HYZN - Earnings call transcript Q4 2021

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Operator

Good morning and welcome to the Hyzon Motors' Fourth Quarter and Full-Year 2021 Conference Call.

As a reminder, today's call is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. At this time, for opening remarks and introductions, I would like turn the call over to Darla Rivera, Investor Relations Manager of Hyzon.

Darla Rivera

to quarter welcome earnings full-year and call. morning Hyzon's and fourth XXXX Good Senior Relations. of Darla Manager I'm Rivera, Investor On today's Mark call Officer; Financial Pat are Craig Knight, President Officer. Vehicle our of Operations; and Gordon, Chief Griffin, our Chief Executive issued and that release Web at can a Investors the our presentation hyzonmotors.com, on our in results found section. Hyzon in site, press today be

the regarding under As subject uncertainties. impact and our financial may include which contain forward-looking a statements and disruptions chain reminder, our supply and and risks customers' operations, and of comments and the assumptions and within performance, and are future this contracts, various future including product call may uncertainties existing Company's expectations to global orders performance

results to materially forward-looking updating complete as to filings furnished please required by this any more our the for differ refer we of X-K statements. statements, no was which Except a issued the on press and release discussion Form responsibility the forward-looking actual with assume SEC, uncertainties morning, including with risks from For cause the that law, could SEC.

measures, call, financial to the measures a U.S. that, the Chief which Knight, in and to we I refer is and Craig press with detailed of measures of with am is the EBITDA was to about over section SEC. contained Officer certain available to site GAAP also morning, and the pleased reconciliation in our Hyzon. furnished And EBITDA. Web non-GAAP the issued Investors X-K on release these this nearest Form this Executive call information adjusted During More including turn

Craig Knight

to truly reality come Hyzon's that made the hydrogen-powered just debut. months us for our we for The heavy mobility this public remarkable cell thank through eight think and that, a you of Darla, Thanks, everyone to fore fuel It's Hyzon. joining morning. year was ago technology. transformational proprietary has to XXXX for

of Europe trucks chapter. Foshan, contract put and this are cell but we trial activities anyone During United a We the eight States. customers million, fuel cell else city and like of fuel manufacturing, kicked and in of that battled time, Hyzon validation off Australia proud in delivered $XX electric with in to first another supply China, total we XX Asia trucks challenges both the chain value into the in

to cell Additionally, And we fully months. in manufacturing Hyzon coming be serious expect well in U.S. is the commencing stacks to a proud we our truck. China, in and commission fuel company integrated as and fuel the that first United initial local Australia. gradually system States builds the in production Europe power the X Class as And vehicle up are of doing production cell ramping U.S. facility

historic the mover fuel hydrogen heavy proponents scale, and fossil designed fuels. and as positioned the an During work economy that solution the zero and the on the partnerships quest We and hydrogen be decouple economy. pathway play, commercial year, the commercial technology, consensus at the them of highs decarbonized to long-term to solid the dispensing is our at through high-utilization for We is to trucks, intensity of and oil emission pleased transition value, solution leading from to decarbonize of the as foundation hydrogen to independence increasing supporting transport first creation the energy in pace. global low industry ensure hydrogen to transport by world. status are through securing at the and production laying be carbon a Hyzon hydrogen build-out accelerating the adoption of volatile to low-cost cell Hyzon executed continue observe have need for as energy see paramount the to be around ourselves key clean some hydrogen prices reaching for vehicles will infrastructure, hydrogen low-cost can to commercial we at shareholder the forefront points, believe leading with in continues the

so While that cost more most challenges to with Hydrogen California electric of remain is enabling overall subsidy as programs follow. to the cases. in for states accelerating, and fleet vehicle European and only for leading is is heavy-duty on implemented demand achieve the countries can the in which not being comparable patterns, grid way zero importantly, the the too solution utilization we diesel zero adoption with parity why consumption that a replacement to commercial is mobility, Achieving demand but, emissions dependency we long-term them their to those committed creates offers today, crucial hydrogen new use and the owners especially ownership fleet there through trucks are diesel owners, with compromise. in and and jurisdictions various approaching get with today total U.S., more high

demand MOU XXX% since We evident seeing increase $XXX of increasing in our now well of as our an over a where as as provided, was backlog last order July vehicles we indication We have our clear terms. which purchase are update commercial million, an backlog stands growing XXXX. or define backlog, at with of

details press for as Further of XX And weeks. have pending end through daily leading MOU logistics a global operations therefore proof received coming to shared in be that the is order release company are We number Europe and terms, Hyzon vehicles with confirmation not in the in trucks supply will more user. are and commercial in counted under our a a recently on significant of a specifications backlog. hand

fueling of Hyzon combined which the fuel another of with will well green their this fuel cell first truck As successful as months our European first the of batch to customer's startup trucks. coming hydrogen capability in be production week,

equipment our hands, at experience available procuring in slow start cell our on the data. gaining is for letting highly road into today, North valuable them the for are America pace. the Hyzon advantages operations, getting performance customers' progressing real-world Our experience themselves to near-term with electric vehicles and After focus that and fuel vehicles due delays of a is

emission we X in about over at was to California. truck customer two delivered TTSI in months, cell recently first and port [indiscernible] expect vehicles look performance long trials. demo in operators. year-end. faces share significant is attractive of customers is and hydrogen-powered is we fuel demonstration trial incredible fuel those appropriate by the on experiencing due of information and course. There the as to Long forward America as daily trials And subsidies the start vehicles government within North the days Hyzon operation. fleet of to fleet enthusiasm of tailwinds mandates Our providing faster just challenges more the trucking we trucks, it the truck being TTSI Beach, our updates and adoption by for truck will zero routes to are The cell of Class as decarbonize TTSI have major on Efforts XX XX enable deployed long tested to to

by making scaling first work Electrode particularly operations. to U.S. before we producing look cell recent line, excited the excellent progress XXXX. on are our occurring of made-in-the-USA the Hyzon's Hyzon Membrane fuel the forward I'm system up we Additionally, commissioning Assembly production and end

wave a on of is we and To what cell, itself. The Just particular an well continues on support cell the to remind we and the on publicized everyone, zero-emission a when Europe having performance impact it there. the building the hydrogen affectionately outsized building most fuel heart important support at as to continue demand Hyzon adoption element the call the of focus to expanding cost around both to capabilities grow trucks, rapid MEA globe, fuel evolves, investment focus rate. family with a of

success Hyzon XXX as employees. other work something our many to know feel dawn grandchildren. grown incredible so over good global global working years come many I'm has not with and ourselves, for of build Our we whom down sense turned the team our something out and they and of ahead opportunities to for meaningful, well-positioned the are team for top excited for at children to but talent, we because towards

XXXX minded as energized uncertainty to lockdowns of terrible more and is particular, macro one to we we the hydrogen While broaden commercial adoption enable supply transition even further like in journey emission COVID to the chain situation vehicles challenges, just of our the adds bring with for companies And further. remain in and our economic partnerships optimistic difficulties. zero accelerate Europe, Ukraine example China the in continues and recent

As some fuel able Hyzon make our with we wealth track compromise. to commercial October. last during on around call, of our leading path zero infrastructure. is for of and one an introduced who you on easy this of quarter, I'd Vehicle convert it to Operations to Officer operations. our how assembly equation Global Strategy who and has that zero Operations. operations, us provide our to been the operations brings Parker Griffin, Pat to scale and Pat into earnings the may strategy from deep joined hydrogen Pat details of fleets are Chief dive experience some update production, President Parker recall, in U.S. will supply help knowledge side a day growing In emission a Meeks, fueling introduce leverage to to Hyzon Hyzon's provided we last like

Pat Griffin

thanks to Craig, Thanks, and on everyone the call.

the to locations. Hyzon and completion scale A we it across fuel key feet. will when Center will some path to located designs on expect with Innovation color operations, Chicago provide cell production, area keenly And we coupled development in I'd our systems. differentiating rapid is enabler for and like to It around land approximately domestic of commercialization comprised synergistic initiative our core our forward. commercial provide global our from modularized the this We're As prototyping produce focused XXX,XXX square vehicle of technologies. proprietary our our assembly,

Just we stages assembly the is stack. our and electrode the cell in which achieved fuel validated of milestone heart this a important past membrane line, month, significant

be cell global States producing end build. XXXX the to our vehicle by in We systems expect fuel supporting the of Hyzon United

sub and storage modules, Our Rochester both and Having sub support scale for continue us it builds, also demonstration U.S. to to allows plan. facility to as the prototype U.S. system, modules hydrogen both provide various as selected facilities vehicles production. European assembly vehicle completed is such assembly already Utilizing and will example. progressing

will production final party assembly per Vehicle ramped to upfitters has capacity such of via XXXXs As we U.S., the Fontein performed as build in year. third be which initially of Modification, the vehicles XXs

approach be vehicle Once build plan similar utilize partners dedicated scale we Hyzon while to us position facilities, strategically in dedicated Vehicle capital which during by in production this tipping point, Our China our the follows lines meet a model, vehicle region, aligning nimble to to production allows model. Until a demand supports demand. light OE reaches vehicle we early production stages. volume increasing to with Assembly

X,XXX to of experience. the provide and increase meet adoption existing demand there. growing to of platform plans meet production on in our vehicles demand basis. strong we've in vehicles own ventures where shift those our and facilities our Europe's road, trucks customer early For taking trucks global path Due have gaining our us to reconfiguring interest hydrogen cell for two our of established currently facilities and our region Australia, accelerating, footprint year to we enable a hydrogen-powered in multi advantage regions. forward, through demand to on the to is vehicles capacity assemble Europe on per We fuel production vehicles, get already and we real will capacity case of Australia, to believe Based offerings partnerships have operation our use a

made few teams to and we begin We providing our months as look with in progress updates production. the have scale short a are just forward pleased

Officer, call over Mark the Now, Hyzon's to hand Financial Gordon. I'd Chief to like

Mark Gordon

towards Thanks, security sustainable that Pat, with of be solution. issue. call, the addressed last energy a immediately who a today. quarterly and call paramount unfolding has our a the It imperative become supply this crisis path everyone Since thanks long-term viable is joined

cut the all forced will oil, gas low industry that be coal Before the years supply way transition Ukraine energy conflict, prices conflict capital a lower fragility can compounded lowering Climate and system now demand, the investment. the change energy in before global the Ukraine energy to driven spending, had has forgotten. the increased, by exposed not natural of steadily concerns of

a demand. as Hyzon comprehensive been the has electricity own is independent. overflowing According Most the Hyzon oil unknown battery the by can could misguided. gas converting to can benefit times the used biohazard grid as a could the completely natural needed waste fuel generation pollutants avoids were with vehicles With prices Europe, a hydrogen revolutionary hydrogen. of grid-based made called vehicles feedstock. potential such means and the More solution waste specific advocated important and investment solving for be process the Already can feedstock. to of is atmosphere. fuel could independence issue. percentage electricity or as large demand a scale the large decarbonisation oil its substantially measures up adding given versus Most be electricity to conversion the of turbine. Hydrogen of waste be to be independent have called importantly, curb natural copper. infrastructure massive from system, the converting so the Force. municipal estimated offset Air has transition still infrastructure hydrogen fueling grid grid for be impossible for. plastics energy that has based infrastructure for making it a long emergency agricultural as can to the additional cell for is The globally, portion The perspective, rollout waste A is and the both a advantages. While charging greater This energy energy cell calculations to Clean hydrogen and demand, production majority the Task supply This grid. transition heavy and considered the on multiple theoretically availability This have generate all micro IAEA imperative of of by replace non-combustion, trucks transition coal global of the waste required clean a to resources security green landfill Raven Even a has solution haul it to energy energy or included as to XX% importantly, municipal increased off in electric process the problem is path process using hydrogen the produced expansion eight grid and by forward. an

are a allows dependency Finally, on avoids independent. region forward. hydrogen fuels, prices We energy of transition conversion will with virtually despite and hydrogen important minimal mass nickel, increasing already path be to When complete the vehicles believe scarce battery world Cobalt, perspective from that is energy of fossil produced at copper from away the This will looked lithium work. only electric viable of the to any not locally. penetration. be bed resources,

these of of security own supply resources All have issues. their

not resources catalytic modest electric infrastructure platinum total built is cost For of and vehicle the will fuel vehicles, combustion fewer From up are an perspective, cell platinum for percentage converters free requires engines. a not internal as that the of argument included cell fuel The total that bus] investment greater does frequently economics. much calculations. [BLK take a and energy is than investment efficiency often for into cost in ownership account cited [Ph]

California of the us For and possible leading a thanks barrel example, currently only cell at is $X.XX market advancements economy inflator fuel kilowatt per and considered. hour, is electricity more if times oil also the where in three economy. fuel electricity Hyzon's $XXX the for increasingly trading equivalent our when need only has as more energy A critical today, provide security before transition now to hydrogen expensive. energy to Western goals, makes Europe per BTU that of to in hydrogen thought the It meet prices is to a unpredictable are of key is are is an vehicle to the technology. barrel if electricity In to Never in cell leadership seven oil but prices not world. the matter efficient, basis at equivalents. energy decarbonization times California, more rapid a double three $XXX than does energy not two-and-a-half now input

the an in count. manage in Hyzon as the item will expenses business prudently million Turning every company making dollar the cash the with continues finished sheet I to our outlook. to its with full-year XXXX financials, discuss year results balance on $XXX XXXX

forecast cash Total $X Full-year XXXX. the out were for We are in line sold million. was public. expenses took laid we went sales for revenues we those when of million. the We China, cost offset by in partially sales $XXX only the operating collected were which the in charge, vehicles with full revenues

delivered more in has this for the in booking history, cash of customer be front. during portion revenues operating to large up we a Once longer XXXX XXXX. another expect vehicles We collected China anticipate

SG&A. largest of those as SG&A duty of and the transaction in Operating companies validation one were well and heavy retirement costs. $XX we one have in foundational for essentially a were senior costs million discussed which great charges of the million, our development executives related trucks. time $XX.X user million nature Within were is expense for in vehicles world, CTO relating to year grants former the Hyzon's for truly comprised mainly of totaling to as of research end the previously, As $XX in equity steel expenses

Hyzon Adjusted EBITDA Hyzon fair liabilities. a for liabilities. EBITDA to also the charges to the was placement negative well reported private as million earn-out of million. the for the we to earn-out attribute primarily $XX changes value fair related backing or due in For full-year, million of $XX the in as out one-time value loss recorded non-cash items $XX and the net after in placement private full-year of negative change of a

Hyzon's to expect back-half XXX weighted be In will to weighted XXXX we the continue we with commercial year. towards to with business the deliver margins. XXXX, heavily the expect For geographic outlook, lower to XXX regions deliveries, vehicles, mix

towards regions expect in We XXXX. geographic favorable mix with to margins more the shift

trucks as through ever, anticipate we our supply XXXX. testifies, stronger While than persist is backlog increased chain the for demand issues our to

We commence U.S. cell fuel XXXX. power our using of expect in to vehicles our assembling made during second-half the facilities proprietary high density

in front We the showcasing later have we and our year. on made this solid anticipate facilities progress

A a in as of of Trials increase also world. ramp. rest the our an increasing or number North continue the facilities to We expect American trucks trials Class

on online. just demand to year-end, direction. -- we to innovations first and to discussion We vehicles expect within grows commercial the vehicles. progress in content as your to as our this intend gas the Raven in expect zero emission step hydrogen we grow waste By Hyzon, of ongoing backlog cells Bringing towards exponentially. and commercial to Hyzon increase be We of and is drive fuel hydrogen hub the one hub house manufacturing discussions

efforts that, both cost the total and in the like XXXX. EBITDA back remarks. margins, excess And now We innovation with by to of of XX%, medium-term deliver our call for operating to lowers vehicle closing fuel turn continuous are even CapEx Our which savings, Craig expected further. to ownerships I'd reaffirm

Craig Knight

it the Thanks, Mark like Hyzon's role and key Pat. to the vehicles. as In I'd reinforce closing, to to economy commercial hydrogen as pertains

the energy fossil independence mobility that Hyzon's an significant solution process. company infrastructure at for in the is green government facilitates clean in investment are world company advances our production and and expanding coming and from phenomenal utilization highly hydrogen fuels, is opportunity hydrogen point, the The versatile decouples We Hydrogen new hydrogen for the needed. high as a and inflection subsidy heavy technology energy The in is a commercial underscore visible availability, adoption momentum through years. in technology vehicles. mandates, the in emerging

impact our Hyzon leading Pledge, rest corporations we announcement joined we world, XXX is The purpose that commits recent XXXX, Our open full questions. and for decade clear, which as the this a until reaching attention. underscored made have you of net-zero a Climate line over won't Thank ahead up to in let's by by significant climate time your Agreement that, again, the with change. all, for And Paris on positive

Operator

Instructions] with coming our Goldman question [Operator of from first And line Sachs. Jerry the is Revich

open. is line Your

Jerry Revich

and this everyone, Yes, quarter. deliveries on morning, the congratulations strong hi, good

Craig Knight

Jerry. you, Thank

Jerry Revich

what mind. about and expect wondering you high-level the you Europe the vehicle talk you I'm expect Australia, the if that us to mix standpoint from anticipated your just picture as proportion ASPs touch XXXX, Craig, as result help come understand course China on of do versus well, could you a and from don't to if a over

Craig Knight

to to And disappointing supply more product more in balance. to expected we're momentum. geography were all a Frankly, somewhat Europe chains the had especially was challenging, mix XXXX and see where regard, in that so Sure. very favorable keen obviously, move just we build

once to focused out are and Australian to work to really ramp months, the we our vehicles delivery within in and the field the as well We stronger and are Europe XX aim various next activities customer U.S. validating delivery proven trials got very early out we've a towards mix successful. on XX

therefore, be vehicle that's guidance still lumpy. and to around predictable. we rebates accessing So, pretend moment by or however, prefer it is which expect And as too at but It's at favorable ASP, the in becomes that of say more policy in unpredictable, cautious the more to markets would lot mentioned also, vehicle Europe. the And such is still us why about for granular driven customers customers, ambitious XXXX. successfully Europe. favorable order the we XX highly mix we're give support, little overly another that irresponsible not business remarks to cetera. a once we The end And specification, we be vehicle into end rate and see activities in new end a business and still et a remain -- markets. type, that encouraging is very signs prepared And trucks we

capability production favor shift trucks. also We in that agreements XX hydrogen will, their this higher their see the to first vehicle it's to we've And geography over that got dispensing months, in markets. -- customers which successfully of months, one next of started into coming margin green deploy dramatically, be their that XX that activities can the week used with supply these mix turn a the mentioned we'll that Hyzon has commissioned our

disappoint timing things I'm lumpy of lack is are you sorry the the a of unpredictable, predict. very these difficult still specific of and details, to some So, somewhat business exact to but with so

Jerry Revich

should us think I pieces of use course 'XX, you over the Craig folks outlook free terms 'XX just we free update cash your over I and cash outlook and up? about the moving the appreciate as CapEx of of Mark, spoke about, if in on wonder that. And the ramp that how flow given course you'd

Mark Gordon

that prepared is where unfold to year my XXXX we had cash it anticipated that the as said public, and we where is I we feel as remarks, how will well. with ended So, be went when in we

Jerry Revich

so you on I'm page just still previously for outlook for year-end out your that 'XX holds, Mark, have the laid same folks you, so cash is point? the with Sorry,

Mark Gordon

Correct.

Jerry Revich

thanks. Okay, super. And

Craig Knight

Thank you, Jerry.

Operator

from Our with Morgan is Courtney Yakavonis next coming of line question the Stanley.

Your line is open.

Courtney Yakavonis

an guys. morning, online be give Can the first-half you where of by of were I think, are? anticipating originally, good facilities to on Hi, and update the end Bolingbrook the you us them Rochester XXXX. just

the the moved has XXXX. that But place? I towards for think issues. us we just Now, what just second-half facilities kind And -- the supply Is what the target were because the some online of like expectation are get update you it an timeline of those sounds in is? of awaiting on now equipment chain give hurdle is to and

Craig Knight

for it's Thanks one. the some and part Courtney. -- first been I'll fuel the making our Membrane Thanks, the And of facilities, Electrode a important make out. been has being MEA, system. some that very making in a to Bolingbrook cell multistage Assembly, this But it, multilayered process question. great at that commissioned Sure. moment. take MEA MEA testing of we've the is definitely our built leaps

on MEA been tests running we've to in weeks. the some four equipment six So, last

cell storage, making weeks. electric time during start but the the stacks And the hydrogen second-half, will the able make And here of probably be closer some systems will in complete We the year much to to cetera. of than et six middle to fuel of we include for be the to next four cell fuel the just system as vehicle itself, end during for second-half year, the build, the propulsion, the system honest, subsystems the year.

for subsystems on also some going well. in And Rochester being Some set capability prototyping vehicle up Rochester, there's these already example. now have of as

the vehicle production in important requirements before fuel as some We integrates but And buying year. that the Hyzon -- also although margins, of that a we're through because cell see buy end the back expect the alluding fuel vehicle Mark in-house. hydrogen when rate, the most part us cells we was gross vehicle cell prototyping feeding have the the assembly Bolingbrook have while thing we as expensive is the that's well, of in-house hydrogen our margins production from before, fuel that internal greatly fuel commercial at production from activities it improves -- to cell to back and market right improves made most and Horizon,

Courtney Yakavonis

the just on And understanding of the thanks. you about to predict. you anticipate to Can that that Great, give -- incremental year the relative And question thoughts be us do through, least on the then, a earlier to full mix you flowing your cost the from it's higher HongYun next at because to the tough I alluded some sales back contract? should them some this from year. order start through deliveries year, will this or flow Mark get for from think the production

how like I'm six more three seven? to kind You mentioned just by it until be flow years associated timeline much the operating is those or through rate? just the next full or two have what a need more will understand to at And they of trying to a enough labored revenues long that or then you history, is start So, P&L is costs that see with year? would

Craig Knight

Okay.

can part if have. of business we to So, first question, I touch the that on just in the relation

of then, those to, in little the the the of Mark treatment the expectations bit business in can We expect China materialize. some deployments recognition And and improving about efforts revenue some around of speak to China. a

significant and vehicle hydrogen end-users, also least or share support duty to China of at opportunities interesting announced So, information receiving a project company we deployment et beyond expect trials of truck be And have the in there. on only UN with Hongyun for the lot the but number one cities not one heavy a deployment we cetera HongYun opportunities is China. Foshan, which we've to in two of the vehicle It's initial activities steel demonstration from federal able and down government deployments.

to through of recognition and expect cetera, et Mark comment change. flows bit information the of to that revenue maybe about I'll how earnings, terms line provide let in when we Now, bottom a just treatment to

Mark Gordon

Thanks, Sure. Craig.

be it's will bulk think the no will next how important last few for of revenues trucks delivered XXXX. I through those trucks year the receiving this and revenues we for the delivered come Courtney, the So, think year years, to in with costs over

a It's year, more margin. little revenues strange operating quarter pure plan will their revenues their method which normally. account of for to what history. treatment, waiting more at point, of we have is be we're be for effectively able Hongyun but this will And that So, fourth to to reevaluate the for this we that in hope accounting for we accounting

Courtney Yakavonis

Thank you.

Craig Knight

Thanks.

Operator

question Research. from is Melius coming line our of And with the Wertheimer Rob next

line is open. Your

Craig Knight

Hi, Rob.

Rob Wertheimer

implies Good the bit Maybe months, a truck the over so limited which 'XX or your don't Craig, percolating talk expectations evolved about could you is could I'm to number morning, could last I there. wonder wonder think if just of of your a XXX higher I the have bit talk been so expecting couple sorry. production whether for you backlog expect, you about still little evolution whether didn't sorry, I'm everybody. how we're orders have XXX deliveries. I more. even we if know do I

Craig Knight

say continue months, deliveries. on will chain things supply better estimations. those dramatically to vehicle supply very interest the to reality orders three falling deploy Yes, a by many next larger that unpredictable, this able in deliver our for to up we portion be are portion and and expected much thank much We're and a really we is vehicles kind to not small doing be the We're of of deliveries momentum, pump very it's outlook continue would other the but XXXX very are building. we've more building been those the factors even do in you're customer But are that that, those to of XXXX. XXXX, is XXX if to vehicle conservative to Australia love how into of and And we a tending commit that by markets, at two year, cautious because more contracted we and you, sign couple though that will our particular, customer a is in which challenging. starting we're in quite four Rob; in think to great still only absolutely constraints with tempering They're agreements. question. markets from supply Europe to XXX simply still contracts the trucks, chains range improved middle right, of to still we're constrained build We the quantities with forecast reflection standpoint supply doing that end of a moment,

Rob Wertheimer

back-end story what think is the Okay, I makes even about production, those order you in hit kind kind needs through better drive to in gets to and of U.S. in kind order so loaded, little what to Could Europe what walk opposed similar the you back-half in talked that's as rising? of a of happen deliveries bit what outlook to clear.

Craig Knight

sure. Sure,

own make the way cetera. market, really all this ability deliveries the to for in and for get towards the two contract on able which all just dozens this considerations year, the is to even there's example, the works and assembly advantage of parts vehicles of of last work put, play that vehicle were and vehicles still inevitably with the delivery cycle is timing, towards the will So, QX, China, for in once and necessary China. were then loaded because that one portion we in thing components second end for our once to in deploy year able be the is take those these factors though deliveries assembled were prepared supply vehicles we that by coupled et we have always in will and use of we starting we But into up fair even that on-road December, the still only a year, to China certified have that, deliveries materials of

the contracting of dynamic, that the to vehicles. supply and dynamic contract subsequently and a components ability generally, there's of and market delivery but in what also parts China all build a around there means terms in the there's So, our dynamic more

vehicles, go of delivery stuff still important for the the the all we take building of to need and then obviously through certifying. we As process testing

Rob Wertheimer

if they have of they sources any right, And I'll of stack hydrogen? have the sorry, then, Do then all cell gets do of I'm Thanks, that numbers I'm source the Craig. could do one, in sources to their for and about last Europe what need, setup stop kind for just and out year, and trying is the they think need this build your this fuel customers to delay you year, there. what don't to be the

Craig Knight

cells, in cells first produced Horizon of in one is substitute fully plan couple fuel production the in there, the a our the U.S. supply relation is house of Cells out to fuel Hyzon of for once Fuel Rob, Okay, to the questions validated. that sourced

production. date. have hydrogen supply second before you So, token, certainly an year, we determining in cells deploying hydrogen, supplier around assembly, by the give the this can't But continue we would trucks but exact step. I substitute for options with to the And to still of European the end for of is question in Europe, be expect to house same sources then, starting of rate fuel the

So, late them. still hydrogen some there customer supply factors are with have associated opportunities that

on place work So, be station customer right. X, X dependent hydrogen a built example, what project, most imminently a Phase TotalEnergies scope with the the and else, knowing define where the for the certain for then on, a available, Phase is we new to or somebody that is do is as sometimes the by

availability filling there still are in witnessed stations, building no infrastructure, of many factors events from publicity involving doubt, all engaged filling of parties would But timing Europe, is very news of time terms hydrogen those flow does availability vehicle the of So, hydrogen. but have heavy Europe and and and you the are include in active which important stations. around some improving in

Rob Wertheimer

Craig. Perfect, thanks,

Craig Knight

Rob. Thanks,

Operator

Bill And Morgan. the coming of with Peterson from our J.P. is next question line

open. is line Your

Bill Peterson

first market. thanks questions. for morning, few Good the related a have the that and hi. questions Yes, to I taking U.S.

could reason to it when have the any been may if started, feels this guess America, in XX one fuel would vehicle time? to ago, to America you CARB-certified said and thought I in North XX last three Thanks. many you guess have you that just year. wondering could we I'm And how related like have that TTSI then, there's in North that that earlier been the should to of expect maybe compared a get for get mentioned looking at delayed, You vehicles kind ahead, six months I that. cells, thought

Craig Knight

Bill. Thanks,

were thing road few for certification longer there, the more bat. time of a of sort road when took with all in activities truck right just end a the our the TTSI necessarily answers validation, and around we So, do you one than put ended delayed, Frankly, all we something operation we don't first first three yes, trial and that with that whether than And the year. the U.S. have expected off things lot track around planned. the market into had spending was time, had validation to the there and questions intended. the Not up fact surprising you that

on question U.S. let So, make the delayed. trucks now, Beach that was in CARB-certification, we're will Long I comment I'm going number of Happily, on fact to little Port third the that moment. in a a the anticipating in a comment But Pat your trucks as around in for the

So, this. to that I of for our by had in somewhere anticipated I We to originally XXXX, around end that said we think was XX of XX looking believe trial be target. were kind where we trucks to Class-X expectation is XX the

validating thing. about some that heavily. feel this quite the because sort and vehicles of performance to pretty we've number And testing been come good the of of So, still customers had track we witness a we've and

U.S. we the and engagement fleet were about. So, we're kick operators trials, our the it in those we with increasing trucks, talking seeing by major interesting engagements for off

to on going over turn to just Pat, so I'm it CARB-certification. So, comment he can

closer I am. a little he's to than think it I

Pat Griffin

thank you, Bill Sure. for Thank you, And the Craig. question.

and relative interest mentioned testing As demonstrated is to Craig customer strong validation trials. in

certification certification, of always support six in that walk California. And we're for the forefront the working it CARB takes key to towards, months through course, generally four what process. the Of to

the are and go through us CARB. well we so, trial California order that, CARB, that in things had on So, progressing executive we've once received allows through to and so

Bill Peterson

that. thanks for Okay,

and deal that the power management control You actual so noted developing to forth. you're

guess trucks, the term thing time these just So, cells. show this is more of fuel your content enhancements? current of really we timing XXXX in the that of disperse development? up But see a is of is will and the more these When I obviously, proprietary what or longer your vehicles,

Craig Knight

development thing innovation mentioned, work a going Yes, and you that to you there's can as these internal as of the pencil on XXXX down validate activities. of some lot

now expect and lot that a quarter the between We next year of is done. end this year that of work in first

so, we able And Hyzon which gets looking us be higher during elements in margins gross the various those always is we'll some of to for. increasing vehicles, to Mark the content report time expect XXXX, that

Bill Peterson

kick what progress the you can more guess, us on Raven Okay, that. thanks be fuel assume from to that for sales the next in benefit starts in you are we terms economics? STRATEGY, to do helpful. off early see the will and Thanks. I If one your on should What the sneak of guess sales in, Anything I can remind economics business I nice year.

Craig Knight

Okay.

with in Raven up from half produce relationship participate for the it on which just with which Raven. with to to economics take of we I'll in -- is So, access us and we the introduce works how together them, early our there our hubs giving output to engagement outfield, producer which their

So, in let two more the it specifically of I'll those out gives coming us two, then, Mark hubs motion, economics economics nice and California. speak access the first on on the to

Mark Gordon

firstly, and think these day four of of I a it's hubs to a is produce going good half each that tons out about So, to hydrogen. point

enough. that's all think So, to trucks, A that, Class hydrogen hub enough vehicles each that's heavy when the for you going trucks. were If to XXX about our for duty do

XXX by those there they'll be So, enough with would two for hydrogen on year-end. and be hubs, trucks

look The that, we've that to low between the that's to it's those Colorado after to economics levered Once near in and in Chevron, go on in come in is gas think Denver. the over location Bakersfield In those and and trials also someplace or a do field time. debating first actual we going for Chevron And hubs think on down a teens field with hub, have Raven facilities. determined, hydrogen I to the they get being demonstrated un-levered we'll get still a hub costs future is finance the we'll to hubs up our returns we work now, anticipate will able that them. it's

house. equipment is nice in but expensive, the are is Raven majority manufacturing couple that the first of The thing the

of their sort some process coming. they savings can cost streamline as so, see we And

Bill Peterson

the And just of of talk economics hydrogen coming out, that. importance about the let's

Mark Gordon

us the around the teens that So, hydrogen low selling we're that's gave it assuming I when IRR, $X.

most is with the California will in a program hubs be a credit. the hubs, of California, large in likely, and in first at there states the be percentage subsidy or least Now great for LCFS will

And to feedstock. the so, exact what $X and credit little the $X depending between it's upon answer can hard from because kilogram the a a range economics are

dairy so, assuming waste And move waste better, calculation. IRR un-levered in feedstock. a municipal substantially imagine, as can you if just to we -- my my just gets calculation I'm I'm But

Bill Peterson

the front, thanks. All super exciting that in progress Really right, helpful. that's

Mark Gordon

Thank you, Bill.

Operator

from coming Canaccord. is Dorsheimer question Jed the line with of next Our

Your line open. is

Jed Dorsheimer

you question on off not, procurement Hi, what's guess moved the platinum from chain -- perspective? have you first thanks. are expectation If electrolyzer, I in? a supply the

Craig Knight

to we're Well, than about MEAs electrolyzer. talking you're our the assume going rather

indeed fuel fuel in the the we MEA, cell. key way, use cells, actually, for we So, but MEA by obviously, degrade get of electrolyzers is destroyed we're platinum platinum but that the -- nice in the The past can fuel make the the or in used the using is be that doesn't a thing the them don't cell. contaminant

platinum coat fuel life, and So, a kind an the put essentially cells of of out the cells platinum it. We're over very strip after together with to after reuse put out fuel of cells like engine eventually fuel end driving. happy into it rebuilt and back lot refurbished out new at cells those the take we worns the worn fuel and membranes

a So, cradle fuel on much that cells to cradle are technology basis. very

throw away. don't anything You

in Now, issue, expected platinum because not about we defer we the how metals our talked and the to Mark, only the in vehicles. the years. but of to couple might in economics batteries we've for see use comment on and here and chemistries lot relating talked that the kind -- a happening next batteries I platinum still the of platinum,

those in nickel lithium, no cobalt we example. still But batteries. very are there's in so the of or batteries, for LFP use we supply Now concern for interested

So, Mark, out. playing make how some see about platinum you a of that want comment and we to

Mark Gordon

Yes.

and exact out while use vehicle. But fuel everyone the amount the it's modest, focuses as of will we key I So, per for is we that don't and what so cells, iteration in material of platinum give fuel to we're say used drop cells. $XX,XXX let's our on new of talking that amount low expect well about as for time over single platinum we say the platinum vehicle,

this exorbitant. something to but not platinum mean, that an they're look prices. not going from a is I pose ultimate at up ago, they're if is constraint So, you year

Jed Dorsheimer

want asking procurement strategy where of the to Ukraine I given that's with I invasion to most and And constrained, be Well, I what is a guess, element critical now, where to is going from was just the platinum with you from was war, respect whatever at atrocity, your perspective? coming it Russia procured call I that right guess. that's

Craig Knight

got I you. okay. Most from Yes, platinum comes South Africa.

South Africa is the major source.

Jed Dorsheimer

Okay.

you're seeing issues that? any So, with not

Craig Knight

anything buy don't from we Russia. No,

Jed Dorsheimer

effective I'm have really are Why to sort guess selling? curious demand in that similar you're is terms follow I there the you guess, a now geographical I job then, so of Europe. And a Tesla a And vehicles that in terms quite of done demand the a where issue has locations, of think just in with localized great. path it, manufacturing. they're U.S. not it up fuel I there? versus Or in wouldn't is being different you limitations why where relationship manufacturing Shanghai Europe cells, shipped you're starting the about frankly the if just Got making in of

Craig Knight

one. that take I'll Yes,

our have for five have serve supplier U.S. to focused for the within us the that had IP Intensive cells, our we are that U.S. the coming And are always a markets based and us, years. to fuel we we had XX operations. while, We've have we upstream have going time. of think two example, these of important as this for be fuel a So, America, operations, based geopolitical we also base believe key to we base our of North company, and stability as dependable they're it's domestic core in of very And us operations to because in part to that cells. that'll production it's U.S. about very that intended concerns over say, a well manufacturing in important Europe

generally, very fuel industry, to the and and there's think fuels, supply to transport MEA for generally, I very going of a think see heavily labor is if supply get and It's fossil benefit whole of the the domestic you with ahead heavy cells. U.S. our security activity if think naturally that's not from alternatives, heavy lift come So, the And the important. industry clean intensive make I about of for vehicles, you hydrogen, to industry to as basically feel process steps. lots lots the a few opposed a stability quite people is building and And a local which line, lots that a different you it's production very car, fancy to of with involved and building machines, of fuel not long-term humans. of cells for is of It's and very surety complete lot of robots a to and intense. supply. see process we people, good of lots And also is lot

Jed Dorsheimer

a question Got this in, that it, you I just great. hub talking sneak hubs methane gas about on And our that conversion? one amount is and Raven decent hydrogen to of time first the bio-waste but Chevron to last a Raven is a to a recognized hydrogen, is but hydrogen with it, working to or first spent the market,

Craig Knight

going actually It's gas. be to flare

of I source is gas. the think the most likely

ahead. go yes, -- thing nice the So,

Jed Dorsheimer

or flared is be was would it's intermittent say, is curtailed to that I be that to so if gas, energy, going going that so continuous?

Craig Knight

No.

Raven of stuff. out strip can flare which worked conversations, have don't out, these gas, I'm not system means frankly, the details are take the to Casinghead in but can take you NGLs being it those gas, and So, or right the and thick

And companies gas would out flare it there. system it tons a But a energy a day as and system. four run And on robust so the can problem it be cannot solve which there's large it's would this the gas So, an can do. consistent looking bio at like frankly, RNG. well more number of to consistently, run gas, no, on SMR

Jed Dorsheimer

for That's great. it, appreciate me. it Got Really it.

Craig Knight

traditional think Yes, version you more of just processes, Raven that can SMR. a flexible of a

then methane into hydrogen. steam flared SMR, takes traditional and reforming So, methane process it's

Jed Dorsheimer

that. jogged in just another on question you Sorry,

be carbon to grey going exhaust to be considered that that or at that you're is so will sequester Craig, hydrogen? blue, capturing So, considered the the

Craig Knight

If to treatment that and all be of a it's was attached green it. pipe, it it pipe just certified it's and got it's grey was RNG, obviously using being hydrogen. out that be use off don't be process, But you that's If would a great. different wasn't gas gas of would great. rating it I then use just flared, If or cetera, gas capture When got RNG, certified et natural natural a on would otherwise right. a, directly using to that believe as a it it considered it's carbon got it's got gas,

Jed Dorsheimer

So, is the carbon? it you're green, if emitting

Craig Knight

No, if it's…

Pat Griffin

RNG. COX. Yes, worse for also methane, like environment the methane And it's is it's so, rate it than XX times

positive So, in instead there's your net process, if economics of you comes while emit RNG that COX, some letting the out capture that's carbon are and…

Jed Dorsheimer

yes. accounting, Carbon

Pat Griffin

scenario, as well, in that with on a obviously, bunch whole a large to we're waste doing is Raven we're you while Yes, accounting the negative hydrogen projects carbon this score. of intensity very get

than be would more with would emitted actually be this solar opinion electrolysis, offsetting our from green you're that in So, doing here. because landfills methane

and atmosphere. the carbon, less you're you're methane putting the it's up environment, So, but into not cleaning less,

Craig Knight

you're familiar change Not CHX; fracking getting with from to I'm from. RNG, or is be it's going not carbon though perspective whether guys. it whether structure mean, molecular going which to you're I very the a of

Pat Griffin

accounting, Carbon carbon yes, accounting.

Craig Knight

And atomic wondering seeing bond, hybrid just not the is of and using CHX, you're an carbon, that the you're some capture But green, a Yes, being getting capturing so considered some be kind type criticality so that's you're if if just when SMR break or with blue SMR green. I'm emitted. you if capturing if mechanism. we're process, could potentially or there's this how of associated then not

Pat Griffin

just we sees sort understand process. green have So, as how to by hour this two that I adjudicate we how best CARB think we'll take in place CARB could process will think because offline, about something say one the we ones debate And we is this. the go very the carbon thing but is, And a that the about. to probably when methodology, of underscoring negative the they're

Jed Dorsheimer

it, guys. I follow-up is on offline. It to it take I I'll something appreciate that, want thanks.

Pat Griffin

sure. Yes,

Craig Knight

Jed. Thanks,

Operator

question D.A. And of the Davidson. with coming line is our next Mike Shlisky from

line Your is open.

Mike Shlisky

guys. morning, good Hey,

a get do tipping questions, I just your Hyzon Before the want on be will to comment able of follow hydrogen, waste know that to those? to on get about come to my know fees piece you Raven up more into

Craig Knight

other if will economics, in anyone be amount so share we our partners proportionate so look different yes, in who every is, answer our The slightly you at share hub be that hub, be the could the systems, these Itochu, are. of depending Raven, Chevron, will in else. the Raven and economics of could ownership systems. But could be in it It it will someone Raven for percentage the the in Raven, we share our in all

other Services first knows waste getting a tipping a not expects or fee. tipping any fee, The management is but one Richmond Raven in that Republic or dump

very on first So, negotiated something that's was the one. just that

Mike Shlisky

it. got Okay,

for be resolved up any it's that whether be during Now by on lowered go XXXX, in are or December, if say chain I able to my XXXX just tomorrow at I to question amount had should issues point to XXXX? your you've outlook made that supply the earlier, some

Mark Gordon

me let one, take it's So, okay, Craig. that

that our of we're and having delivering because chain grow quickly going have, to you we look part When of sort going be it's sales, backlog, grow to the chain. because why the not supply continue what's to at of answer reason the is delivering delivering of could the grow to I also will growing supply mean So, backlog we is because unequivocally we're what as just issues yes. it's because

are put no this year absolutely being following and met in there's aren't So, issue being sales into the sales year. that

and pieces and said global excitement all of matter no since And way, on to that equipment definite working us frankly, possible. beginning to and the sales. suppliers the with as as issue And have quick of in as side. consistently we've us us this get our up a supply working so, the we logistics various fast chain, that's the there's sales momentum is acceleration And with

Mike Shlisky

you another And of about thank that. ask the right, versions All of to for performance some wanted was the current question I product. track

version are like today. it that get as trucks of will point in include customers what to does those own and look at from get the today? testing end are running from whatever performance Horizon, or be and handbuilt that going Mexico up and be running, also, Hyzon those different soon of how full they up you today, is can you is this what's trucks the that dispatch production as is of than So, and system the onward And year Bolingbrook it

Craig Knight

I'll take that.

designs. by fuel it cells Horizon customers in-house same in be we in fuel Hyzon trucks be So, fuel Mike, whether in And currently power are the the Europe put not fuel to the cell and made that the made won't are and the was be that whether it's Those into fuel for are is slightly fuel to are being the as for steel trucks trucks it in very, example. China, same And cells different. design higher Hyzon that cells delivery for and the going by of manner, the applications, drastically cells the Australia or for similar. production, updated the built into the same the noticeably power in higher different requirements, was but with Hyzon purchased a itself cell very by it's U.S.

Mike Shlisky

difference Okay, their will and on only so that's the of then ability be just to value, capture all. to clarify margins your more your

Craig Knight

a production instead customer of price. cost get of we Yes, price

Mike Shlisky

guys. Got it. so there it much. I'll Thanks leave

Craig Knight

Mike. Thanks,

Mark Gordon

more are questions? Operator, there any

Operator

sir. Yes,

next line Fox is Advisors. of from coming Our Fox the Steven question from

is line Your open.

Steven Fox

to two try morning. questions to good I'll Hi, stick here. standard the

hydrogen would secondly, you bit hydrogenic your I'm front, that's corporate of from sets a either fistfight you say emphasize have had a XX made controlling of like you're or versus your the of chain then the destiny the why progress a better days day? the in little opinion not Craig seeing changed any on describe done beginning of you public just terms for current of terms government ago, own curious, good benefits on all, as to or to leaders because government especially February every of lot now, Mark, Ukraine or given supply Are seeing with as sort it war? much events. in conversations anything still And anything much. the First you in secular arguments like of Thanks.

Craig Knight

So, thanks, Steven.

to factors. we our we as order numbers call, around out So, that we've fairly in QX to the mentioned typically be of I delivery things end even we're I'll build Europe lead chain vehicles to Naturally, aggressive that six on had I'm prior to approaching many touch year. or a nine the put to could middle plus, in more moved than as to of as able delivery as get able enough, year. unfortunately, and chassis even quickly taken many and vehicle because lead schedule, unknown lot normally those times are and say on happy went components months supply the of a But this, are wasn't five things times we and parts of week could XXXX last the months

a whether actions we definitely I lot took in the lot we think more not don't is better in this days, XX more last last days. took XX the a looking or So,

in, bit actions for to us it, I kind that Mark of the the a the and a coming before, days, but customer better up been we catch at looking it's for faster lot in in simply XXXX lot the in the vehicles pretty the that than like, tough. QX, supply is buy would but think still a the of are a the would at with we much XXX for inventory as what chain last than but we of quite customers ability can't like, to are endured QX, get at prior out Europe, we orders deliveries challenge example, XX that, took have appetites the to much to rate the of in a rate we indicated growing little

they've us. a been QX, in making of And better for while to look and trucks, lot a say customers will Europe I'd So, forward we happy, frankly. QX for because much much, be waiting

it's anymore, view every hours important hydrogen that operate wish view, not It's the of well with not them important turn just it's comment interactions burgeoning the sectors, day, just vehicles. sectoral you the of government vehicles so accepted as just corporations on amongst customers a Now, hydrogen hydrogen of and in heavy going some hydrogen. agencies be to benefits, if some to I'll the mantra about for questions and government solution these frankly heavy about makers, those I'll you call become around on it Hyzon's is or a a is mind, our as that interest now Mark but and the don't reflect policy in our agencies, over some many for make generally.

And for want have higher unlocking that thesis these do. is Do months could comment we a now in going the good to XX high level emissions much at would to And we that we we extremely that fact, And abate we were months sectors, sauce that back confidence, the zero it hydrogen of feel thesis secret Mark? mobility so, a vision all, far laid more promoting of to when the the you than could confident level be on tailwind we what of that imagined hydrogen, that and fact shape. had prove out Hyzon hard would ago. definitely a have be to in XX very confidence has around ever of and

Mark Gordon

mean, reporting target set yesterday. seen Steven, produce I tons have hydrogen XXX,XXX Sure. to a I you XXX,XXX Reuters China green mean that that might is by to of XXXX.

energy there's economy, about they really read infrastructure. this of So, sort oil it his a whole it how but way energy. beyond of opinion, that mean, would of Plan sustainable, it And if Utah; point great Plan. or I its the massive obviously, But to to need that be to hydrogen, March And in garbage rolled to environment. a a everywhere. security it when new very a only I garbage produced course, need to Jamie revolution York the it end real issue ships New Wyoming City try electric, gas, you need and its Dimon on. would Plan, supply. mean, Marshall do would create the sort mean on I be morning And the I a so it's there's sort and forth, Singapore mean, energy know of a we my it issue. this out they're Rochester; was I the call, of and ships landfill move a up across waste America, comments, a ships we clean mean, Marshall Marshall I so the get of is Malaysia; be something our because the about that hydrogen, we source something independence, apply on was depends might it, upon of and and to battery massive think of all all mean garbage grid. I remarks we to didn't can for local would would dead talking hydrogen. I of to that focused

So, the get all create and time could independence. energy same at that to fixed

it's are get positive message if the to we and the my Russia the way this a at to for is you plan. that here or imported clean to up from you comments security to upon the as do going is needed, be be relying out energy Middle whether people garbage there's in same independent And can go this because well, going a purpose part a it's of to situation. we everyone, whole a XXX get if calling, of call the there So, many the and future time, have imported East, world we oil, do get have we from stop to supply to and imported see

Steven Fox

Thank comments. you. all Great, those appreciate I

Craig Knight

Steven. you, Thank

Operator

the Donovan is with And Securities. our next Colliers question Schafer from line coming of

is Your line open.

Donovan Schafer

guys, Hey, questions. my taking thanks for

sort sold of is this first X just period. on the -- backlog. how my through this just out these question from because this spread think this over curious, and year So, find vehicles I'm of unrecognized you the it's of like, portion just just seven your that reporting you for kind with year

the you you backlog? remainder in see contract the that or of of the you unrecognized the of Are got XX to of altogether? in non-binding, like leaving backlog I the counted So, non-binding out binding Is terms backlog binding how about value. is XX that million the million broke part binding, out backlog

Pat Griffin

Craig?

Craig Knight

question. fair a That's

Pat Griffin

presentation put your slide in actually that addresses a was morning out our in there's Xk that exactly. an comment this so Yes,

the a the that, plus backlog chart is we show So, the show in the bar not remaining then We of actually Craig that some and a backlog, beside backlog. in remaining bit incremental.

I $XX that million think it's --

Pat Griffin

I XX.X, think.

Craig Knight

it's Yes, XX.X. sure, Yes, right.

Pat Griffin

revenues, customer. uncollected question a it it's this obligation XX.X of because for and the fair is is payment a

So, it, do some but to quite fit doesn't expect receive definition. it it's we backlog --

So, we it separately. added

Donovan Schafer

I Oh, that like treatment.

operating to a it same out word, history. lack -- of are like, tied of just specific think five the And better what So, sort when gap it in accounts lines where public over history, they find there's of about or kind the thing for that sort whatever being think the Google operating or and one, I'm agreement about like maybe to I about and follow-up together, this thinking rental curious, accounting or of I because to two like the then being might or contract, you being almost talk nature GAAP, me provisions a spirit on of as spreading it to trying sort of the the other if we allowance line of of can can it like the a understand think can oversight thing thinking, the of years one like the just for of similar Standards for talk of doubtful something. spirit to type year-to-year debt, makes bad in Board the be you of kind the of it, that of

what's would what [multiple you just smallest -- in thing Google So, keywords the sort speakers] of of understanding terms

Pat Griffin

do So, specific in question. we can a

Craig Knight

[Multiple speakers]

Pat Griffin

just ahead, can Go I going we to well, say, was Craig. do…

Craig Knight

factor, auditors, money by saying, kind of go sure he main gets and main collectability make they're of was The of just treatment collectability, assessment power the enforcement that we the to collected. enough have our out don't

the one the in zero largest it's of stop emission anytime end-user or we services using steel soon. before think trucks vehicle of the and is that companies world Now the highly unlikely

an both time as that I that considered don't add we a the the sorry, same of has accounting service more the treatment to for because think it's anything. there's the operating vehicles, from the Mark would question become to want answer you find we clearer. company collectability So, And I'm business risk, tried involved intermediary history then collectability there standpoint, provision then but but in unacceptable risk, new

Mark Gordon

Well, to we're far add did She speak you with Craig. answering outlook their want, this the Officer. weeds so, and Chief just to I is good all you. I'll explain if now have you job our happy you can think in a that and Accounting

Donovan Schafer

I'll Okay, great. ask then, another And question.

Mark Gordon

short-term haven't doesn't at to the all us that feel affect the very need from to revenue doesn't by those you market It's say, just it's viability we it all recognize a And the of learn we I deployments. right? where unattractive is recognized lot getting the Frankly, to from So, a I a a whole also say the us with And operations. shipped the trucks the attractiveness not also out the revenue extent of all Donovan, of validated data issue. just a it's which operations. vehicles short-term after. whether have to customers, really point. in we end deal. one, pain minor day, it's lot year or year good. the to that next huge which But it's make the want of a issue, So the of whole it's be doesn't get Donovan we vehicle tracks. And want the It's really It affect of the

Donovan Schafer

Sure.

understanding a something and great. as producer, Okay, to at Bakersfield because I stuff. but least logic, I'm well, and flare question, just process as me and flaring correct be to familiar whole in an is kind blue And methane that's then, the if kind oil I like someone the you're hydrogen, know, my green conceptually last at required -- And that the my -- taking don't green, just my those emissions. petroleum I'm a the not stab wrong, of specific but at be would I, level used engineer, as high seen versus gas so breakouts, with grey actually of

So, you're doesn't COX making what, like matter. no the matter it

Craig Knight

Yes.

Donovan Schafer

because just under combust back from being you're convert COX, the -- to happening absolutely methane for methane a aside, going couple else that Everything it's law carbon just no to to you're required dioxide. decades, well, probably benefit

Craig Knight

Correct.

Donovan Schafer

logic happening no of matter be, green the the it's well, So, would what.

that the creating tailpipe be otherwise would a with essentially and -- might vehicle like fossil you the --? going that it. well a capture vehicle having nobody carbon a a that capturing if being heat from that emissions, then vehicle off that's that would fuels And just into is it, have campfire waste you're powered, that as of is instead if it's around that ether, by powered displacing is and be logic also So,

Mark Gordon

the So, that's that. logic for

Craig Knight

That's it.

what an did Donovan it's yes, And where it's the you the -- because it. and -- from, the exactly, of and hit So, feedstock output on It's what's is what accounting carbon the through consideration. it's as end-to-end well as it come process. process happens

is in why make forced looks at conversion that's assess because straight example, is score And to also take you from carbon So, the COX, you're hydrogen accounting dairy a it's has the mentioned of for just of worse what burn and you, really they carbon mandated when massive it's why CARB CHX carbon COX effect end-to-end the get abating you're intensity methane. right, negative much lot CHX been countries it intensity. ozone you to reason of for the because a that it. when waste than years absolutely And so they're many depletion the

you're score. get abating CI hugely So, if a you negative CHX

for natural if even be you're CI but benefit. also actually COX a if a If then carbon gas, a will from it's green renewable methane then negative fuel you're displacing the was And negative getting without if abating not being blue CI just it capturing released source. you're that's example,

Sorry, Mark.

Donovan Schafer

Okay, thank you.

Mark Gordon

from to there. I environment to with would gas Yes, it's score the no I a negative methane what, up for mean, hydrogen be and produced the was and same say same the waste matter just going the going into flared CI landfill. logic

because help hydrogen, And a so, type zero. garbage solar scores. color than to with wind would what we argue negative dealing color score need a or really this that CARB green cases close CARB that hydrogen. to with is in electrolysis score to now describe we're using negative the some And for we of intensity But very scores, of is like is is carbon more this

Donovan Schafer

All right, thank you, guys.

Craig Knight

Thanks, Donovan.

Operator

question, last coming our Noel from of line Parks from And the Tuohy Brothers.

Your line open. is

Noel Parks

good Hi, morning.

Craig Knight

you? are how Noel, Hey,

Noel Parks

thanks. Good,

noticed seems a far was year projection. things, earlier the projections track was expenses, R&D below it your the is pretty you at I you talked gone Just pretty of maybe projections original just about the just that noticed -- far that couple for burn with looking your original that your - below essentially cash on that was five-year I last end had XXXX. run through rate And

expense where So, little just instance? XXXX, if see just you where as that that ramp on back maybe we insight looking for and might up it's going the year so, more or on to -- a if for and this forward, what cut line whether --

Craig Knight

Sure.

generally, looking buckets things XXXX spend slow it's been years. on we provided forward of very what expenses to on procure major think work, in I because as to several of had were lab been lower have for the an CapEx our And side et and cetera. equipment do outlook R&D, So, over like kind R&D,

more in content involved through more we and go the spending type the validation and of going where Hyzon R&D of outlook a on the work. spending vehicle little with developments. one the had assemblies be would the to we that vehicles, validate et R&D. capital processes much what the expanding have So, But been, in doing R&D/engineering, to fairly fact, we are And from meant cetera, simply collectability we than expect slower two these even But with cash expect end from of we it honest. preferred, to of trucks that slightly designs we parts collection also consistent given some be some cash a investing probably revenue the in and more more on road front orders, more we cash low-volume years, a we on And year the ended R&D and healthy to we're of that are expensive continue validate do to or coming recognition some order, cetera. et in do equipment because position

to invest foundation a to of keep right XX-year do need now, to is lots everything around do the five laying investing, be countries I is trying which to with So, to expect very to hydrogen lots that that's we we which but are have in full of for outlook going Frankly, consistent a world. going wildly trucks we this of base.

also vehicles maximize but a are the have invest is realize higher vehicles the capabilities. have for We we more long-term we and so that deploy which more Hyzon have to margins business the customers. which in stable, and we the sustainable core good dependable, service to predictable, both our characteristics And reliable, and in content

invest So, And frankly. started; we slow is yeah, to in been will continue get purchases equipment it slow R&D. fairly little so heavily have given to especially a

Noel Parks

did a Great, production green did successfully -- thanks. you earlier hydrogen their you that And who believe Europe, and customer, then have mention started in I

Craig Knight

yes. hydrogen, Green

Noel Parks

delivery way. then the be on is And going to

more they own? know, other wondering So, and in see as happen I'm might customers? if their on if of what were to one study you or just they -- in is are them if something at did significant a earlier potential And maybe you as had incentives adopter, sort that sort you for we their or if case a that just early-ish achieving thing look of an useful whether there sense

Craig Knight

Noel. that's question, good a Yes,

support. buy of becoming you it. operation," coaches, element now in of substantial filling projects work months, kind and in are doing might a They their variable anyone their of our in had green underappreciated lot have had -- made and and when in and when they'll your subsidy green kind of hydrogen two if remembered that of So, just that which commercial is validation removing aggressively also purchase then and companies were materials, are effect, a Australia, kind original commissioned got were just I of the early doing And very type types now seen Australia, kind buckets. we And investor of this as company commitment a the adopters in you in get characterize Fortescue, the right. built in are in committed investing customer are own electrolyses those of from in renewable that's high as early -- has because get run customers of of similar think green more as their something electricity. Europe such cost to put hydrogen companies, such you there's some renewable It's It's without any that they of Fortescue where be off to you hydrogen coaches and not where to be their trucks is don't diesel make they'll build something it scale kind -- available about saw all station get hydrogen, this buyers then they customers of scaling vehicles, which hydrogen, electrolysis, displace capabilities, they these in make more you know behind-the-fence it. diesel, that independent these in these China, we trucks Australia and "Behind-the-fence or access of to all as cost And like study, a diesel whatever. And chemical of station. And lot committed Hyzon case Europe, or of as more type Europe this one element. can that these that's volatile the do rest they a And from customer their my in of able those couple they waste from we then weapon a whereas hydrogen a the a plant you strategically. hydrogen my world benefit of bit fantastic customers that and got typical public more on a of own to another for because green and European you operation, might customer the to a trucks you hydrogen see say, tell

improving You adoption. marginal of cost get this

initiatives. that, they for because scale will for about support example it been about a we little a will customer, that of talk it detail to progressive behind-the-fence is their European they've initiative. are later. project these But talking good to believe And So, believe, deployments. yet I type because not time, simply in receive support, them a in And vehicle of want we result, and pursued them they so example, government over ultimately

revealed. to have an scaling for yet that I they But vehicle green hydrogen that's will So, that strong around I green inevitable believe, this be that's there once economics, support prove they development it's hydrogen. believe available, still adoption that be,

Noel Parks

Great, thanks a lot.

Mark Gordon

do question? we another have Operator,

Craig Knight

Thanks, be last to question. was going Noel. That

I pretty much of think we're time. out

Operator

no questions. I'm further showing

Mark Gordon

much. you thank Great, very

Craig Knight

pretty I think so. anyway, much we're out time of

Mark Gordon

look next at we'll And quarterly leave it yes. on to that. Yes, forward much. We call. you very you Thank the Operator. with speaking Thanks,

Craig Knight

Thanks, everyone.

Operator

conclude conference gentlemen, and our Ladies does for that participation. for your Thank today. you

disconnect. You may now

Hyzon Motors (HYZN) 23 Mar 222021 Q4 Earnings call transcript