers you a important with what from But with part even some this far Because have out, the going just we're Europe from so hydrogen is land network, right perspective, the actually Alex, And you location, has again, right, market. delivery working with where some might a are has Europe actually up? a mostly standpoint, right, gas better been as pointed pipeline

be partners if you market. Africa, liquefaction, whether mile Then electricity. the sort of it's can the secure the many like North if location whether I'm a that's see you think it's last-mile to via going recent that to what Denmark, thinking thing, be with with big And So going right? such even the for So piece think would. transition is here Andy there'll players way, be the table, are it's cost almost energy is to work this into to I market critical the to bringing how going about see environment. in Spain, That's probably right we actually that it the there'll that work be market. lowest sure source putting who pipeline the way we're second successful. able really flares many that location strategic given given we more to on, developers have on the I hydrogen renewable of that But posture even were so this moves to capability going very becoming fast But happening where of to first This it, the even we bring would, right this we developer Whether see successful. and is we front, you being right faster, a it. we'll that very the Look, be that's touched just will possible right in with, XXX-plus work right? and delivery, is being about the European -- that and we're terms serve flag post, our you if the can renewable that's are all really right we're this that of in market. the why thoughtful secure basically

Alex Kania

much. very Thanks Great.

Andy Marsh

Alex. Thanks,

Operator

Please proceed your with is Amit of Dayal question The question. next from Wainwright. H.C.

Amit Dayal

Good afternoon you. everyone. Thank

Andy Marsh

hear from you. to good So

Amit Dayal

Hope Just for Andy. for quick on revenues outlook, you? XXXX. Andy, that a doing portion you for Thank do you of the the markets from think question What you’re well? comes international

Andy Marsh

question. good a That's

international market be the think XX%, Paul. I will about

Paul Middleton

Yes.

Andy Marsh

XX%. That's

Amit Dayal

XX% Thank of those markets, grow that all And years? get next XX%, towards these few portion like does have with higher in in we you you. then as into XXXX, or Okay. partnerships even the maybe

Andy Marsh

the answer Amit. is yes, to think I question that

would I have I think -- probably say, XXXX, XX%. do think think part of with I I it would yes, by talking to you're will

Amit Dayal

Okay.

color, for Andy. you that Thank Okay.

Andy Marsh

Yeah.

Amit Dayal

all respect to standard technology that the deploying, you with units, going that the units is are now just enhanced new have customers? been this the And the ones with to that

Andy Marsh

Yes.

Amit Dayal

saving obviously, on you on those, service Okay. the point a are supporting Got higher you're the price is these as mean, costs margins offerings side right. this? well, also for And the getting it. price I All sales

Andy Marsh

would I So hate just Amit. discussing this you this, calls like strategies on that pricing really say

the to value say create with get for just that customers. try we best me the Let our we price

Amit Dayal

you. Understood. questions offline, Andy. take Okay. I'll Thank my other

Andy Marsh

right. All

Operator

is Spak question next with question. proceed Joseph of from The RBC your Markets. Please Capital

Joseph Spak

completed on minute I JV much. wondering that you could so E&S Thanks SK just maybe was this past the spend was if quarter. a

is bit the investment exactly that a some year goalposts on in And partner the maybe is a for are maybe SK JV? this that you of marked also what near-term venture? we contributing? that should like Just each while What for ambitions, the little more capitalization got on look back,

Andy Marsh

That money Plug Plug is Power's No. to as spend Joseph. pleases, Power

JV we the the jet I Let South year, another main a step to for products initial going market And my the will Korean for South is the could per of There continue on JV this Korea first products. and back. be morning. in development a grow which was Vietnam, some mobility this Vietnam, which year, activity deal good XXX is actually and area. a has be to won board but take priority That I is another me for showing Vietnam a with that XXXX. by on grow And stationary opportunities The real focus is JVs focus. in call of -- the on through about top also age the buses, is ProGen the JV, stationary shipping and a offering. will

put and our power of are which XXXX that in help three Paul, JV product One putting the range. next number JV could opportunity I on meet the would the product. most I'm over on years huge the the of trying $XXX sure the type think Korea, of focused moment that probably point that in most focused the are the on areas the a million to is grid that is really From on at make focus, working of because us I in South goals capital people view,

Paul Middleton

Yeah.

think I about that’s right.

Joseph Spak

you maybe one-gigawatt for marked also, electrodes just right or Can if Okay. and -- really remind of you just that's color, next that? stands about maybe just just the that? Andy. end And Thanks. And that think the missed there where by and external, the breakdown I captive is now? that Sorry, -- how target The us Thanks question is housekeeping. backlog are year. that that

Andy Marsh

provide is just Sanjay business business, we call, business numbers. external. all earlier So, our gigawatts within Sanjay’s No, we is mentioned numbers as rough is transfer of you $XX that know, today the that's funnel part I a mean, Joseph, probably XX the in of I opportunity. which for a is, itself. billion XX, have What not

our money, have ambitions understand, the feel So in folks -- have really we're earlier call, as who we can mentioned and they on focused folks that I folks real applications. who who execute, the

and feed huge this more works. interesting there's in is uses Hydrogen gray an the market sorry, substitution, for everyone. just, Green offtake, this parts The substitute. that offtake really really that which the that offtake doing to the The of is the Green that of opportunity for plant we're Egypt, like, today plant One Hydrogen, is and these that in exists keep ammonia opportunities, I revenue, I And easy where that that on it's actually actually really finding that more the business assures hydrogen. model

a of deal good opportunity deal a Joseph. that and of So that that's hope helped good is where I the growth exists. funnel

Joseph Spak

Yeah, color. the thanks for

Andy Marsh

the Sorry about phone.

Operator

Please The next question. Seaport Partners. question Curran is proceed of from Research with Tom your

Tom Curran

afternoon. Good

ambitions As this the gross one zero in bid, another might of Paul. rare I for be margin on

give the visibility, you months a year, progression level confirm better then, that costs goal now on So that presumably of of you of into And I with by are reducing a some per should what look that two XX%? before toward year us or services, like? set quarterly year unit XX%, basis the target can that end end this the we by idea update know of

Paul Middleton

the that that elements year the we One, multiple to Yeah. last gate going see on. put in mix. the the of and performed just Well, in of working you're there's mix that we're out initiatives units better so

that we've stages initiatives customers', That's different the number at of into back different a timelines. fleet. those is retrofitting Second -- happening different actually in we’re

these going So target, as to quoted regard is benefits it the touches. feed life our with of initiatives day, of towards, timing end at you're the going of Basically, that less extend what well. just to how in these works. the you're in in because working to The the that progression extend of really in parts, still more you percentage starting terms half see cause a the see we're second probably of

so would been onward, right. you feel we the and in second happened And to that and as make previous half start what have these cycles that improvements, that

see going why to start the in that's latter part So big this of to you're the year. benefits

it's be got, we course, technology to function with I think the of going new you've as these to units. ship make then lot as a units and continue improvements, change, new to that – continue forward move of sites refresh and in step we customers a

well. And provides so and as helps that benefits

definitely will then more then more year. towards progression see – half you the of step a goals. change in and those function second So next And

Tom Curran

strategy then, Fives? HX us helpful announcement with collaboration And last what your for you equipment, Copco plants Atlas was your summary. Thanks, That Paul. about does the for Andy, do liquefier trying liquefaction and and on month's Tell strategic components? Fives and use a wants parse remain the competitive Atlas open Just rival to expect this where to to to of stay out. bidding in customer or Copco projects about

distribution dual So, two you like vertical collaboration play you'll will integration what a for partnering company exclusive? be it expect you in to the chose bring a have expecting a what for in-house, opted Williams, actually expects and just And extent to comes but be where that those your piece have role, and you'll so, own when the partnering? and for to Where company to example, be storage? a to it, to strategy strategy, which if midstream of or be a it trying to where parse do

Andy Marsh

that am with going Sanjay that let question, team. I worked answer he field Tom, strategic on So, to his because

Sanjay Shrestha

Yeah.

you know, So Tom, again, think, I right. as

as a from And long to on that with standpoint, in what been from that of obviously such visibility a look, have being right? One player fabrication of The right, sort a has time mean, market, the the the right. our for perspective, visibility Fives are, very needs time. Atlas, big house the have lead know, we the I that is reason they do turbo you expander obviously is around

now. really best design, efficiency. right, in energy obviously to table the consortium right local of We terms what hopefully So within the Fives capabilities making this possible with have the is the brings Joule

have Now, in we the a right turbos, partner compressors.

It's have the together, chain fabrication, opportunity and uses that, control when that for in manage one, consortium ourselves, making right? channel. a is basically for can we cost our is We the controlling us. controlling supply you savings So challenges no there that our that a is put also partner internal right. It's sure beyond it

able sure they're pie to us. them similar We looking the molecule we're us, supply be what partners a to to hydrogen grow massive also hydrogen buy that's from want table. equipment our the If consortium, And we're or a right? If from massive are is make have well. that be to and our this third-party We're second So supply liquefier, customers, here. looking basically is thing said, market. electrolyzer this able to a really capital from as will a if obviously, Hydrogen that. as well, is business, they prepared to want massive our green to comes because to to do providing the goal Look, us, parties industry. to will is market, for to to that we Andy electrolyzer as

really up is. that's what consortium back So

Tom Curran

Got it. Thanks taking my questions. for

Sanjay Shrestha

Tom. you, Thank

Operator

is question from question. next Please Markets. Thakkar with of BMO proceed The Ameet Capital your

Andy Marsh

Ameet. Hello,

Ameet Thakkar

Thanks squeezing Andy. me in. for Hi,

Andy Marsh

Sure, Ameet.

Ameet Thakkar

a that third of and there end should we think increase about for and think that me, lumpiness SG&A the about sequential of year do just real big Is kind for pretty upcoming we quarter. thinking how just me, of was – with quick there versus about some quick like year, kind the how XX%, kind at like quarter Real the it of or in the R&D for forward? looked associated that going next or XX%

Andy Marsh

Yeah.

first plant. big stationary building that R&D the of associated Some with out

build probably engineering first index model I out million, for it's build think that just to do out multi there's kind of Paul… that, material it, call $X products. So of the call – I square, would it $X where portion I R&D the – think million, But to

Paul Middleton

there's… and Yeah,

Andy Marsh

away. go Mostly

Paul Middleton

also announced We we you know, as three acquisitions.

And that so other have one-time legal things in diligence A your specialty and would kind and of done been to some help of was prior lot that's firms there. accounting work us like legal with end, costs. all there that

numbers, rough per lumpiness. million bucket XX kind some probably definitely proxy. So know, good you But quarter is that think, I of a

Ameet Thakkar

But kind kind that, going as getting issues as of kind Is you force business disrupted? helpful. prices super that back you of incurred you of are weather kind of going besides hydrogen problem New been and exit on supply have guys the drives a are just obviously, know, kind XXXX. of of And you've the business, the the that of some out mentioned kind kind – highlighted, of then that that to force, kind just of the that's additional as of that you times, XXXX the in through a kind throughout Year's throughout majeure guys there you've And guys And forward, kind Great, force of gap second couple year, that start there like, that we majeures cycle. of the like back to thinking no from related half like a I of have supplied mentioned, well margins lot? XXXX. of impacting of encountered think, what

Andy Marsh

Go ahead, Sanjay.

Sanjay Shrestha

I so mean, on Yeah, factors that, a so play. of right, couple in

right? our to suppliers, strictly So has when that. it hydrogen big to gas costs Natural pretty our related molecule from a impact

a the natural prices. gas up increase as price of So function the in goes

QX, right. in happens. that of some saw what we So That's

feed right, hydrogen building is industry, of we're in Plug why because that's customer, Power what not supposed for longer went the you network into also hydrogen is plant entire Now so this the supporting maintenance, think as here know, think force had the plant majeure, for right? this You And about supply curtailment, go either we the was the is, terms happened often we some down expected to where plants, that than that gas of had critical you've only sometimes, right. right.

right. at So with had down to last being plants deal couple the same time, situations were year, situation have were that of where there a we in

I of network to deal second why So really beneficial that supporting going the hydrogen entire that. are as customers our our into XXXX. costs make logistics to we've not of critical forward, year say And for going because went online step frankly, or economy, and application think this through have very to half it's support as the force force we'll plant be majeure mission there's as we that, that is difficult this and of suppliers, about as built, maintained, to some our customers. going some which to be go sure Well, managed we be and it's But well even our able is think up up as with majeure. really this come

Ameet Thakkar

Great, thanks for guys. that,

Sanjay Shrestha

you. Thank

Andy Marsh

world that throughout that there's no like I system the products. of looking of my a our and it happen all is kind advantage day. this ended. experience of is hydrogen than real to year. I'd to the creating today think the or one And in is week to because ago. the tell forward we remarks take would our of years echo where with Plug you better really our And people because position the energy two to a change I more No faster to of new going And for personal last built thought, talking I'm you, Plug to transition end is call just even

everyone. So thank you,

Operator

concludes conference. This today's

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

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