Plug Power (PLUG) 10 May 222022 Q1 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
Chris Souther	B. Riley.
James West	Evercore ISI
Colin Rusch	Oppenheimer & Company
Bill Peterson	JPMorgan
Leo Mariani	KeyBanc
Eric Stine	Craig-Hallum
P.J. Juvekar	Citi
Craig Irwin	ROTH Capital Partners
Jeff Osborne	Cowen and Company
Andrew Percoco	Morgan Stanley
Ameet Thakkar	BMO Capital Markets
Alex Kania	Wolfe Research
Biju Perincheril	Susquehanna
Craig Shere	Tuohy Brothers

Call transcript

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Operator

Greetings and welcome to the Plug Power First Quarter 2022 Earnings Call. At this time, all participants are in a listening only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this call is being recorded. I will now turn the conference over to our host Teal Hoyos, Director of Marketing and Communications. you. Thank

begin. may You

Teal Hoyos

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

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

Andy Marsh

for Teal, call. and first thank thank Plug's earnings joining you, Well, you quarter

Like thoughts the chain challenges detailed future some You challenging. gas. start price our the macroeconomic to we give the Plug's review this But let on few a shareholder supply increase have over and letter. in can present, is is natural conditions of In in based I are as how call. a unique fuel outlined the year Bloomberg But everyone, that seen bright. very not let and me by the recognize In hydrogen find by quarter of a will companies economy present for coming this future the trillion highlight, revenue. but in XX% me future. $XX the cells, opportunity. the others, the there’s well today, many of

Let that synonymous. indicator year All sales scale? soon. gigawatt and our world ultimately telling tied goal to is opportunity of our $XX to gross committed business to an this How sometimes of million. electrolyzers. green. intend be most this asked, green The you me are And likely on I'm present is improvement financials as simple and a in margin our can is independent approximately are give funnel book independence We've activities example based energy this increasing tied about we I'll will for story. one that our futures? the QX energy a and this electrolyzers, by funnel

products. Let's start with

our new of at of will traditional All down, today's and product our our we is as products have for electrolyzers. experience cells proxy a curve cost volumes gross over learning XX%. to GenDrive margin will continue Our fuel The minimum margins. present gross come XX% XX%

can take unmatched tactical industry. which This XX% We're net with These the our today. building by employees cost. clear will cost success. the numbers ultimately category strategic assets EBITDA, XX% positive goal is green are and which of that's strategic with revenue, in tons a by our and and the Paul, ready and king, great never positive. the and our for be service will billion hydrogen learnings XX network will year's operating Sanjay $X income. cut own, equation And we today's and I now to demonstrate align ultimately being of XX%. as With customers' I've implemented available be deployment questions. I service more includes one-third feel end, our be now between will about Our tactical our fit been are PPA, your costs plans our in plans, XXXX

Operator

first Thank state from you. question. [Operator B. Instructions] your Our Chris question Souther with comes Riley. Please

Chris Souther

of $XX down you other Nice end Yes. electrolyzer to my Thanks markets give on-road between here. of take and Could us taking non-material that handling for a question the off million here. breaks see really stuff sense any there? some how

Andy Marsh

answer going I'm that Paul to to let going question. let I'm --

Paul Middleton

there probably roughly and bigger is it's the ramp given lot but pipeline capacity. it's business -- of that electrolyzers, in queue detail Yes. the That production growing Chris. in would scaling. But I a and half one-third the second will be the will more the and -- of say be about pipeline

acquisitions. mainly The the other stuff is

Chris Souther

be it. of pricing, positive very kind another And if we're the And in of of Is for kind of kind ramp-up? today rate? there. how long-term that just it you're cost Okay. take what be at versus capacity think of is hydrogen ramps the Do up? of like then you an of seems kind going margin we during we're comes we kind immediate the Got should type to kind assume time on that one-third capacity hit that's one the improvements. of on paying to fuel as looking green feather should to or online the some lower of trajectory continuing when It kind that

Andy Marsh

Chris let I'm Sanjay this one. going take to

Sanjay Shrestha

out. XXXX, we're to how ramps Chris cash positive flow by -- good the will stand obviously, the it at XXXX. looking end by go operations up. right? the we've from cost That's said of question, said So plant that plays having breakeven getting But as down

get target as a That's come to we in our that at that blended operated XXXX. So may one if gross XX%. the you And molecule plays as XX% XXXX thing I our That of think And to is in since standpoint. feel more very you further going corporate it really the the will right? cost actually that that cost margin improve can kind about out really cost of will reduce in online tons April we go cadence confident XXXX. XX add help capacity in to well. think as expanded and Tennessee I how blended our with overall like of month from plant of

So happen. will see that's what you

the we capacity of full see As cost. ramp gradually And fuel you'll the the up. the XX% benefit plants reduction standpoint of are in at come the the online that utilization will plants from the once

Chris Souther

Appreciate. Thanks a lot, Samjay.

Operator

Chris. Thanks, you. Thank

West go Please of Our ISI. next from question ahead. Evercore James comes

James West

Andy. Good afternoon,

Andy Marsh

James. Good afternoon,

James West

Olin It rationale this it lot the some I about? away talk I'm to looks I'm initial could seems curious more signed be Corporation know a and here a of byproduct Could about hydrogen. the bit be their came kind they about relatively take recent but MOU to if with correct produce thinking you you initial JV than changing. suggests. game how hydrogen strategic the the of little like JV small, your

Andy Marsh

it's Yes. in James has probably we Olin which an think network. out a of day. is stream important our step That's over waste building hydrogen tons significant. do per XXX

James West

Yes.

Andy Marsh

I in electricity cost Olin much will become the under And the $X.XX really looking will our position a building hour plus which think is to of We this element much, This we we of for missed? which these a is even next network when think first on the Sanjay plant critical be the complexity at And year beneficial have our what start by the is think the is plants which out costs. to us top can that it relationship real will a I is US for you expand feel with hydrogen get simpler. beginning. rapidly. equivalent just across of kilowatt relationship up I quarter really the Sanjay,

Sanjay Shrestha

big pretty opportunities said, substantial But be you James much volume. pretty like which of obviously with And Andy. will again, building green up summed as you've of one come. it American a this as partnership. And a here. hydrogen said there's with this Andy those think I together critical Olin we're More to partner part pleased pretty pretty this is network North a where No

James West

Right.

Louisiana just why is they I or there's just capacity? Was maybe there you if – Sanjay, Gabriel or project? something then chose guys that about to the Okay. you can St. available plant unique And – chose that, the ask or start

Sanjay Shrestha

time first one is stage that feed as James make but this It and XX-ton that a work right going off be of first long actually to is just you been that's come to plant, and also it we the where availability a having to for hopefully one imagine. green will can of materialized given gas so why discussion Well, many recently the gas on more forward. in it's a here potential there. decided we've feed terms This rationale of the

James West

guys. Thanks, Okay. Got it. Great.

Andy Marsh

James. Thanks,

Operator

Colin from Oppenheimer go comes question next Our with Please Company. & ahead. Rusch

Colin Rusch

you're… little guys. talk how much, you Could so a Thanks about bit

Andy Marsh

Good afternoon, Colin.

Colin Rusch

folks. certainly, pricing afternoon, to relative kind a And obviously that Could about little approaching strategy to you adoption to needle. how talk management your doing your bit of guys impacting of lot are with rates? fully about inflation Andy. you're a the think And But just guys any can't cost Good you of you be immune. is customers trying sort this throw evolution the of

Andy Marsh

question, good Yes. That's Colin. a

to focused in reducing always of service are there that really we're point of service if our to customers. our clearly support our the with down So Soriana, our product associated But in who our we the step in We on much runs cell I Chris increase that we we group, our a own hesitant at in it the about fuel is further. I talk look service to evolving we're taking are drive much a even so costs XX%, see – is – say that pricing to cost cost reflective the was think I take are managing and looking the where we would model too pricing. find more steps for hydrogen, And marketplace.

increases a So to open going say increasing. and more customers not I'm understanding are price like price but –

Colin Rusch

the about yields automation of you can about of that automation you're like up in prepared. and thinking I'm to initial start get just as and far the new seeing awful so then and map talk if I new And what an guess Excellent. there. that with you and it lot looks ramp there's wondering obviously, kind to facility

Andy Marsh

Yes.

automation know for allow be think cost – the that's the the But will reduced don't in that we kept to if I when cost by electrolyzers look stack we at and letter. I XX%. it

significant. position on. really in for size. electrolyzers in – the opening gigawatt in my the market profitable that the why expect X level. So And Plug. on which extremely And to competitive. Colin honestly, such that confidence a expressed I because the increase letter – this number that statement a I really the will makes our gigawatt really of are as during quite It's We're top do world And year it that be during is looking at nice free goes to aren't projects quite produce alone people at in it's X

Colin Rusch

you That’s so Thank much. incredibly helpful.

Andy Marsh

You’re welcome, Colin.

Operator

you. Thank

next JPMorgan. question comes Peterson go with Please ahead. from Our Bill

Bill Peterson

Yes, hi.

Andy Marsh

Hi, Bill

Bill Peterson

Hey, are doing? how you

Andy Marsh

Okay. Good.

Bill Peterson

opportunity I my My as need it three, its well saw question share commissioner in first Europe? in the part does electrolyzer specifically of four years. on I manufacturing drilling to to guess, I Plug even in obtain is declaration as signed Europe to, a Plug massively feels industry policy. a the And XX is, capacity I specifically last within guess terms CEOs do to something Repowering increase the that a of Europe, guess, in Europe? week you fair having And of of is basically that the local be guess, the call probably EU question lot need next in what

Andrew Marsh

than cells So, else. electrolyzers fuel in invested one anyone secrets that the of probably is, year, the and past in Bill I more hidden

us. as many do as and week, discussions. launch our of uniquely I other Antwerp think other Port we We positions were represented that you the by entities. if think the well about And have brand Belgium well

from I have are with [Technical with not Bill. in light experts senators which states, about to would Last in activity. Lhyfe, Difficulty] the fuel three United fossil relationships met We the week be support States. here I either the sourcing U.S.

they how one you those tell of the well hydrogen hydrogen part tax can the time includes press that the getting I extension All lot their substantial can cells as economies for climate economies fuel of of very to future. is a of sure And them and who bill very, has move about, bullish thinking making credit. production are in been senators as of on, ITC, the

fuel I'm cells. strong are are probably D.C., strong, of we folks, and with So hydrogen time for other quite in than and my folks more meeting the of supporters honestly the and bullish were them the who much moderates debate because all probably

Bill Peterson

in Yeah. [indiscernible] that a And peers there's hydrogen as interest your know share Plug just in provided heavy-duty sticking also light Plug I'm cell partnership? is guess the kind for shareholder -- I fuel only OEM to But a But in Beach fuel on decent what -- Plug presence number what a Thanks to curious, is in of to much past second really ago the actually color. also is think it. in guess I you do can I to to hydrogen space. not closer here. has I in Would of in show. of the talking clearly interest home. what strategy providing two here do space uniquely monetize be I you're want the the of of don't very maybe clear guess quarters in else an sort I'm know the be pretty half. more said here letter you to I your your itself? at it somebody to Long potential the the but the looking But

Andy Marsh

at them also to together want Bill used offer I if somebody a future with the market. I important the you also. think really we've And to rapidly sales technology who Hyvia model the And has Difficulty] that's I [Technical think channels. combining product for look

we week I year, can half smart comes we as Plug. And Europe, you'll working second I earnings I spent in of we think think and will a it certain So, you, we this how But in we're how that, entered We deals to entered when I've think this maybe made think letter. I of tell we in progress more people said hearing always patience every not off time Asia, our always with. Australia, in I pay for And in been on have areas. how issue. I the making meet first be the the think entered area. we've on deals quite lot

Bill Peterson

Thanks. to more Look progress. see forward

Andy Marsh

Great. Bill. Thanks

Operator

Thank you. your question. Mariani from Please Leo [Operator comes state Instructions] Our question next KeyBanc. with

Andy Marsh

Hi, you? Leo, hey, how are

Leo Mariani

on are Great. Okay. comment projects expand And if size. you little you you're gigawatt I you I at hear that, I in a currently was the looking right? that made I Did bit. heard electrolyzer right that hoping one could a think side

Andy Marsh

that. You ideal did hear right that Leo. is And PEM for

about really football gigawatt it's of that that you – down. a did with hands back. Do you fields it's football take field. one step at advantages And XX you alkaline. total the PEM. a headwinds me PEM Let realize like if cost yards a project of probably start of That's looking of X.X PEM the distinct When ownership

Leo Mariani

Right.

power guess that I large-scale like negotiations was sounds a - in on. would that so it Okay. potential project it be you're

Andy Marsh

Okay. is. And more It on. one have than we negotiations

Leo Mariani

Okay.

Andy Marsh

XX area of discussions months. not mention just of Leo and in an for having And I discussions let we're some over this it's been this discussions me the none negotiations – in have on is discussions the personally overnight.

Leo Mariani

also on base I just And Okay. margins. wanted touch to

a were additionally, end the there? do positive expect during versus maybe weaker just that first here year? a kind you you'll you Could give sort how noticing main of on fourth see margins quarter. then what your color was margins of in you quarter Do to drivers little progress the margin see turn little certainly gross total So think of just XXXX? by the back And

Andy Marsh

to take want you Paul, that one?

Paul Middleton

Sure.

it business. you was thing because the So the the of is, down first that's seasonality look of sales if at and volume sequentially our

we with version always business. and markets also of It's are just the QX natural So about material a of these a of scaling is volume the first do rapidly in that. we in new the some the way products. the It's phenomenon lowest always handling of phenomenon one-third half.

up right going And now so to in of passage scaling of heavier that time they second – be pipeline. the they're just because quite the half and

So revenues with sequentially equipment my is QX. that against down

positive them and in been we've apples-and-apples So said new a of We're on scaling to which mix that, have Having this time an eight going years scale I've up. takes higher-margin got with a just ramp on basis more there. company. that, you number of business lower products activities

with scale including step that, profile. XX% are improved of activities fact there – really making XX% that. think alluded As paid today. the change And out programs they ramp really right? in got which people We've talked certainly substantially then reliability costs progress doing that and the about like on exciting really call. this with only appreciate were you fuel us That's we're dramatic, to, and not be we function a that margin even extensively, don't to when it's we're I gross the that they'll just So as allow we've Andy shipping that's generate Olin profile. products in the at could a accelerate molecule

an back units and inside have benefits. capabilities get We those to and retrofit the extensive go application

we've change So reliability on and different within and a a curve said, of over we've which that in improved period amount that of will cost XX%. improved time function step batteries than tremendous that cost components focus reducing really software Andy got going more units with improved, putting short by stack be just why resources we're back to ever going is had

in those conjunction year. of this actively are than last by quarter all with from more double growing So activities ongoing,

growth, doing despite to hard the of activities. all enough navigate which So, is we're those

time as course excited all is this to is start you'll of short prospects it year. see this the of what's very to Andy in a happening of transition So I'm really going through how about the and period

just in look going more at year in means last be the all we volume year this context. of you If sales to months the six than last doing that the two-third we're of sales did

where that profile. to be heavily very margin terms guess of the a in best pretty is and So lot means substantial going of product which concentrated volume I that's it's in

very accretive will the through move be accretive year. should it be and as So very we

Leo Mariani

you right. All Thank very much.

Andy Marsh

Thanks, Leo.

Operator

from you. question ahead. Stine Eric next The go with Hallum. Please Thank comes Craig

Eric Stine

the for Hi, questions. everyone. Thanks taking

Andy Marsh

today, doing you Eric? How

Eric Stine

Thanks great spot the doing to tons per just is see. the to XXXX start well. part the green you the was announced and But taking lack Well agreements? That goal. sell hydrogen of Or that that's a to I amount you should the percentage under have that by contract? want way able think to think guess Walmart mean, well, it. day I for you for do really maybe you XXXX right as offtake certain there if term say know be at Doing offtake is better have want with to maximize you to I of questions here. we under longer strategy. What a to amount

Andy Marsh

one. Craig that me – So let take Sanjay let

Sanjay Shrestha

Great, We we way right? it network make to I entire don't the well. out about to we're green it's building question. Eric. hydrogen touched sell on be is Good little generation call capacity Because last a bit that on the resilient as is ubiquitous. economical force Look that think thinking our network this a green hydrogen going majeure going is to sure want

really so as hydrogen it. keeps or industry and flex really potential economical. cell to comes we in and fuel XX% about nobody internally that other a where thinking to ends XX% think but and contracts, want ever ubiquitous right? applications, hydrogen as being the about being That's and of about to getting targeting green the long-term that more more in between XX% have absolutely of worry adopt more is and number as hydrogen players help to up under been capacity should we've the viewed plan from on XX% can we do have how very So, have that capacity we more we they the the that want capacity So the to industry that the been discussing customer

Eric Stine

Okay.

Sanjay Shrestha

and to point And one multipliers well mind know as important Eric an from you a note well new about here comes strategy a one like need one when to others consumes one the hydrogen basis probably we mind, in I green Because this as keep to right? is, so another hydrogen keep application we forklift of a on but whole think all that kilogram offtake think important it's important is this is that demand in day. for very long-term

power of available demand reason strategic hydrogen light truck we're a vehicle thoughtful a a for eight multiplies availability You Class commercial day core new have a concern XX/X day. which have to very day that's and pedestal there your make an into terms about they is kilograms for XX kilograms how entering X contracts to in is these hydrogen never stationary a our And tons that's that almost customers you never at adopt and that if issue. another XX and as sure embrace hydrogen X.X six the why and long-term enough application is to

Eric Stine

Yes. Materials just sense. a Maybe Handling No color quarter here. that makes me. strong one Good perfect there. last for

the three I past targeting XXXX. in said customers think you're pedestal you've additional in

on I on probably secure there? you Just today more if guidance your impact trending maybe counting are on mean XXXX of thoughts you And guess wouldn't can be have even you how I you're much me them for XXXX? it'd three remind they those an

Andy Marsh

Eric. correct, That's

guidance in So not does include revenue our that. $XXX million of

call potential business head good of a got who's customers the Just with He's feeling our their Europe. Crespo. two very in about that

about in developing the I Lidl, we with letter US good the and mentioned really which feel earnings think is customer. relationship our

Quite years very, after us. That's systematic. very the we're well. that's So these honestly trending like business we feel one the for easy it's that

Eric Stine

it. Got

Okay. Thanks.

Operator

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

P.J. Juvekar

Yes. Andy, and Paul. Good Sanjay afternoon,

Andy Marsh

Good afternoon, PJ.

P.J. Juvekar

at par or even Europe. cheaper up Andy Europe with hydrogen gray green cost in natural is hydrogen than of in going gas

are like So, you a your facility? hub plans talk different And that your that there? a are the Germany water plans the Duisburg what facility? You Would ports, great. is about Rochester? said connection what for timing in Europe bit Can to be little

Andy Marsh

electrolyzers in facility can And are where think probably for plans for of XXX and I -- for is say small the support that think this couple Europe a so that with for energy I us for and today -- XX Paul, with the distribution. Europe Hungary. in hub alone light David fill deal today for in issue Yes, tell facility of independence that see alone would in there will and financial plans I tell We a enormous you that Europe the P.J. -- opportunities Europe Europe manufacturing items. strong is you'll electrolyzers I announced megawatts activities I -- there is in probably an we think incredible putting get is opportunities we between our there and with push. that see for in a France it. But

And right. ship because Plug you're can puts position so uniquely which different we others is the positioned than I And actually us think build and in products today much a marketplace. in

P.J. Juvekar

my And go more Sanjay start bit get you green Great. down with is year for color does on plants. you that half question by cost get Sanjay. here to cut could second next hydrogen us as these the in give little mentioned how Can cost a you. you curious. Just half green the Thank molecule hydrogen?

Sanjay Shrestha

Sure. P.J.

tomorrow. by your conference I at to looking way forward -- being think the

that you see in back, that customers, low case, hydrogen let's right? every function told we of the our negatively have on the Now needed at can I looking here. When step are gas all P&L is a that we've told our substantial passed obviously don't in $X right? CapEx cost you pretty us. And end half. that plant, spigot to if to are you on pass particular securing of is numbers on We've closer in happened natural hydrogen how again one has double-digits, -- produce single cases in where we business to one reliable those much you're almost number So, is how has component at gotten extrapolate a of and green the liquid gas that impacted as that it per looked you to cut getting a price of our And negative single-digit So, what take not guys scenario margins in margin kilogram green is. natural That's the electricity. fuel so mean hydrogen. low-cost some So, our biggest think high how right? I to is in right? of price electricity kilogram to to

getting that number right plan is ramped month XXXX, not because going contracts a despite we as even right we had natural pickup to that to as keeps and better will of get big away, XXXX, the and help continue timeframe, margin up QX you going see actually you legacy this consolidated pick other from thing entire XX% happening in Now, gas versus that the And over utilization forward see of we see the And you the XXXX would plant keeps than in gross the some perspective, one still will have continue a in up roll everything up. that go now our cost right contributor in more even Tennessee. this actually world in that's in as margin be QX will with us utilization in April, molecule year. to but

P.J. Juvekar

color. that for you Thank Great.

Sanjay Shrestha

Absolutely.

Andy Marsh

Thanks P.J.

Operator

Thank you.

comes ROTH Craig Our with next Capital go Irwin ahead. from question Please Partners.

Craig Irwin

Good taking-- evening. for Thanks

Andy Marsh

Hi Craig.

Craig Irwin

Andy. Hey Definitely appreciate this. question. for Thanks taking my

been I of this wanted most things the have Andy So, point. thoroughly about to covered at talk

year. really So, in space. you're working cells executing very that's broader fuel part hydrogen green companies one key the picture Plug is right? of the of a And is few with the right hydrogen big that a partners, mean you're could -- faster? What meeting that frequent do a is $XXX go million do? more million I you on major What $XXX milestones possibly basis. you to would

Andy Marsh

committed facility Rochester means, give to That Craig Class I over smart our could business. move the next rather and that can tell an on fully move. scale later thought our have this digging business really six Item X, a to Craig that duplicating big you, in area, eight we're benefit through to is electrolyzer work the Well, vehicles sooner months. than a lot we're doing making a quicker. a I that how That's making to of

big ones. are there two I think

whoever this price of the going electrolyzer would the not ahead. aggressively bigger when time, it get to business, I at to during sheet nervous, right the at have that consolidation the we has to think we a And I it's capacity be Plug table think, win. additional industry times will do off grow getting even and the are lot's balance faster. think these to And the right through people

sometimes So us strength gives this that other is, sheet by is think hidden I one items.

Craig Irwin

over So just you're acceleration trucks, and next markets then sounds you as are for green potential for that really follow-up a have key targets you're years. and prioritizing couple that eight Class electrolyzers of happy hydrogen, with like the it the

would of you sort Olin, As tons number? that, side, that right X,XXX? the for to Do available XXX development number, just make agreement market right developing? What you say of you with this XXX are or you guess the excellent say move day, other we appropriately you is What is this allow at a scaled would facilities. signed faster, to I the into service how need their to

Andy Marsh

That's good question. real a

that quicker. the are be scaling That a infrastructure a to new thought think gigawatts, building -- we capacity are I us lot equipment. we give of York. New bigger MEA to even facility foot than -- XXX,XXX in square we X.X to have It's provides today for the that of

our buddy these us which to the the a having hit premises, hydrogen, effect, one You hydrogen green of is Sanjay availability flywheel success. have greater availability. main will on, as drive to It's the critical apps. I says, And that my of on always the the greater

tell could think So they be throw on a to around The I because number it electrolyzer me Sanjay you that. can't we're it's there's... -- laser-focused big business, that how you

Sanjay Shrestha

opportunities... pending potential of gigawatt XXX Like

Andy Marsh

In term. the near

Sanjay Shrestha

Yes.

Andy Marsh

why, a from hired a folks nobody And build That's Tesla. has these I to it. capability capacity or

guy factories supply work who those folks, this ops Reno at the Plug in team, you bringing have today. folks who I automated and to the ran chain If quick. the Musk factory scale who We're that capability Reno. Greg, and a I for built I have did the talent for look got my the business

Craig Irwin

You definitely better. a for have your the treating reputation staff lot

hope So, I they're your Plug, happy success. walking at for

Andy Marsh

Craig. Touché

Craig Irwin

Thank you, guys.

Andy Marsh

Thanks, Craig.

Sanjay Shrestha

Thanks, Craig.

Operator

Instructions] next comes Cowen state [Operator Jeff Company. Osborne question. Our Please with question from and your

Andy Marsh

Jeff Hi,

Jeff Osborne

and Hi, question. one quick good afternoon. more ones strategic Two clarifications,

that on through better nat-gas moves On side, the flows pricing your just the clarification quickly to wanted appreciate P&L. how

that would was in P&L kilogram flow peak price So today basis? a and today? of through contract basis hypothetically of three, contracts the -- locking months duration six, you're XX the a on in per your When buying market on a are

Andy Marsh

Yeah.

So take Jeff that let Sanjay

Sanjay Shrestha

natural from quarter you almost the as lag what you cost, represents of fuel that. happened today in So about in we our that our And saw Jeff adjusted, being gas to that's gas to about cost price see we suppliers can of which natural impact costs in so what So of the see the gas right? buy terms happened -- XX% price a there's the right? And natural fuel QX. QX, of could

also So to you the of gas natural track happened what QX. in price can

impacting gets in actually happens It's that the it quarter. That's see That basis. of QX. will typically beginning Jeff. reset a You the actually how quarterly on

Jeff Osborne

informal run QX It OpEx guidance you moving just things life? in multiple Could Got to helpful formal it. at appreciate rate? in to JVs. understand relative expansion, it your Sanjay. give business, your pieces the international a you year CapEx for control and I just be would especially the head's where that can helpful. And of a lot of That's very either lot us hiring, or

Paul Middleton

For I think… Plug overall? Yeah,

Jeff Osborne

Exactly.

Paul Middleton

Yeah. good million That is Jeff. $XXX proxy, a probably

I as worked I of we early like $XXX million good is getting was deals up talked a CapEx to it and in I little the non-cash per There's worked than to think through and as said we on expect think accounting. OpEx. about proxy those a We've a ramp to three $XXX acquisition the last January. higher today, million probably did On frankly. so through I amortization is some -- year. intangibles billion bit we this -- we Well, probably things quarter over expected -- It quite as $X the December it of that. lot

the the green we with well through building as facilities that year hydrogen were that pace buildings the the expect of we're I plants the balance as go as new accelerate. So will that that

Jeff Osborne

And it. Got helpful maybe you. Andy then That's for Paul.

frames love made and winning, the anything understand A. if question you some tanks competitors spent of side don't B, you particular about could thinking electrolyzer on then acquisitions on to you're don't the two-part One, you said is the articulate of a and EPC business. time I'd how to You A have lot the your that why you in scale that distribution for you've on mind. And a of when rate you're sense of this attach get looking us trying I'm the at is you're to what What you would side. business pipeline, be chasing stickiness give does equipment could per the for at other then people just providing And and EPC versus are basis a revenue on what folks maybe an and that say storage distribution. megawatt or you that solution?

Andy Marsh

think the can study technology our aspect, the you a That's the have it. can had to there's was part to down a the did But fact -- meet Plug let offering. And let And unless -- of equation get to comes I technology that Orascom, the cut. concluded I winning best part the take came stage had two-year what that best down the of the and PEM you to And always good Sanjay Jeff. deal question. don't it that who me of thought it. electrolyzer that next I'm you going they that with take technology second tell the they PEM they with talk

to is second item and fossil deeply support we're the And mentioned fuel look build-out at plant. hydrogen. atomization, that look together from folks actually can I all frames, the really the the you that transition think who parts in and involved if the of you put

and come how manage how many And big about you how you so plant, and our know industry water, the the products talking manage one of from to And the hydrogen. projects. gigawatt people of do the -- when oil gas you drying start

for you -- think Frames and of of I these and to the you it's item think lots a the capability back India, documentation, all lots lots third support especially fourth with table acquisition really the need the we we item bring support. I kind of opportunities too. lots that And and office I'd in because give have the activity

have we how know industry long But fact things, understand capability issues to those that fact make actually buy and for how seem the this you the things Third one manufacturing in is been and doing make basic. is matter of has build Plug time That a the we the products. know to may work, components, do drilling, to opportunities and you talk this be I and with they in uniquely about qualify said think for that be and to leader. now us. the one Sanjay, liquefiers the was they you conclude want the tell going leader And the industry fourth Plug that me, and other to Orascom opportunities. travelers of stickiness can can kind I

Sanjay Shrestha

Absolutely.

recent with So the was. of here the Jeff, one one of example customer potential of sort

energy-efficient didn't was we one of We tankers We you we we as storage. liquid there. there why the talking actually -- said well. actually you stop build potentially team, hydrogen can were liquefiers. on-site an So right? had about have electrolyzer that team actually our build right the most can We Then tankers,

unique at that look really This really it right? as Andy you when that about talks us of really sale. portfolio perspective, from really, it, gives So opportunity

right? a one-stop that's So becomes can manage dollar supply pricing. a give you per better. a We can about sticky; pretty thinking you turnkey So perspective, And one, We where liquid think our the need better tankers, you we seven it's That's numbers substantial where just XX solution. that's it. shop. benefit about. as When sort obviously to how a are end-to-end even plant, it about per opportunity about want so a day opportunity the modeling can really it's it's well. hydrogen chain customer We you liquid for is think two, higher And math your This the a run Jeff, tons perspective, right? liquid of of hydrogen you us. the give from or for

to perspective. But would to that's at then well. least site large you will storage that's site on would where be space XX-ton a storage XX,XXX the applicable on about actually plant have to from you as on-site be where once a as two not and three, do You actually application go actually gallon storage an

Jeff Osborne

Sanjay. helpful. it, I appreciate Got it. That's

Sanjay Shrestha

course. Of

Operator

Thank you.

Percoco Next your Andrew Stanley. from state Please question. Morgan comes question with

Andrew Percoco

for the question. the time. appreciate I Great. you Thank

Andy Marsh

you are Andrew? How doing,

Andrew Percoco

Good. How you, are Andy?

Andy Marsh

Okay.

Andrew Percoco

for quick one one Just on renewables. selection site

cost you And Department there's risk XXX of on in ability can by hydrogen supply in on PPAs give any solar of ton XXXX America recent source facilities. you're what to that an hoping production Just North green Commerce goal anti-circumvention terms seeing update given day case for your industry? per inflation the this if to additional

Andy Marsh

Go ahead, Sanjay.

Sanjay Shrestha

very you? question. Hey, So good are Andrew, how

thoughtful first think thing, I of look been very about we've power So that diversity source.

hydro have PPAs. We

we the solar our We one, around. of already have that XXXX anything right. number and are way XXXX, some XXXX here when there have two, if competitive really us other number even you wind been in probably signed funnel into have between versus PPAs look PPAs puts a at And position more and which

into actually for we we in the module one we've -- agreement. Now price West the the opportunity entered Coast, -- actually even locked development of in locked when

position us right. And in market. puts versus very unique really that prices you're solar to here seen the So you've a the absolutely in what module

solar when fast a and solar sort tend we've very there do again an in near see large get been to and We've this in wind need in typically we've gets secured. opportunities increase you That into prices is solar PPAs. We've therefore the that. module down. Here and to. to that's where PPA. jumping the about us that But highly prices, at of looking been about, we in high term, very per strategic not seen this escalation all-in this puts to and very right? This on capacity also even months that come gets a it, industry just position, the exceed Andy And to PV the seen thoughtful number, not unique us touched the prices know as really been in forward but to partnership day really XX potentially And again added. that. get very you tons that also already We've happen module XXX

module what jumping happened We're the if you just happened to as that's being would. has PPA well thoughtful near greenfield into site taking. term here prices sign what we're wanting not the to about to for the So approach in it new and very given as a has solar the the PPA

Andrew Percoco

for me. super helpful. That's one one just Great. last And then

to alluded a you there or strategic in? vertically additional a some potential that M&A. a expand currently before to would more acquisition of it Is integrate, of into like more operate you new don't geography Andy -- to think potentially be I anything left

Andy Marsh

integrations. additional great would an trucks are I for say thinking deal about and vertical that's that opportunity probably obviously a Andrew class -- X we

supercharging we're we to. attention the thinking of also we're about side really think partners, kind broader think that to law broader New I York, economy. without I hydrogen example that's infrastructure the and of offerings and type beneficial quite activities nothing And also of more -- and certainly do the are think but giving an would lot either and tagged in pipelines be probably is partnership lot could think storage those in a for bill -- large-scale those in of of I kind really we kind hubs, a the area don't where

Andrew Percoco

Awesome.

it there. you. I’ll Thank Okay.

Andy Marsh

Okay. Andrew. Thanks,

Operator

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

Andy Marsh

Hello, Ameet.

Ameet Thakkar

added my this question, core kind did real you that just Just the other quarter. acquisitions like your to of and in your basis how of products a for Andy. margin well? wondering material taking Hope a you’re business And say fare revenue $XX thank million handling relative business? quick, was Hey, I on gross

Paul Middleton

business look right products electrolyzer It's example, an of lower. at last if we going are six, businesses did year. the seven these scaling that -- I the out you be with new you it's mean, volume when we're times to as our gate, probably

in I margin target. that that to particularly second expect really the to in the the half as size on scaling really starts that start scale the approximating it's quickly So to be And and rapidly. XX%

a there's in So lot that. it's different mean, I -- on basis, mix a of components

digits some cases onward. and to of quickly to So as But them general think second new it year call. to detail low anywhere we're products XX%, we of I as that to about say that phone growing in and in move just of from it's probably XX% double get scale the on this up scaling north hard in all would the rapidly up half we'll but it's and

Ameet Thakkar

kind the prices power prices given to times PPA in kind of be kind the like PPAs come are has And on Sanjay kind kind kilowatt guys just But like I $X.XXX of investigation we of had range. touched being to get higher able think DOC clear the the you of But think prevailing $X.XX of to couple But have a call. about talked power I Great. on to and kind up. all that day of the of kind XX the need kind of in the you in kind understand of the Is for be and kind per power it? kind XXXX of tons right ton exit get rate of of and of looking kind is capacity at power largely place XXX capacity settled you layering way per of day the of down. this to opportunistic to additional after

Andy Marsh

pricing of let mean, actually short we've I tons pretty is, day to more And But that, think some answer about me think where the to per obviously XX when add so It's impact I a even that seeing in yes. terms you the solar meaningful be power it thoughtful Yes. right? time. It's prices do look as secured actually know, is beyond as well we'll we PP again on see obviously module the right PPAs. right?

the XX and numbers in even of hydro of signed some wind the well and entering for PPA that next but years also ton of gets deals we So we're have going given it beyond that live short-term jump actually us the XX the with here to some in that already PPA market, we have. the into solar a to terms not other with dynamics deals into

Ameet Thakkar

you taking thank Great. guys. question for my

Andy Marsh

Thank you.

Operator

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

Andy Marsh

Alex. Hi,

Alex Kania

Hey. Hi, there. How you? are

Andy Marsh

Okay.

Alex Kania

Great.

questions. So two

what kind projects of either you over in might maybe what the PPA that you're looking a midstream -- providers renewable has be anything? that down of, that the in important weeks. question. just little proposal, involving the would your things how from we're sort one next their most of of bit the be that second Coast announced hydrogen that. perspective repower of your and if a guess, First also or That's one assets in that of midstream like detail maybe maybe I'm of of the on talking types time. is is first kind that or just the conceptually broad that, expecting perspective, is I Gulf more one of know EU on for from getting things Maybe the and renewables participating integrated kind project kind and integrated are role and looking are what for From similar I couple things

Andy Marsh

the Yes. want the about provider? PPA with support you relationship and Sanjay, our to talk

Sanjay Shrestha

Yeah.

I So Look, market. But well. is, think mean the we're provide kind Alex, is particular right. and it in competing. on such coopetition that approach when It's the pretty massive at to we again, market. do partner, really, area, a these times might where components be maybe hydrogen be you attractive have are and look with cooperating also some a there PPA this additional like with you where going we're you're would times of And pleased if have is together. this I right, we we especially way really Texas almost are that. this There working partners at massive a as we to of the times can an

or players that with can of capacity hydrogen with folks So please electrolyzer we them in the not lot another a provide we're a position we but able like like tankers provide just the storage. don't if lot about read liquefiers kind to this are. certainly you additional into be on-site There's there's can solutions of to like the liquid Andy of a talked it or

only a the look, in production green nothing it help a and liquid not So, is see call you for others as we're of -- at because more there that's -- But are that expect surprised time. more positive the hydrogen coming on to should this business in industry, are of grow share that apps we're point we'll well. this will probably more that from which to the and this into

we think how particular that about that's So, situation.

Alex Kania

just on the Great. European Thanks. side. Maybe

Andy Marsh

Yeah.

renewables. we've hydrogen. of kind been green with key of to European success. clear kind to I the think cost cost low to of support low-cost working a generating side, about green On deployment what support the key for is renewable this the the is That the Alex quite cost And hydrogen honestly, is governments is European of is renewables to the of on, with the XX% reason to tied me for us And really really power.

of be critical, green hydrogen electricity Alex. can for that we believe is anything generation renewable supports So used that

Alex Kania

Great. so Thanks much.

Andy Marsh

Okay.

Operator

you. Thank

question comes state your Please from Susquehanna. with next question. Perincheril Our Biju

Andy Marsh

you are Biju. Hi, Biju? How

Biju Perincheril

How are afternoon. Andy? good Hi, you,

Andy Marsh

Very good.

Biju Perincheril

Pretty good. the quick for a question. breaking Thanks contribution from Hey, recent out acquisition. revenue the

us for party of ACT, hydrogen equipment as opportunity still question you production from from et XXXX, ramp cetera? there could sources? $X And sort -- capacity, sense could going be So your of much target B can how that billion the also, be the sales of your give is sort much a in third like that you is, from and Joule an is to for come how

Andy Marsh

overlooks So the let our as going absolutely see answer activities part to that of how Sanjay who those I'm his And thoughts revenue. the you question about we is to XXXX give yes.

Sanjay Shrestha

Yes.

to hydrogen can So, liquid certainly provide liquid well number expect from out two here we Cryo nitrogen as we're Number there, could part that we storage with of is because and liquid that as Biju, of the here on-site a and right? third both energy tankers Applied business, a we companies massive our support business. what do sales now business we to transition, short is from also well. there those additional Plug a we're oxygen party for And absolutely lot many answer help it's do. Cryo work one. business opportunity as And Look of

We parent whole. So blood growth as for look, that number. growth $X have billion not have kind that do just similar what about a I the the I as part a like mean could talking of given think rate obviously we of we're be that

So, that's one.

Processing, Plug energy the one efficient the so on of we now consumption Second System, we since have Process side, Jewel liquefier. the liquefier acquired most for believe we

party with Atlas supply internal and to a consumption as own of partnerships Fives, the have both better well sale. us for also that as control We chain likes allows our Copco third

think a to all. at about us should business million to like million be could that you does when Now between those $XXX $XXX that XXXX not -- in sound stretch

Biju Perincheril

to Got XXXX, That's for just then, you of that XXX all that a be volumes, of per talked helpful. quick clarification. is inclusive day The in going or And separate? capacity is about tons it.

Sanjay Shrestha

this But we're getting hydrogen started here. about and happy look just the obviously very But more partnership Hopefully, is like-minded economy we're one a come. obviously in to Yes, thinking very we're way. companies similar with answer. in very location

it well. tons of us certainly and would gives than certainly flexibility lot if get terms diversity higher how we could a of us So get number of this to expand lot but and to XXX as that a you in a that

Biju Perincheril

gives of your a And in as you as... well lot leverage PPA discussions

Sanjay Shrestha

take we're to you going I'm going think that use negotiating and to on I that going with word your you. agree as I and forward I'm PPA.

Biju Perincheril

it. Appreciate you. Thank

Andy Marsh

Biju. Thanks,

Operator

Thank you.

question comes next with Shere from Craig ahead. Brothers. Tuohy go Our Please

Andy Marsh

you today? are How Craig. Hi,

Craig Shere

Good. for taking on answers the Thank fuel the I've question. a of multipart got very you. brief. but might Thanks some be

per maybe that that like if to tons year balanced at per year. to we're others XX meet day keep tons like want you're pure-play internal or offtakers flex XX% roughly at you're of So, end green refiners hydrogen looking need. and means the capacity pressure that XX sounds just the And utilities day at to maybe fuel maybe under and you next find not

the kind part second that's the of of So question.

Walmart naturally green share to what supply plants? just you I'm I your can your about you question you project my are very third-party think your Do swap question your anything final it low-cost in the confused. from prepared the but completed formal about sounds noticed on gas of lieu off to is of part little agreements good point can gas at announcement supply? And And industrial hydrogen on XXXX or XXXX. to part these then in and proportional hydrogen need third own starting debt The agreements, green you industrial roll a

Andy Marsh

Well of Craig. there lot questions a

the Walmart take take a the and day of one out open. we've to last one, but and the of others let figure the few I'll then what going the not we'll You're I'm left Sanjay least.

their started focus focus of This it an me power. distribution is really just is on a is one, So we're to it when eventually became using vehicles. with is expansion forklift we in the it on of trucks, at The Walmart providing And call when which centers. reminds The day, look call focus I auto And what material stationary handling. XXXX get for is $XXXXX. just the that's start. $XXXX XX started The it today.

call think you We're today. that tons, at supports distribution XX XX If about XX, it XX centers. probably

there. So there is an expansion

reduce important and carbon footprint more really gigaton X I is XXXX. think carbon a footprint Walmart's on their by start just what's journey their it's to suppliers' by

talk you Sanjay So to want up? of that about other some brought the items Craig

Sanjay Shrestha

Sure.

going similar a in needing look our of energy versus supplier. buying term be be and right? near is basis to and be some some us swap hydrogen necessarily hydrogen to There capacity pricing And be to more going from right. economy some be some to has has on we That's lot our not we existing right might first to they to always now question sort we've be right. them offtake, the about to our a mind, the So that got on to stop So We continue to you're keep one One of Craig selling defer this key wouldn't what traditional sell a might I will right here is very some that, on selling buying to green industry. be forward. the of from right. price long-term suppliers hydrogen us of gray is hydrogen driving agreement. the say might want some But having our keep the in -- the hydrogen caveat they demand said focusing because continue be like

I to that into our much we the years. we too of you contracts of appreciate to five want on not fact That's that we structured. I level at contracts But how about these over get that piece second point in do will probably the don't on granularity. and with hope granularity. roll share Now when want do typically these that you into for get they're view are And time typically think this can

what question of the I So part did miss?

Craig Shere

The it debt all we last almost start completed was of plants? hit project question point it. what can securing very You low-cost at on

Sanjay Shrestha

similar very of tax on credit, hydrogen and as of generation is right? calculus I network year facilities plan a structure -- fully solar structure cash that back a that both wind be how like are hydrogen know as assets that production basis. say be for you credit out green sort this fast-forward going if it's the some you bond we will as any structure capital for we there of cap and plants it's there feel global renewable think cap to continue production that's expect the structure said tax know you you other mean the part would. green of I for in if to against cap North could depending in use the probably I to today that similar we the Now build leverage that a when plant is a for you well Sure. flow could on generating confident terms a us can ramped certainly to America we do this recycle fully these quite as green having we

Craig Shere

much. you so Thank Right.

Sanjay Shrestha

you. Thank

Operator

There further Marsh back remarks. this for to the Andrew are turn time. floor I'll questions closing no at

Andy Marsh

you joining out look at We're I Well, ecosystem. the today. the doing hydrogen we building for everyone it. -- call plants. We're When are the building thank Sure.

We have the deliver products. to the trailers

critical. is which We have the customers

We have electrolyzers. the

one better of years. hydrogen the No advantage a trend We for take for economy this the fuel have the position coming to is in cells.

forward on this quarter everyone. talking call. deliver to $XXX to So we're and year excited. We're Thanks I our look million the to everyone second going

Operator

disconnect. good today's Have may day. concludes a Thank This conference. you. All parties

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