Plug Power (PLUG) 12 Nov 242024 Q3 Earnings call transcript

Company Profile

Participants

Meryl Fritz	executive
Andrew Marsh	executive
Paul Middleton	executive
Colin Rusch	analyst
Saumya Jain	analyst
George Gianarikas	analyst
Eric Stine	analyst
William Peterson	analyst
Craig Irwin	analyst
Sanjay K. Shrestha	executive
Dushyant Ailani	analyst
Christopher Senyek	analyst
Amit Dayal	analyst
Henry Roberts	analyst
Tim Moore	analyst
Andrew Percoco	analyst
Kashy Harrison	analyst
Ameet Thakkar	analyst

Call transcript

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Operator

Greetings, and welcome to the Plug Power Third Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Meryl Fritz, Marketing Communications Manager. Please go ahead, Meryl.

Meryl Fritz

Thank you. Welcome to the Plug Power Q3 earnings call. This call will include forward-looking statements. historical among anticipated of developments, results matters are include, plans beliefs, and statements that strategies, and from not forward-looking others, expectations, statements future other These facts. operations and to it to our Securities We intend provisions forward-looking XXXX. We Exchange investors. and Securities Act contained statements Section covered future the that the Section of of safe of for XXA be is in Act these communicate harbor by XXE expectations important statements to forward-looking XXXX of believe the

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

Andrew Marsh

today. we're a the us has the advancements, Plug management, for third and our of and a on in reinforce Through morning, to been results building and for improvement. focused positions foundation to approach technological everyone, XXXX you I'm growth financial quarter steps and Power's enter operational share for that taking a pleased economy. XXXX update Good strategic as joining thank hydrogen leadership consolidation time to we're an efficiency, a resilience strong XXXX. pivotal year, and we disciplined Plug provide

line over dynamic support clean credit economy. Plug Trump Our continue focus milestone on legislation critical investment the with mission in landscape administration, We advancing that remains the industry. under hydrogen while in played like government the to governmental the affairs years for help executing role a a key tax a navigated has to our policy policy. shape staying evolving first Power energy

power. hydrogen new expected and nuclear deeply in clear. climate. This the hydrogen policy of that completely to reported that the been do the positive has be that support and indicator have will there development we political the A to landscape is not Politico in administration administration Biden engaged expect We with continue a is change is

tax important announced is end. year's to with expect terms prior we hydrogen an production consideration near-term accelerate soon, on be Plug, will the For to that projects favorable credit guidance more

Additionally, we DOE track process. on the remain loan with

with as supportive solutions Louisiana X in European Georgia green advancing stationary Plug of to are venture Tennessee, secure a critical well. PEM initiatives business, us to electrolyzer network. largest systems the Plants to fully and continues a phase as leadership and also foundation expected U.S. leading be our global to Louisiana, expands. Globally, I climate recently U.S. partners along first apart. pillar the in from is quarter committed our with as policies increasingly in our with our megawatts quarter Power's single alone, for power application hydrogen electrolyzers that recognized, who to Energy role of vision. Returning European Europe, now remains leader hydrogen for worldwide. these Bloomberg demand production recognized together, set is green economic energy support want next These technologies sustainable infrastructure the we with in the discussions robust. hydrogen as not economy. In of align provider Plug's hydrogen yet reinforce operations, Plug facility hydrogen a highlight megawatts building deployer in joint of goals recently our With our Taken electrolyzers a in to year, the is underscore currently for of is returned and the Plug are of in as transition. hydrogen PEM over deployed China. I commissioning Vault. hydrogen installed, outside operational XX supply further chain this meetings strengthening

the Yorkville global is we engineering enabling but advanced today down, transition. EDGAR is and $X.XX restricted essential Power's a the refinery, key international deploying a starting of Under PEM announced long be million the in for BP, solution for material with energy price shorting With with partners of whom a at customers We with forward to a convertible including from our Galp, package X-gigawatts offered position ability new Plug April demand to coupled $XXX in been megawatt markets. These are committed also we'll we're seeing business. My this Plug to on in and has electrolyzer collaborations, largest conversion hydrogen the and their reflects Plug's electrolyzer Yorkville handling the systems our strong opportunity growth order new recent basic with terms to and moving Europe agreement, deal meet world's in underscoring role Castellon XX at stock. deliver Iberdrola Capital. a design XXXX. market and scale in trip with

Company's Our partnering investors intrinsic focus remains on the minimizing value. shareholder dilution with who recognize by

for and by Additionally, solutions, we the to equity-based infrastructure. million, ITC our demand reported explore to within $XXX.X and reduce financing strong future electrolyzer we continue funding of of benefits further sale debt particularly needs. QX, revenue driven hydrogen

service, management and with equipment, inventory We've reduced to our quarter-over-quarter disciplined businesses. to company burn improvements a also by environment. cash to last rose our and commitment across grow demonstrating profitably XX% financially gains optimization. cash by building These quarter, approach dynamic highlight in a to margins our prepared resilient compared fuel gross Our XX%

As government year our we're you, has capitalize we built us this turn a for few and confident call foundation strengthened opportunities the working we I'd to like to and that success. year close comments. XXXX, the poised strategic in for supported a is positioned Paul expansion global sheet, Power to the balance ahead. Thank ensure to policy, new Plug With over

Paul Middleton

the a supply. journey a ongoing embarked point years and management. on while critical reflects our and company. We integrate Andy. ago these a and to Thanks, XXXX of the inflection the continued significantly cash nurture in doubling on few broaden on hydrogen We've operations offerings for economy to down optimizing our vertically hydrogen Plug transformation the solutions

capacity growth saw business 'XX which QX Progress the of ramping additional the months. our of with in in hydrogen results. a current provide and QX the In sales green hydrogen has XXXX, great and XX Louisiana a to into represents During Tennessee needs 'XX in and commercial stage particular for meaningful coming point We've day major and for made in tons new Georgia, and facility first plant annual sales facility we is the our our continued us to QX close combined the continued global recognizing have day we which that tons us provides an half platforms, deployment optimize will the range in electrolyzer electrolyzer market inflection per products. broad of our the of growth on onward. of per of XX many third set over the launch

continue on company. optimizing We the to of the focus workforce

not QX manufacturing many added and growth rooftop restructuring rapid completed through pool where in warehouses additional New of process at and sites Albany, workforce attrition we've York. over to optimizing the we've have that the leverage. global January X of we've years, a We're resources reduced our year worked we this by Given over to consolidations and XX% maximize main Rochester, and Since the lot and facilities. the consolidating in recent York ongoing X, had resource New backfilled. We've

in have and particularly be QX benefits to cash We ramp, and meaningful inventory pricing is impacts continue will which many which across our as lower can for fuel pricing in new optimizing results, expect years is offerings, fuel, to of and a margin adjusted term These and platforms source in meaningful service and service. positively near for year-over-year enhancement. launch equipment, as seen as the well a reductions lot made we measures. We've get pricing we and focus combined product used the provide these periods inventory. X benefit this enable successful the investment to targeting of progresses sales increased results under CapEx over focus from CapEx will We full these particularly liquidity. Net down of reduction last these the year, year on as resources continue on with operations asset leverage,

cash the rate leverage growth. expect further to as the over working improve further near We burn we and and even margin capital and additional CapEx continue curtail term sales drive to

laser cash at flow. sales improving remain QX we to margins, Turning XXXX, growing on focused and

production, Louisiana our driving opportunity sales and consolidations, and leverage driving and Tennessee investment driving the additional with fuel enhanced not readily provides require benefits of equipment an network Georgia strategy leveraging to further more Our Xx service includes increases costs facilities, profiles. efficiency continue expand. these our driving Xx plant, our vendors, yielding beginning annual leverage to targeting expanded on cost down source more volumes. Continue capacity, given new manufacturing more full And commercial completing material price to and hydrogen does which the workforce lastly further as us and our rooftop optimization, and

number unlevered In liquidity of for different a opportunities provides sources. sheet our of terms balance liquidity, from

We've parties like of First, term. Sales cash improved the a near leverage this Antin. flows, we've additional and million price million million to debt on we continue inventory. at release continues $XX improve quarter and could in we with the interested earlier $XXX equipment varied in been rate. quarterly established We're at the mix will to downs targeting pursuing cost our reduction expand opportunity to facilities operating that platform length cash and growth, balance findings continued to restricted $XXX discussed increases,

We're the successfully the Lastly the Andy. we're We've we're closely the turn near meet the term, facility. in on close made working close and regularly. to we and now billion facility. I'll with them process to to to it clear back targeting loan $X.X and with access this extremely progress finalize tremendous DOE

Andrew Marsh

you. thank Well,

ready think questions. I we're for

Operator

Rusch Oppenheimer. first from [Operator Instructions] is question today from coming Our Colin

Colin Rusch

about at guys, part start of into year monetizing bit can and a for here of the the first you quickly you talk next inventory balance sheet, can the year? the looking Just little balance how the

Andrew Marsh

over to Sure, to I'm Paul. Good going Colin. turn morning. that

Paul Middleton

is one Obviously, sales. Yes. core of facet that

QX. with benefit guidance, of you see be that on anticipate based much to And start our some so you realized bigger can QX. a And

that in we're working leverage. continue in benefit more even that expecting reduction QX, definitely teams we're to So with the and

have additional the in leverage next year. of We reductions for anticipated first half

in see should meaningful onward. leverage in on you continued that QX reduction So and that

Colin Rusch

on then are of restricted that or thinking a cash Can restricted loosen cash a are if you that there's variety a not near sense term about? any through. of covenants the I'm sure in real whether working obviously, balances, here is of you strategy give us that the could guys up And just that guys you

Paul Middleton

Yes, we there facilities angles definitely And those routine multiple in our servicing normal on has the reduction which are releases. of work that.

angles probably that transactions pockets cases, like where effectively back a per those will that reserves, little that have we XX quarter. But with it's also because We a lever did bit receivable. number years actually working some that, faster Generate than can deferred release we what in of closing we're few we're ago of a different also a

see that So factor definitely there's that Generate like meaningful in similar it's think we've opportunities deferred value asset And to a definitely what to we receivable it. done. effectively parties

Operator

Jain Next from coming question from is Saumya UBS.

Saumya Jain

what see as Do seeing year hikes in path gross margin? positive your rest guess And are I What could to drive of the you for price the 'XX? that? you additional

Andrew Marsh

let say address So price then hikes that talk we margins. Paul would I'm significant going have of with to had positive customers. many about and I price I'll our increases to driving

are future level. business legacy deals the a of profitable and are in deals, electrolyzer being at especially completed almost priced all the Some

in wildcard a think tariffs. is of will future for in there U.S. is additional I inflationary be price increase the pressure if the because

manufacturing profitably, inflationary think changes. I because increase on U.S. something a we let primarily moment, conscious be the aware positions the well to the work to at are we that. of we're doing if company. Paul cost make work need is we'll It I'll add everything and we sure price environment on the pricing to business. But reductions, So we

Paul Middleton

that the the with through both you it's think electrolyzers, cost, that to point better we to you're QX expect material and see those see definitely layering see on optimize the get the it's that at and see I events to margin. continued accretion onward new tomorrow real workforce. done those been businesses, QX a you're we'll it's you Yes, we and other fundamentals, see, doing -- we've expect launched handling, 'XX about things you that lot that. in in continue driving continues going happens. And And We as better the in touched to we'll more progression start in and the that really work themes Andy programs to that important expect and volume, backlog all going to see onwards. handling, look that material sales the talking in pricing that it's continue you'll a symposium, all be to and continuing platforms if this and in in mix these new you grow as down that but It's we're from and now have material certainly in

Andrew Marsh

And Paul, we in saw QX. XX% improvement

Paul Middleton

in Exactly. -- And at into themes leverage you'll towards a QX. And volume, our combination are factors see working that's our continue Yes. a lot those PTC, price increases, of that benefits. of

Operator

Next is Genuity. coming question from George from Gianarikas today Canaccord

George Gianarikas

push other the maybe United think words, first world a more impacts bit question, on an parts about the in changing see other into a Asia? other of of sort of they maybe existential landscape to Maybe about States the as parts grow views the you forward I'd as the ask love you regulatory In kind at way that and opportunities level? how company and little company the of do in Europe to your

Andrew Marsh

layers here. So X I'm going to on touch

continue And power, talk was the hydrogen, Politico you there be people about in support the new to that nuclear policy. to expect SAF, have Let probably administration. article me -- U.S. saw about

I'll the at first, there look of issues are kind the you landscape If PTC. regulation what call with

office. we disadvantage and expect to you been and oil and there But sometimes been sometimes decision President the before PTC. Look, up Plug the a gas has takes look be for opportunities hydrogen, Trump a the it to benefit We that what says, Plug. lighten greater with likes about Loper think expect at really also, when you that law could and

change to the go into but I think plan. we the you loan, I'm that the out at in going when DOE administration. know a look with close have not here, DOE we the clear and to before path details specifics

the of I at it are last Australia. of of international that manufacturing do kind important. And you're stacks made, our be -- we a you I primarily those hydrogen what but administration the with it's come footprint, of help competing localization think we the our and have grants. And around at most or of people of I X closed administration, or no think contracts world, well look our China look, are grants, when a built you should matter pulling October were, American And electrolyzer easily against U.S. that products a for worldwide the we infrastructure. views look, Europe war That one's as who's a to States, world. were our work, had being regardless our think, parts whether can and our the is from there the look also in American whether up. When good opportunities Biden relationships products have that and span not, deal if products, grants where a activities hiring administration we year United create electrolyzer business building with most manufacturer even those our electrolyzer in trade we American jobs. we prime you see and I contracts by most capabilities -- stationary an is as the happening build integrators with whether Australia, really will of of deployments, -- for the Trump

of we're on, working at look you and that basic design Europe engineering in the drawings and works Australia. most If X-gigawatts of

So worked with we and Congresses, we administration, to challenges. that's administration, with think Democratic going But do naive Republican worked to Trump's with President we'll worked aren't that worked a with to be continue not we I'm Bush's Congresses, President that. there we --

George Gianarikas

follow-up, convert a that the details just more could on you during as that Maybe some the you share call, filed? you referenced possibly

Andrew Marsh

give breakdown? you Paul, Yes. Sure. want the to

Paul Middleton

X% Sure. more of a is now. convertible really outlook not unsecured things where posted is $XXX working from our price fund And at fixed where has interest premium to to to for think we're conversion premium, information. and on positive XX% I important websites can duration. certainly a has that it the are on this off it's system us And the net is Plug go you XX have on share because a with a hopefully very rate. with tell it'll months close getting It's price be short is they Plug, The the stock the that of EDGAR And over it that long public they what's up view quickly, $X.XX, which equally in going at million agreed the gets expect form.

details are key to but some deal. those follow, of of more So the the details

Operator

question Stine Next Eric Craig-Hallum. from from coming is today

Eric Stine

at it's So it look when fourth typically me be. that a guide, little than maybe I to quarter would it seems wider the

you recognized. can the to to in which had of impact you sales know QX, I you much how be, those low not were left curious a end? kind would of We're what's there of just high my follow-up talk electrolyzer QX. will and is I portion the And good then QX, curious, What Just for just that in in end? gets guess

Andrew Marsh

the been final for commissioning may of -- So There in may products. which we're that's many moving, XX%. about activity from QX. now we're some represent recognized electrolyzer ways, doing be the Eric, Most

Paul Middleton

Yes.

Andrew Marsh

been just most that's were shipped. one the been in the hasn't which -- And products of fourth maybe that recognized. that Eric, quarter manufactured we're quarter -- business and integration being commissioning will electrolyzer deal and because now third be higher doing we maybe expect in that of the the products most And

we about when -- that's a back so what expect So step fourth you take quarter. the in

X the for of think One One don't Zero in XX world. either is X probability I that And happening a items mind. Zero we really a is know event to One the liquefier million. world world, is or million come

business. that kind range So of that certain in drives a

really we how did first The second you to as pretty go quarter But that the revenue -- thought. Even was item learn recognizing preparing the not we large. electrolyzer for we about as as large with if that strong. I as funnel the at quarter, look is second in it, we though XXXX activity associated the is

on We And of we again, business business, coming I XXXX, expect we'll to improving. we grow. the be that's what Eric. apps XX% in electrolyzer have the see, at fourth in to that look handling I a expect, When growth come path and kind material that to of what is XX% continue look, quarter the summary

Operator

coming Peterson from is question from JPMorgan. Bill Next

William Peterson

the base then about the of able in gross your in any should also take business? question your I outcomes. margin all fuel here. and case range guess gross providing to the specifically, within for how we and on on exit cost how of of following rate Thanks reductions the details fourth into think should we think account Maybe provide. the assuming you're mix, maybe about margins And quarter sort

Andrew Marsh

Paul. ahead, Go

Paul Middleton

Yes, I appreciate that.

see a more 'XX be tell, for specific That onward kind lot. detail, you QX, definitely, a this. we'll expect more what of I as and sales helps Bill, more say and We tomorrow color. given volume. So But give we can to you lot would on

of product ramp leveraging lot better to we drive that as and will margins a and up. have We capacity that continue

be directional improvement that consistent be be think, QX wouldn't continuing to we've QX the directionally better And the at see in I'm it's end could the surprised of wouldn't that kind right -- improvement I it progress of in you're specific with upper can from seeing to that in quarter-over-quarter, sorry, numbers you from QX to if the direction. disclosed of I guidance. terms fuel,

we're more out where also opportunity we're sell So and even leverage we we looking more mix enhanced facilities so driving merchant direct have into market, can even of we that we're looking to at even -- our have. still better measures. opportunities the efficiency And pricing, even

in benefits we some side. and being, the last as being from should QX, of and on leveraging And the the benefits plants pricing efficiency well over combination as that X see the fuel so off of have that the additional come mix months, recognized

and So then it should onwards. continue to improve meaningfully QX in

William Peterson

is to -- on today? particular I what trying And get much speak But there then remains of to the further might missed additional like that as be what timing guess DOE left how on It or extent reserve any to seems the is done it, for capital guess, on going you I and announced sort DOE looking Just Is well. the top is have maybe side, of loan a to you're Or contingency what can there to conditions? I you poles, just done now. in Texas? capital closing it, at be but thinking the NYPA long of as of requirements? any sense

Andrew Marsh

Yes.

Bill, to worked in bring the talk you at like DOE sits detail pole to the equity about equity but to ways, the let making election for talk process know provide we see with allows tied us us partners, I We're clear don't dependent So to We side-by-side against to there. we're schedule say have going structure the I it, in helped And that is how on everybody to would look loan. let Paul All can about And there's we I'll We've a with project level. the to events. know process. schedule get by some a using DOE me know is looking tent. it. on not certainly, any to not detail. also an that execute investor -- tall process the sure of going the a but in Paul I'm we to that upon

Paul Middleton

that we've a had those company and the interest, talked We've engaging process learn think we're we're and about participating funds in doing to That's our at at be be learn symposium that number well. will very interested about others express of Actually, capital going those pipeline. strategic what about of in in a finance I more and some off, project kicked for could tomorrow dialogues. parallel stack the and looking more our We've partners there. Yes. partners

So I Georgia would that say they forecasting proposition the the look of and is of attractive. we're at what in theme to Texas, out that's very what doing do and commercial we're

In addition to the for pipeline. fact that the DOE provide is postured of low-cost incredibly with that majority this facility capital to the

-- factors on success all forward. of interest those to well us driving Georgia, and on in addition is of that So this a executing in to lot move delivering the bode what's

and encouraged, very all hard the fruition more term. and things to working at to bringing come near in those So we're

Operator

coming Craig from ROTH Capital is from question Next Irwin Partners.

Craig Irwin

right? it's questions a going best I'm lot answer I there from of to standpoint. we guess public to tough the know And these looking are ask because at it a the question can, in I So out really investors when

Andrew Marsh

Sure, Craig.

Craig Irwin

you've have raise continuous do pivot the shown be versus that the guys not working see brings to I DOE the been restructure business right? you sort flexibility in and operations event dark So year? last loan this to do on capital. how the hopefully of have we lifts that hate this, funded, the the to You plan one cloud, much a ability but it

congratulations this the So on $XXX morning. million

do already us? PPAs. what What for path the than the different you've feel still a laid out about up flexibility You from tied take to slightly you cash have substantial

Andrew Marsh

if with of Yes. we European our people not is going there can Craig, about who in it at It's we've be -- road look, long change think is financials. to an we project From equity would it have essentially X interested equity whether And there better joint just the online that most us. And a Texas Texas, be business funds activity and out the And increased I if I you the an looked partner but point providers view, would 'XX, at equipment and obviously say to be worked in in much to doesn't would have 'XX not next or building dramatically look, being impact you with time are loan, DOE And different effort years. a happen. who already. if bring doesn't look maps. Texas in the Texas of plant. for the

look months, I years, think look a and XX you if growth I've I was handling for quarter, take Europe Europe material the the at and XX been XX installations last the of in the doubled business where if I in step last months. over for back this number in

you the from electrolyzer it's activity. of international flowing at If look most revenue,

oil outside that possibilities, the think through If call planned growth the at and has capability much the and on it I U.S. look of you it's the industry. U.S. And earlier, don't integration of the mentioned Plug the has gas much anyone is acquisition in outside I established our of folks

top-notch Vietnam. have integrators We in

in integrators Dubai. top-notch We have

have in Europe. top-notch integrators We

pivot think will of more negative the flavor expect. the we an is if U.S. have international that I policy probably more So than

time the think on was administration first I to mentioned the Trump around. helpful I the call

helpful. certainly I think the overturn of Chevron is

it's out is XXXX tend So middle. usually life I things plays I guess watching kid. been young the a America was towards And when how elections since

Craig Irwin

with I that. definitely agree would

right, your So a Plug, to tens the success, more save if are money. operating forklifts with customers' these able environmentally reliably day you Walmart, able in next to question, deliver money my them early every unless in package with to of have save and sound thousands of products, history success, back your never we success at you tremendous have look your would been

and things you different opportunities. see and business Do several looked Now we've money you've still years? like the in electrolyzers, things of and about invested other capital of at we've some transport some model, same years, of applications the the and last these pieces the to a that save opportunity in in your customers' in lot of like heavy XX last off trucking on talked these

Andrew Marsh

expound. Okay. about touch stacks this let I buddy, going mean, construction I costs. to have call. up. All to I'm all say you of the opportunity on to will during electrolyzers, my to Sanjay, is can speak and I've going is not let me, electrolyzers efficiency I and I'm him speak to an give

Sanjay K. Shrestha

electricity. of price At

Andrew Marsh

And electricity. price at the of

on So I'll you run let this Sanjay. one,

Sanjay K. Shrestha

So right the think X-gigawatt the large electrolyzer a instances And Andy question we're on There's for scale. some right? Craig, on we're design it's have your pretty by very basically way, working packet. is customer being where with of some of a a the ammonia, very, would, engineering I with this but offering referred lot our is and right basic of because healthy me pretty able like you this large talk a many And one, is right to a deals, mega as does to of efficiency, discussion #X. Item source where you with bit. yes, the elaborate very different e-fuels, item kind like things of -- value power, economic #X let provide electrolyzer, allow hydrogen to bit, proposition, sort if derivatives, combined of little you when on on attractive this right? them That's touched combined in

sort to that's vehicles right? of lot a comes the really. It's business, any best it's fueling with talk faster, we almost if lost actually even introduced more of a start slower, when because mobile energy on And roll entire So the one them you about of So haven't faster. thinking the hydrogen to solution product been play, offering, product kind have infrastructure that when we entire of out which refueler solution efficiency that a lot you while just really market. wheels, it's our market, opportunity the the project we before gets liquefier in about even hydrogen is that faster haven't do And you moved a of allows right? Then this them infrastructure would. testing heavy-duty built, allows mobility have perfect actually like into

like solution, facility sales do by providing the technology, a even standpoint, savings enterprise providing a the from liquefaction hydrogen optimization for our a liquid sales, where of of and and an to hydrogen, as drive all giving our perspective, continue that growth customer, and economic to gases or fueling where think of really cost storage, really us. this proposition kind the lot electrolyzer, customer, what's where we that increase our facility to a here, we it's customer, I So you sales there's of right? going by really design able can for from and whether it's that's a benefit our as better value we're a the offering drive Craig, for trucks from as go be cost combination our a a right? And better final So we'll value do that hydrogen situation one I economics and think to thing hydrogen our lot for think entire of proposition

Craig Irwin

interesting but come green have I Then things is may. question, XX last desk that my a like next right? could years, that nuclear have and reactors the has in last So years, hydrogen. across probably really business been period some it a hydrogen for the direct be small of the use number is production of if There it interesting looks something longer phenomenal over much gestation of

see the order any down leader. market guys get pretty that you energy Do an Now production the you hydrogen in you by technologies the production next of of are be since could market could breakthrough magnitude? available potential decade cost the approached that bring by in everybody much

Andrew Marsh

you that's to take So Sanjay an and question. when add I'm going on it will shot let Sanjay? maybe I at get interesting done, a

Sanjay K. Shrestha

in it, tremendous right Then if the challenges to stationary even expensive -- is topic you going lot think small that turn to electrolyzer of grid a pathway When can to negative to way, view this in right? that The company -- and really energy a the further to an a until So if of working question, really to renewables more electric you cabin Craig, jour be right? about not out, keep renewables be hydrogen. to start is hydrogen and hydrogen about that from we keeps bit hydrogen by even you with our du you pipeline via all would. And the to of go how our sudden, put modular your when decade. think right? right? here the that becoming around of an come it I the use electric you more that product, already think in Then produce salt when that Then potentially hydrogen grid, have the of electric obviously, which, and before very become reactor grid store terms the a term, you when a or way, store more we're drives you adding some would, a on can by perspective, and clearing our the right? Because that's getting cavern, renewable think you use storage. to of start our our really carrier, of is a near can can that's amount and now at hydrogen, I you price, grid, that, end through energy for growth right, to going the of So stranded

And where time major really envision we growth, a to world frame, XXX% somewhere the renewable a down you our inflection plays product can stationary almost role. where major here Hydrogen actually right? this point North a in in have that is will that head of can path start of grid America. So electric

starts larger, between of where up of product there stationary just baseload larger, I you LCOE the hydrogen becoming right as it exciting. But modular that cost mean, big reactor scale combination a where Would becoming but this more or starts installation as is play that center as like then all becomes EV As we super ends hydrogen reactor, up would about well. attractive hydrogen cost it. really that grows, plant, about know as perspective, attractive, small small to and an if right? levelized a of could up the modular becomes of ends be and the Our green electricity, is think the ends grid Craig, you becoming quite the to for opportunity, relates for a backlog From of the major charging to it Even not become right? data the with the cost role, even a peaker more producing certainly as it's and levelized well that how very scale anything?

Andrew Marsh

just I a you -- put load very world Sanjay, add, I when the the grid. they hydrogen Yes. where similar have a on loads kind being need to of when to is generated view would with

Sanjay K. Shrestha

the grid. Stabilizing

Andrew Marsh

drive R&D lots towards of efficiency how peak kilogram. maximum the to And have -- lot the the it of team is an Stabilizing the do improve of stack that if road becomes about stack. issue. efficiency you and of XX a continue efficiency And -- thinking we our then and kilowatt work issue a to hours capital really the maps to of does start electric where there's grid. cost per the Or

The make is little so other which systems how do are very that you construction LEGOs site. there's on very,

offering that how fuel Sanjay is the also to all couple in dreaming mean, proposition stationary here whole electrolyzers and XX% the a that little customers. I gain with of Craig, what product efficiency So is cells is make is to value a work think what then with efficiencies and put really from heart that, of curves you'll total generate driving electrolyzers efficiency improve work make construction potential hours. Coupled when improvement in off hydrogen site for it see and you learning XX%, to I and

Operator

Ailani [Operator coming Our Instructions] question next from from Jefferies. Dushyant is

Dushyant Ailani

Tennessee. Georgia to want and ask planned for on quickly Just maintenance the

little involved? the maintenance given cadence bit could about you going And recent forward? maintenance do a share just about what start-up, how Just think we the

Paul Middleton

Yes.

I think is nothing astronomically surprising.

have, that week. to probably most in lasted year, about this nature, of pretty normal year. this think think had nature, Tennessee. I we have done a maintenance, shutdown of It's through twice routine. We general a And facilities got like one which during last XX we'll shutdowns much I in early just plants days X a will we'll the running like -- October most folks for

is we time make did the will storage during we're outages. maximize storage the local we I Georgia think time on us this that backup and during site make is item during that the sufficient we down important sure to the so sure provide and going that for -- and Tennessee

Dushyant Ailani

a And monetization. ITC transfer second then just one the on

$XX guys think of previously million think a about I have you then and I roughly $XX total talked roughly million.

timing Just do the on out. and wanted see check of you to that shaking how that

Andrew Marsh

you to that, take Do Paul? want

Paul Middleton

Yes, sure.

longer because So working things never of It just -- expressed it's it. Plug than a has had and have conversations. actually those nurturing we're It's parties difficult does, that like taken But we hoped. interest, we're multiple on it's have diligently we the first time. lot

firms monetization still for many, one. us. there's the who coming many U.S. the equity opportunity get buckets in in good there's one on think a that's done we've with engaged I broker chance got this meaningful it additional can there And the the of handles companies first of weeks. working And we relatively of heels tax top-tier

even before could sooner. we So do I'm even that potentially not if very it optimistic year-end,

Operator

from question Research. Next from Chris is Wolfe coming Senyek

Christopher Senyek

I wanted way. to another just ask loan about DOE the

in reach administration, canceled? your get the the loan, the considered Just need commitment to I like change perhaps safe? thoughts pending be conditional be to on given order close do the can -- of the is durability like Or like in for commitment to financial wanted it you conditional

Andrew Marsh

I say he anything add we the with to close we I'll discussions my the with Paul thinks change from laser-focused DOE, in And should feel are would administration. let I before add. DOE quite the Yes. just comfortable, but

Paul Middleton

so the to is just money that federal I words the them in the with way program. has the committed say of the government guess I -- this -- the would Yes. and commitment

a document. something we us. of the about is for that execution it to everybody this So behind before, easier do have that's more not this absolute and it It's lot good to but be obviously necessarily would get

engaged. I a all us really me for said, that to done get we've And simplistic is for the thing It's as a the everybody as But have meaningful of help more a is it for that quickly. happen, is possible. the and so final meaningful would in and it's to thing things really get pretty over it they're this getting us focused And and on Plug. be, just we're finish a magnified the they're done all to program critical good mean of detailed And final this amount And on ways, steps with here, clear for the really quickly some helpful. got Andy plan alignment. providing energy there's and good line as really support them.

to continue that and provide we're we'll this to beforehand, get excited and So as done updates we unfold. going optimistic see I'm

Christopher Senyek

more just And for one me.

the know rules I to XXB probably -- hear it's are guys last finalized. time we're you Just from before the going

Andrew Marsh

You'll tomorrow. me hear from

Christopher Senyek

to forward look tomorrow. We you seeing Yes.

Andrew Marsh

lobbyists Democrat and Yes. to But what's hear question? and there We be real you'll them. lobbyist, will who the Republican are some that actually have experts get tomorrow from sure,

Christopher Senyek

rules you what ideal Just guys be? regionality? it would Is final additionality, like Plug's matching, loosening would What time like want?

Andrew Marsh

Well, additionality senators and we the rules part should many that the the and in believe bill regulations. legislation not of who not additionality wrote be the as is of

very fully we'd takes comfortable XXXX, matching, I like XXXX, it's be looking it think time on in. where Europe where

I regions be regionally, and legislation. And part I again, that about see the X States, or was situation. the probably X like time matching, that the across whether we'd it's think to that, of United questionable think really would ideal

the I instead think not congressional should the our view law part of which follow all intent. along the administration interpreting positions, of were been has

that's that be because So that of of will I different situation ideal the be -- for And Plug. probably Loper, would think one got that's mentioned I others. challenged anything by the probably tell to you, reasons we

Operator

question Next Amit Wainwright. Dayal is coming from from H.C.

Amit Dayal

like respect XX to or XX for what's with line contracts? to months the longer? delivery Is you that time maybe next these this So it contracts BEDP have, X-gigawatt

Andrew Marsh

going that, Amit. I'm take Sanjay let to

Sanjay K. Shrestha

Yes.

and opportunities to like getting well, that of goes are sort front-end think as out terms the FEED a should study, So however, to adding to more gigawatt And it not about gets that's design engineering in certainly of new sure this you to drop study goes from detailed in than it think sometime but some you how full I right? going believe to then package stagnant, how going and engineering mind, be in what does to likely a keep I final X-gigawatt, quite bookings our investment XXXX. going talking all keep This I'm opportunity. number we're basic actual to of And varies, believe to XXXX though, expect, and we So from FID out FID is actually of customer should and that to becomes bookings stay mean, getting we that that we've to being right? And get X-gigawatt. there'll identified a those design, to orders decision. this is few in there

Amit Dayal

on in to is complete but is that incentives, And dependent X-gigawatts? Sanjay, et I cetera, know materialize early overall, stage of any a sort regulatory that manner? it's

Sanjay K. Shrestha

in another actually in meet some to pushed again, opportunity for further right get that the out that Australia. and a of X-gigawatt Europe design opportunity entire of X.X-gigawatt We basic Andy X-gigawatt could where policy in is earlier, There's majority actually or right, in example, clarity. But that of U.S. that, -- X-gigawatt, that In there this terms Australia. That U.S. however, mean, referred of have to There's engineering XXX-megawatt to of that the mix that's megawatt if Australia, that. here really so most market. and opportunity you any as a I what have So in do, with out the about could XXX of of right? really packet, that would, lot doesn't the is Europe, really interplay Australia, Yes. in is related X-gigawatt, of opportunity Europe up. makes

Amit Dayal

for for source for one time power hydrogen? we should last it's for me. do as to about and relative Do different applications sort we well. Or nuclear energy How different think take this come -- Andy, nuclear see maybe, to of can how because hydrogen competing you as be about to designed a going nuclear purposes? you And and see

a But hydrogen you near-term not longer see do it's coexisting? So threat, and nuclear obviously. sort term, of how

Andrew Marsh

the to possible support you can low as gas to how to to are during drive want in feeding as replace products of which evolve thing. good with generated combination time they activities the great going use cost I the think electrolyzers down. for the I to as as deployed And replacement a make hours. We it was gas frame, hours, on peak off low. the new talked to you're generate which of in centers. opportunity hydrogen think we decade. of sure hydrogen some who though nuclear data a lot well become view and equipment big which think world Plug down Certainly, during construction ramp of But of about in And the to a of grids hydrogen of firms turbines that market hydrogen will that power power get Even into. you can products, what turbines. this view for network. actually as a electrolyzers able the did the first being us is costs and world the today kind leading have of more those as to I and kind much have more with the you efficient, as when costs be electricity actually, on that up see as put Sanjay type and stationary into consulting kind important power stationary one devices, them are complementary. for as is 'XX pipelines generate demand work deal really believe nuclear will And I and rest tap -- I

concrete during cells So ultimately. in electrolyzers fuel up real and next solar believer grid the substitution and for really markets, it's refineries, and nuclear, hydrogen today. the X in wind, work and ultimately, for generating it's that in manufacturing, years, ammonia a and all in which nuclear we're doing But hydrogen I'm make

Operator

Next Levy Truist question is coming from Securities. from Jordan

Henry Roberts

price with improvements the the near-term of Maybe beginning It's you're talk material Can of to for Jordan outlook the customer kind year? of just on the to for some the you around handling seeing here. receptiveness the on start increases business. just Henry from to

Andrew Marsh

in the But than and twice we dramatically. We review difficult we year, us handling value prices, about PPAs. PPAs customers, been would buildings, actually will than was by and really this. resiliency pretty it add kept will material if handling. After and a years. electricity to probably an process proposition you that. stronger to isn't Jose They symposium We But has we backlog see would of and growth prices honestly, of that in And million fourth alternative. to grid which move and revenue XX% I actually tomorrow. I knew have a the proposition material this week feel got for have quite think should our value roll We increase much, increase thought. of XX% others we next tough business real tough goods an customers. rid the to had quarter. during with The the out Always a during uptick And higher shared stronger, been found more look, challenging. good this our got we -- the many we bringing is The everybody in year $XXX proposition value on place. year, is there much our rapidly, of our X.X see know

Henry Roberts

have to at a looking maybe gross and business here? of there just kind profile positive the improve future but at flow this then margin at of more the further path looked And margin you lines for cash here, to to and in all is or question divest look next could the are of year,

Andrew Marsh

you a at We're of always over at and and when looking this sat don't on we've Sanjay, spectrum, down see at we've value, myself looked And whole and months. the businesses. Paul the we time look lot the the and spent

today. no is question And directly so the your answer to

Operator

Moore Tim is from Next from Street. Clear coming question

Tim Moore

maybe the to production based I customers? actually last and at targeting week, I'm airport ask start outcome tax coming the when DOE my were questions but symposium, you XX and would conditional to credit gas your But oil election answered. or loan marketing wanted on

Andrew Marsh

our if biggest I Well, gas our at you look oil electrolyzer are customers. business, think customers and

Paul Middleton

already We are. Absolutely.

Andrew Marsh

We already are.

deal mean, and Galp, all in oil and backlog BP, good that X-gigawatts of oil a companies Iberdrola, probably is gas. they're I So and MOL, gas

Paul Middleton

And hydrogen derivatives.

Andrew Marsh

And hydrogen derivatives.

hydrogen you our think on a so -- that positive. a market has there -- the I focus. touched So really point is And for hydrogen that's today a this big, is green big been and and

really gray of have a hydrogen by business. there's whole happens the your hydrogen don't XXXX, It's by in green XX% doing that's XXXX. Europe, replace by And And to hydrogen. substitution it to change -- a You of goal versus really whether hydrogen or green of gray push. way XXXX

Tim Moore

hydrogen to wave. just up really blue going them try we keep substitute Yes, to going I'm and wondering a for their wondering hydrogen. more target about to reading I it just step if was if appetite blue you're you're because

Andrew Marsh

Yes.

We today. and it we're doing are,

Tim Moore

on question the had other gigawatts allied green And ammonia. the Australia, of the X with your I BEDP was

press You a revenue or could the given half late it's of package for that early about about statement framework recognition of be through your release talked out binding milestones? deal XXXX, delivery. nice last Do in the a complicated agreement XXXX that there'll that sizable system put flow amount XXXX with think you income that month first design

Andrew Marsh

take this that one every Sanjay works let of since does he what day. he -- I'll is part

Sanjay K. Shrestha

Yes.

not second So probably and opportunity. 'XX first It's half XXXX, probably 'XX. revenue a half big

the have decent of amount right? of are to Just to given of work given rather we size half a than that first So both and project probably the the that where project, do, scale more of we the going year. today, second there's it's half

Operator

Next Andrew question Stanley. Morgan Percoco is coming from from

Andrew Percoco

of been obviously here just a renewable just of and green I new of has has to of electricity, some price higher your challenge be maybe cell to financial these Obviously, these the those around exposure higher kind power, meaningfully markets scale of providing and on longer-term in have point wondering, business a ebbed unit company your kind hydrogen back scenario where you to a over just material vehicles. of more a maybe drifted it's get newer businesses. and of The the strategy to stationary order of flowed and economics strength? units depending which handling level it's somewhat and on-road back reducing to a thoughts your fuel markets just roots -- kind there of the would okay here. X around some last And of years. I'm going kind it is your like question

Andrew Marsh

take green comes -- I look we if the on at, we in nothing the as ammonia States become that, plants, provide hydrogen. huge hydrogen like in well substitute hydrogen a And to that to $XX as market to gray Sanjay in derivatives That is you're hydrogen me, opportunity. When for the huge in huge methanol the X million a dependent United Andrew, question, to today electrolyzers, the to missing fourth that just It's mentioned. outside did be the think, and quarter. quarter. market works going third higher companies opportunity it

financials -- of the You're margins and plants gross as make hydrogen stationary handling need material those the the improve. we already value That's plants ultimately seeing the to in work.

where going That's material a path know are fact and look the continue to down the and growing you we're I But markets just and sound handling markets when get down. at going to today may that are not the improvements than electrolyzers improve. to interesting. So in that hydrogen, it's bigger you hydrogen and margin

Andrew Percoco

global see for economics in number fairly U.S. elaborate to we've and the canceled high-profile what challenges. maybe or even the mean, there's green pushed on a And seen, hydrogen I you of I attractive get in your little some you obviously, if some do bit. the Europe, cell maybe been some could technologies. just think most But markets fuel electrolyzers unit right a of projects

of curious that that comes where or you markets commentary kind what So bullish from, global I'm just thought like seeing are strength?

Andrew Marsh

of is So one Sanjay, you X-gigawatts the BEDPs want to take example. it? I think

Sanjay K. Shrestha

than our basic think to be engineering that about of package. Andrew, will number just much if So X-gigawatt funnel, right, you start that think I again, larger even design

getting it going So that's projects looking at the we're they customer, get taken. frankly to right? secured a some the we've potentially the to who to get approach they are moved close? able is that's right, given this have the speaking, be industry to they Are of getting offtake? Are of going way FID, financial the And the to of But state the is, some surprise. not where projects canceled,

look our when continues on side, at to grow. So right, pipeline electrolyzer probably you the X-gigawatt really that

just in to That's the we mix XXXX, I that and year business, good certainly off, point for pretty briefly expect fall at we about, going is a big Europe mentioned will Australia. probably Some but as pretty more mix time. earlier, booking like likely and that right, this be electrolyzer feel

Andrew Marsh

told us customer Sanjay, that we've one undersellingâ€¦ know yesterday, been I

Sanjay K. Shrestha

Our capabilities.

Andrew Marsh

it large and capabilities large in Rochester another have â€¦our global facility plants. our a player I mean when comes hydrogen to today. was global electrolyzers I player. it that's

they in infrastructure and I support has if probably market Europe, Vietnam say, integrators capabilities our and Georgia, who to So anything, think see growth. else see step the we see and I Rochester, this -- and folks Dubai when think back

Operator

is coming Sandler. Kasope from Next Harrison Piper question from

Kashy Harrison

the to I It year. of And just at the end fuel to if had have I PTC. just fuel not, a mindful of XXXX? your be time or cell ITC are And about the of how one. expires expiration wondering your pricing you qualify this you expect I want cell the for ITC. here. question I products the tech-neutral in for approaching if customers was ITC discussions with

Andrew Marsh

cell probably only can We're company neutral. fuel Yes. Good really question. the leverage tech that

than have any challenging company. cell other at moment. fuel because puts it's the because in a position our mismatch Now green much it a are the we hydrogen regulations us platform, better But

We like back plants been the continue on work hydrogen we who to being the like before. there sit is Means So and important. That hydrogen for are know have think in XXXX to Trump extend it's have and and green up, said, good going it's did really under fuel cell almost that and I ITC working. the ITC much signed entire Republicans question, House are President plants our last industry of working for that -- Ways who them they to many there's XX the over

cell company only but in with that workarounds. the we've what have So important, that because done we're plants in yes, of fuel industry the probably

Operator

coming Markets. Thakkar Capital from Next BMO from Ameet is question

Ameet Thakkar

I but quick don't X part, know about ones. the least

the on follow-up quick. real to wanted convert Just

are that monthly shares, what ability common monthly. the guess, that the Is convert, do So to kind to conditions have the convert they to correct? I of basis? a have have buyer the convert on into they of And

Andrew Marsh

Go ahead, Paul.

Paul Middleton

Yes.

If provide like to, a month. have we to shares. So can choose option, they that not cash. have a pay in the portion. they if to limited back It's -- the term automatic we get shares. It's we the option If per if over elect option, that they'd do them they amortize amount they

position loan. as the of go, that Plug have like progress they're -- clause for the growth and duration the of continue and a and long short capability where show gross company margin to of they they think will with this So view amortization the of would we that with the stock -- certainly no that. We will and but reasserts the

So a they conclusion, that ask for foregone but will optionality. they it's have that, not

Operator

the reached end I'd question-and-answer for have any comments. over like turn floor session. to We or our of back the closing further

Andrew Marsh

for either you thank online Plug in-person I and to seeing the the look Symposium time So folks taking many today, tomorrow. at forward or

thank everyone. So now. Bye you,

Operator

does teleconference Thank you. and conclude That webcast. today's

We disconnect participation a wonderful your day. your you have for this may at today. You thank line and time,

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