Earnings call transcript Q2 2023

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Benjamin Schwarz

Hello, everyone, and welcome to Fusion Fuel Green's Second Quarter 2023 Investor Update. My name is Benjamin Schwarz, and I'm Head of Investor Relations at Fusion Fuel.

So, we'll begin with the safe harbor statement. I'd like to remind everyone that this call may contain forward-looking statements, including, but not limited to, the company's expectations or predictions of financial and business performance, which are based on numerous assumptions about sales, margins, competitive factors, industry performance, or other factors, which cannot be predicted.

Forward-looking statements are inherently subject to risks, uncertainties, and assumptions, and they are not guarantees of performance.

our read discussion slide may of business may to presentation the affect you incorrect. or a prove for those cause encourage the in disclaimer investor our I to assumptions risks that The company expressly obligation a forward-looking update, required to otherwise, result any law. obligation of or revise future whether by disclaims except events, otherwise or any alter, statements under is no and as new information, as

Thank you for us joining today.

our agenda once I'll So, run quickly through again.

with off glance. discussion things before So, overview will of present for a kick I'll with highlights, of updates, at Fuel an and priorities project, the The then a Fusion milestones wrapping up commercial team remainder management our financials of second quarter results, XXXX.

floor time. the Q&A the for We facilitated will remaining open with then up

our can the directly webcast any platform the questions be can As quarterly next your at you me mailbox submit calls, questions the either at hour, chat in in Investor entered previous Relations or at box ir@fusion-fuel.eu. the point during in to

Okay.

always, as our brief in refresher positioning our sector. with let's green a Fuel, hydrogen and proposition, the value on Fusion begin So,

So, cost-effective through hydrogen delivery is and the more of our transition accessible development to make the mission solutions. clean energy

sources in need to hydrogen the positions the bottleneck electrolyzer, advantage, customized patented miniaturized multiple production the our everything and heart that scalable hydrogen critical us hydrogen, including of competitive do is create Our PEM high of a today. and distribution building production, in for Its approach block the a modular distributed of cost market fit-for-purpose infrastructure, HEVO, costly differentiator architecture unlocks mitigating solutions true that at simplified we throughput products. of all is a

result foundational with geographies case. as have core that projects also new Europe strengthen been and making economics America, Northern a priority those pipeline derisk introduction a built -- Southern tied and as of of a in in funding the We're result many unlocked to HEVO-Chain Europe, North that grant of the promising robust solution. inroads We've of the in too unlocked significant investment markets our projects near-term our actionable market,

and business across the us We value model synergistic that a have differentiated chain. positions

to addition for we originate third-party that green value hydrogen also diverse develop and solution electrolyzer with customers, our to projects In monetizing proprietary selling avenues creation.

we of finally, pipeline -- as project and significant for are market per with we're poised facility where XXXX. electrolysis And the an production of the by in a world-class the production end end long-term X.X annum growth gigawatt Portugal, a targeting matures extensive ramp by

it to quarter over So, to Jones, highlights Gavin XXXX. from Fusion CFO I'll with now pass Fuel, second of that, share some of the

Gavin Jones

all Ben. who you Good afternoon joined investor to our call. or second you, Thank of quarter morning have update

second to be scientific plant quarter, Spanish Council, National supply a dedicated called institution government Zaragoza, were hydrogen public innovation, we and CSIC, agency CSIC. research research €X.X This contract based Spanish During green development. XXX-kilowatt Research million is to to awarded the solar technological known in a a promoting also project by Spain. will as the a

to addition report our further our issuing cell also published to in customers. We inaugural ESG technology invoices

with in will of XXXX. Ventures and cover the quarter, detail a with contract partnerships Frederico offtake work in an signed reach in on Hydrogen in we a green strategic long-term group; a and Portugal investment by these continue to with tests the agreement to a end industrial signed version with plant; Southern more HEVO-Chain, Ventures decision end Italian million Italy; cover of Duferco project to non-containerized €XX final finalized later presentation. partnership the Hydrogen second hydrogen market, After a X-megawatt acceptance strategic the Exolum our hydrogen Duferco with the Spanish at the on starting

discussed values the now second the that to for in otherwise. We stated on for results financial Please unless move euros, will all quarter. note

We or sets €X invoices accounting always of but do million recognized the the equate client not during no out We during quarter, total related as quarter. inflows standard the a second customers of performance to invoiced revenue that revenue a performance obligations before been criteria met customer time contracts The that satisfied. until invoiced have must have been these identified we that satisfied. be deferred such within be items will obligations have the number recognition

to Exolum key project, our provisional the acceptance. is For pertaining milestone revenue recognition

be was As revenues associated will third this during booked. quarter, the achieved the

these an significant and we of to continue utilizing we €X.X quarter. The expected As projects HEVO-Chain, use be these Any version. from we not do impairment the expect and value that portion full of transition second inventory a to dispose in received we containerized monetary our against as on both to HEVO-Solar inflows components identified to for impairment amount recycle non-containerized the charge are credited components was charge we recorded periods. future million during the and/or the

buyers off the source for it impairment place, materials. This of to components, sales. have to recorded part these prudent write as continue has value full of We we of we consider been agreements but cost such until in

cost operating quarter. for Our consecutive base second the decreased

was costs somewhat by lower increased million headcount legal compared to when and recorded a to we charges. reduction the first due reductions to and travel, depreciation offset non-recurring administrative saw consulting coupled in fees, to This further a expense that QX, the with quarter. Excluding €X.X but was our personnel-related

booked offset reduction loss by incentive Our €X.X quarterly was forfeiture second resulted equity our charge the options for reduced XXXX. XXXX of million, grants in number those forfeiture during for which is The of significant in plan which those instruments, quarter. profit expenses This booked €XXX,XXX between to split credit during a period. to and and the the by a related new during of equity relating of

of loss €X.X items. quarter €XX.X for to related pre-tax non-cash which amounted million the approximately The million, to

by the Moving equipment items. The and to plant property, balance increase sheet. to is two driven

new production this quarter The the the Benavente This million. first booking our the €X.X equipment that asset increased invoiced value of was relates for to facility. during of by

lease shown net an inventory impairment of million as during our land settled a €X.X recognition income invoices of received was increase trade the above; quarter. second charge continued during movements the the include recorded new issued in a from development and million quarter; we book was notable project The own reduction €X.X of our for The for is relates award. as balance that to Other as of the deferred customers mentioned pipeline. to as inflows we more VAT increase our and further Benavente, an equipment grant to to C-X

the per quarter. ordinary sold Over Next average raised on the August These sales shares at shares slide, were please. by ordinary trading $X.XX cumulatively XXX,XXX in we ATM nine July an the selling days price during No second X, market. on and through $XXX,XXX when share. ordinary shares was of be opportunistic and made we last an that price we a of per for in basis the that at appropriate our volumes at related $X.XX active sale The to made considered us were were level share.

with since as being without $X.XX ATM. active the fallen to has as us low stock Our

I to think appropriate most this is discuss the position. capital our moment

capital our to work revenues As extend we sheet have discussed which meaningfully our previously, cash enable and we will us runway, it's to self-sufficiency. a we as that flow strengthen generate paramount towards balance raise importance to

the still best meeting the to is Our main protects we needs company. objective select shareholder the of while financing that interests option ensure

focus method capital company, cap efficient owned the of on small of cap as our proven capital most strengthening companies. position be privately a larger ATM to the tended transactions late As market or has to have

regarding solutions discussions meet objective. above in capital both with are existing and prospective financing to the providers We

While details update financing our regarding relate solutions, we to to discussions as we have to market no firm you expect further these the progress.

for through of update, issued XXXX QX expected operating XXXX guidance for we XXXX As investor our results. part

projects, both Our XXXX revenue to recognized reflected guidance of be which our of were expected forecasted completed XXXX. to during be amounts on own two

For completed criteria before that the to each the awarded projects were question, in was two funding end significant of projects the both with key being grant XXXX.

and completed for to projects not delays licensing it date, permitting the timeframe. be will within Given be the these to experienced possible allocated

guidance. of consider a guidance result projects. the our sold revised providing excluded the cost note are and we these we a important be foregoing, to reduction. for of that revised to we a It's two delay than have rather goods XXXX, related for this revenues As In

projects advanced two we For these have shifted other our question, projects identified in and had both stages. investors investors portfolio to in are the in for now that

HEVO-Solar permitting plots in process. process. to for more land requires requiring complex from a allow HEVO-Chain shift larger will addition licensing licensing HEVO-Solar The and streamlined a more to

difficulties Moving some of during our XXXX reduce the date. should encountered to own of projects some to HEVO-Chain

We this revising technology to €X sale million initial guidance. of not expect our and revenues remain are unchanged

in milestones to technology of lag consistent typical back-ended to the the nature time, to will out We as this but expect technology industry. our the where revenue of customers XX set sale our aims of due behind contract. to recognition be throughout some invoicing which is Slide of revenues to our ahead key plan, over be presentation agreements, opposed will a

for goods XXXX reflect Our been charges during updated has second to revenues and impairment the sold quarter. recorded cost of lower the

production XXXX, has pushed for lower a production a megawatts of in estimated to capacity line have reduction The the due deliveries. guidance. second XXXX on slower-than-expected initial been the investment client to We XX

revised issue part guidance QX as XXXX for a We our expect update. to of investor

pass our will of the who to over you presentation. now guide will you I Frederico, through rest CEO, the

Frederico Figueira de Chaves

joining for Gavin, you thank you, and today. us Thank all

has to energy with hydrogen Exolum. to the like work you station, of Iberia, ongoing and completed a acceptance this its solar phase, to from kind client. all developments throughout first that's delivered by from from in been its the has would sharing co-located, the the project, start I refueling been latest green The the year straight going testing project to

HEVO-Solar them at proud (ph). rate know In to addition, we're that higher within a HEVOs are [data the producing than sheet] their and the

has leading stage green proven the the CSIC. the is level and the taken also experience commissioning the Fuel deliver plant. substantial value only sales having deliver to of itself have currently the full as to Fuel construction, hydrogen future third of client, enter an to live solution Currently, only but proved to early to contracts. we're market, team, this that has in a as not design, of has able oversight In Fusion we negotiation the design, working a on Fusion and plants Iberia, having installation engineering This

show bring project, a This processes, oversaw of plants, in the a these Exolum to the Southern control pioneering the included every to throughout. project step, hard installation mentioned, of team software have now Fusion and of market. truly advantage which, The together the I bringing balance plant of of the civil strong the the We a installation we life. as of partners competitive incredibly development brief the The the knowledge Fuel several slide experience months and European are HEVO-Solar, plant. entire worked has commissioning construction,

several Portugal Morocco. and U.S. and and started key green we've secured we've primarily of mentioned projects in Spain, times, hydrogen strategic the development also the As substantial in sites but

owned Portugal on five projects and the Focusing key underway.

the secure €XX grants go-live, We continue with (ph), have required adding significant power forward projects, secured for this local already awaiting [IPCEI] These, million already are addition in decision it for these even project (ph) portfolio to to an project, their to the or them to for move is lines, the we it's [payments] for €XX where value hear addition agreements. create million on as connection permits continue not. elements value of This or to offtake we the the to submission, the company. and portfolio approved a enormous be in requested still whether Aveiro we

decision to not which a we continue but what final points, for receive the questions yet we timeline We know are clarification and answering, do is.

the are three of here negotiating investors. of to the infrastructure We projects listed currently sale

we secure SPVs, and SPVs. some as as already negotiation those successful value to stock these 'XX recognize revenue and able for of be the the of With the of XXXX, will of significant well those the projects orders with transfers

able million The develop given balance Exolum, €XX years represent that looking are Azambuja alone of the this I one only to plant, and done similar Fuel of each revenues as Sines Fusion to players in are something electrolyzer, have CSIC entire plant, to that and so potential but the in not for of only hydrogen the we're market. looking do we last including to the to deliver we projects

Our able to expectation projects year-end. these by negotiations be the is close on to

shape, take the in national considered we a also was to lot ever expected, longer take than longer than unfortunately, strategies. Projects time a long but hydrogen various

value several However, projects these the the the company. highlight the recent on existing large negotiations have in counterparts with for various our portfolio,

to with submissions team well potential for to of to our wouldn't a Spanish future that preparing enable way programs projects the four capacity as they this potential for engage Fuel. create us was in XX with in and do. revenues for being as our and in in Firstly, Fusion successful, the solutions latest new offtakers €XX these represent technology supplying busy backbone us simply sales secondly, around own for in electrolyzer three highly and June investors With engaged years, million integrator solutions megawatts allow July and projects during of hydrogen nearly the technology the rounds If for client and Portuguese in projects. mind,

these growing of importance since Hydrogen is announcement potential year. the earlier this The of Bank European creating projects only the

As project a are vain. cannot the successful recap, securing the listed from European work any not project the benefit seeking, the Hydrogen that in or forms grants receive of be to opportunities create these seeks if other grants. not are we Therefore, support here in to will Bank

a We European will Hydrogen by reality still the them Bank be looking to assuming make auction.

it requirements lot our able the be to team example, as had third-party landscape. difficult HEVO-Chain to they and This ever-changing of secure of the of sales processes different project in substantial June progression how projects, year, substantially this introductions fast the and longer them pace The we an proved unique regulatory for permitting focused deliveries. Aveiro no to that hydrogen have coinciding have product effort in is would build is pursuing meant new offering, the our required Portugal, a clients electrolyzer and just a In today. are more for changed things with for give as process. licensing land To the like changing. a began be a of This a HEVO-Solar

permitting implement as much sites and examples process HEVO-Solar those, will projects, We the longer. are CSIC on but the things is certain will still industrial in increasingly Exolum becomes and be it harder these of

with The permitting was is with been and easier We've from (ph) the parties our developed this own system for is substantially licensing HEVO-Chain its in receiving the efficiency used projects PEM proving significant core solution third technology advance projects solution our processes. gradually. today offering to industry-leading traction [relatively] to by And HEVO-Chain MRO. the transferring

to requiring around our beyond for be alone. team ability is This HEVO-Chain, that specifications often has go advantage. Since scope these the supply design the projects submissions of projects in proving is full hydrogen this unique the already full transition These implemented offers are sales experience to our this complex, to project solution. a electrolyzer for submitted our XX new competitive getting well where design with

seen and believe come. significant differentiator projects news have designing years is We we're being recent we inside responsible for experience troubles a hydrogen to are project, executing, that industry the projects that of a live and in in

continent the stages, The summer A we first of European process technology for has the not and Northern in Europe to technology us. northern moving something the establishing third are months a expect therefore, and of sales the several something hearing now a of space. noted in although to in. coming possible have series the final several this that before us potential the Europe, the solution, is as this for in break which in in on we HEVO-Chain our hydrogen, be parties been close. want And certainly Southern to decisions coming priority in participate last the offering offers is strategic a to for we update it's which the green project that projects countries has in was highlight reality The for enormous faster

year-end, the which As conclude and in are inventory. significant the will product projects consume firm to of is revenues noted well will significant in something cash look given our infrastructure engaged [confirmed] sale they before as that slide, release in the we (ph) our currently actively amount of that to own investors generate flows substantial for previous as

it our received our some questions competitors. as on several We've of to model differs business

electrolyzer process, green and value green with starting chain being of the the balance the and out plant, supply to hydrogen the the engineering, leading the of procurement, delivered. power plant finally laid we've construction system, a Here, produced hydrogen

deliver Fuel For entire is Exolum, as for developing able value full team well rare be and Aveiro this. as our experience to and a Fusion CSIC, for the to responsible chain, within

electrolyzer in focus on cases, and their installation primary Going the forward, delivery system our of commission. the many and,

projects look developing look services projects have are to and local We that the These limited instead Iberia. selected balance requirements, but of a relative thorough with in and to -- regulatory and plant we'll look other will for markets, the for require engineering understanding dimensioning of for mostly something we expertise. to partner we will partners also of services provide procurement here,

is Partnerships Energia, have we are a have a with -- a strategy partnered key enabler promote This the and in with are project proposals effect -- Duferco limited on before suites we partnered of to Italian our size. form. we together with a team on and multiplier a strategic example technology for to Fusion working looking Italy, Italians on Fuel are two company commercial plants In relationships market. an to create partnership to the relationship the

operations beyond While in we knowledge a possible technology accelerate presence our and what our to alone. thereby be substantial local bring partner with leading market and the would

HEVO-Chain The be project is a very partnership containerized with electrolyzer to deliver. This to the C a refinery. solution, with during system local we'll HEVO-Chain Duferco taking something decarbonize excited of XXXX version that kicks-off first we're Series X-megawatt

keep as green our still these take in for early us they to projects our ensuring important These to their shape, a low accelerate covering share further we we help on of partnership can't and with and into them while markets The Fuel its have but on as Fusion large ongoing, now, Fusion still entity are go also are cost beyond Fuel's some stage, possible. for require new developments There working that projects funding are soon can. these is -- demonstrated hydrogen such North project completion. included. as discussions we're as in discussions but growth renewable partnerships investments Portugal. We're exciting Europe America for we'll India, already specialist as working We with begun world potential

some to able the first any hydrogen green purchase in of stage still green agreements project is early critical secure of a part been hydrogen offtake Southern Europe. in its making Green hydrogen have We is and viable.

Our experience ahead [gas spending use, the establishing mobility] markets. in for contracts these ourselves curve when puts (ph) us of negotiating industrial and cases in

portfolio the hydrogen unlevered critical to established projects portfolio. purchase finalize in of our have three larger experience framing these projects MoUs that the an these form supply agreements, for In attractive addition agreement and secured also we've a our in to investors. green The we hydrogen foundation the several their for for first the ensuring IRR in contracts, negotiation

Before I'd is me spend the about into market, for few a special dig is the presentation, like offering moments so with important bear last HEVO-Chain of itself. reaching the really to the to the It a slide moment. PEM evolution in what a truly HEVO and

Firstly, efficiency This kilo system XX% hours efficiency efficiency to XX.X at an XX.X kilowatt in of kilo, per market-leading compares a a have we of PEM level and per stack advantage. hour hours around most kilowatt kilo. XX-kilowatt peers roughly per the

system minimizes as the modularity also handled any the disruption shut in other any Our as most kilowatts. for is small during maintenance system as high-scale seen in requiring plant the to an but of electrolyzer dimensions been modular market, scalable down and of XX [when] processes the risk hydrogen able entire components solution during systems. has plants, one building in This (ph) of and and reducing a be issues, allows to

This point the industry-leading see precious here One chart past, detail through on an utilization. where have the we've highlight, you is the into to right. in metal we gone this

around in X,XXX using metals platinum the of of targeted new than Energy group are used has about targeted completed the PEM to it technology value well HEVO Critically, highlights our U.S. the the Roadmap the Roadmap. of both more how and advantages XXXX platinum of a below differentiating the of Clean currently Hydrogen lot We established by metals some truly market. competitors. HEVOs is hours in EU This only and usage group reached we've the Department more and one-quarter

system for of where always slide briefly, set stand keep green for of as out to it start of amount hydrogen we at versus The to a in emission upon case, Most oxygen, add of the delivery the is this what the HEVO-Chain as touch for the producing the process this carbon In we of the at to mode. their highlight I'll previous client released have capabilities. therefore, used end we're in in the capture for releases kilo process client but to oxygen, in the system note through industrial time, oxygen green of that I'd creation. wanted look covered that capture able X to its oxygen were the better year. X the no do we a included oxygen however, full process, has like now we've been of commercial time year. first points first and electrolysis on And to slides, yet, that

We more be and expect in this forward. proposals included to more client going

strategic highlighted we an how on priorities, executing against update and our we quarter, this. we want are provide Last now to

HEVO-Chain has As previous noted, in resulted the This few going we on sales offering. last tech push out all-effort months our than two have started years. with the in sales offers more

U.S., Importantly, this in and North first projects the Europe proposals includes of industry. in hydrogen green markets for the key both the

in And it's do we're position that I've is position take capital at everyone advanced sales a capital progress this given strengthen that strengthen in significant also a having very to strengthening coming capital distressed we capital and for limited before put mentioned to we and priority expect to should time, position. Gavin business with provide The project our tech in discussions detail valuation. months, to to team. can the us the in balance the as make noted our what further without executive providers and and We where steps us a are sheet to in which our sales, such clear

commercially advanced the well projects today XX is in up been only. already. XX ready, we've the delivering operation and is PEM to for largest note megawatts megawatts and electrolyzer noted, X As to that important offers and offering HEVO-Chain It's

is everyone path the something So is going to in pursuing. large that this still industry

of we on the scaling future. the gradually delivery projects For and up how reach larger us, delivering is to smaller in intend projects

of identified areas appropriate grows evolves, company also review the and the allocated where in to the goals. certain are we some that stop, is that resources our and efforts us ensure of the need size new structure pursuing plan possible. for strategic importantly, can industry our the self-fund This the manner that we've our and, refocusing the As we opportunities cost have in coming The process have of will that identified. to is and we the months, won't and lead some reductions most that

earlier, Lastly, help plan coverage X-megawatt regarding with Italian to strategic to only multiplier on in Europe as working beyond. pursuing Duferco and first are order, partnerships, the and a commercial partnerships not over containerized the weeks. thrilled highlighted now, to able say bringing the market. our we're working Energia, be We're a but bring hope other us more also for importantly grow but to We effect we're very of to some and announce our can't items coming discussions business be in advanced both of

Q&A. open I'll for session some join Thank me Gavin we now Ben you. and as ask the to

Benjamin Schwarz

questions Investor in box. Frederico. quick at platform. some questions, or I've Thanks, can if webcast in have them you you e-mail chat them as the additional reminder, the ir@fusion-fuel.eu to box chat in the gotten as enter Relations the mailbox into A the Great. well send do

Okay.

for that project? grant Chris €X.X that of questions you Pioneers There's from on we'll confirms announcing capital investment plan How remaining Tsung million of So, in million questions the fund at a begin do the to Research. Webber some HX handful funding. €X.X project

Frederico Figueira de Chaves

Ben. Thank you, Great.

front for one owners project. in investors of has looking note, we that for own this that that is actually, the We're and discussions I The are are and for slide to infrastructure investor we discussions funding these partners These is with HEVO-Chain. So projects Portugal in Toledo I Perte been that projects. right? C-XX similar We're same for with to changed the project in our project a project also -- the Toledo Toledo To to investor advanced call for renewable and overview. II, already projects. note, to project

agreement, hydrogen item announced as critical already together, was secured it purchase is project. a hold So, these Most for HEVO-Chain the have well. something that projects we offering and critically,

discussions I So, hope answer now investor. the with stage we in are question. next the that the

Benjamin Schwarz

Yes, right. that's

it does. think I

are we As And as that the not, still projects remaining grant a in viability four for part should there follow-up how that, call. Are preselected of contention? the HX of we three funding announced those Pioneers the think about to projects if first projects?

Frederico Figueira de Chaves

Ben. Thanks, Sure.

the one has go, four, one and we So and been purchase. to new two the was awarded, resubmitted of let

So that is present. actual resubmitted at have that the one II Toledo we is

Benjamin Schwarz

Great. €XX Thanks. or million monetize the grants, to there? is only that the What or €XX what decreased pathway the Also, as What can invoiced to million grants the approved been quarter-on-quarter from €X.X clarity date? given has grants -- to happened some approved million. so you to secured roughly provide

Frederico Figueira de Chaves

the to related In approved. Sure. grants, I'll So, there not as the problem. the tackle the are this to XX to, complete side. suffer million in these implemented though the were reduction government that delays, Gavin was only we a right? Not programs, single government reverse projects of due The even order. licensing that -- given €XX been were this have ones hydrogen delays mentioned, on two projects we not we could one

that effectively, But in was only grant acknowledging exactly year, we the expire project. already In matches that us formally value will reflecting end in were be we unique. the decrease reality, we the at the pursuing numbers. not the So, grant the but will not of

of revenues. recognizing -- So, sorry, the yes, those the

So, of grants the project. to the support effectively, the CapEx expense

to grant. we ones who they of the will the try most projects the be So, to benefit will as investors, sell

the our that SPV. transfer of certain the of a we sell funding the current taking investors. for that hope decrease -- So see to that But amount in to a us we SPVs to own of our is products there holders these the as the number we receipt are books time, grant there allows are grant, to as some do SPV. This in third-party grant

truly the moving sales we'll third of will also so to the benefit see from parties, them, we And with grants the contract related.

Benjamin Schwarz

Great. Thanks, Frederico. Final Chris. question for

million? On can €XX decreases revenue -- but revenue provide expected net guidance, income million, as some by to how the clarity €X by only revised you decreases decreases

Gavin Jones

take one, can Ben. that I Sure.

So, in again, and important to technology terms our the note project sales. revised split sales that between own of guidance, development just

So, we sales be best for requires us, of related and away. investor might realize who projects been fully has following update, accounting the of you when those you recently the XXXX, mentioned in our to loss standards fallen loss XX-F two provisions recorded which cost under will first contracts our sales contract you significant that filed making. remember technology most have the And to for reported that your for contracts QX onerous our those in as effectively book December those estimate I that

in So, revenue, hadn't the instance. how its statement, of be provision actually kind once cost been will we works significantly a those losses record first you recorded corresponding the and way will already as December be as record amount But and that revenue contract recognized, lower will you been loss if in been out in sales. the have of provision recorded income has recorded the booked that

So sorry, worthy response across. a the but bit of I've message hopefully, a got that, to

Benjamin Schwarz

that the couple we Kerouredan What the expect of are regarding next impairments perceived phaseout your product RBC. further of at as Gavin. part Thanks, simplification steps from of and transition? A Erwan strategy Should questions HEVO-Solar?

Frederico Figueira de Chaves

impairment and So you I'll Gavin, next the answer the take piece. steps

our we already moving So projects -- on HEVO-Chain for are along us, HEVO-Chain well moving been the solution. the We've we towards have offering.

It's requirement simplified simplification on to do of At product this just advantage which transferred, took the efforts no further there's the stage, mostly] more to [then us. getting projects offers that real us of strategy. solution. the (ph) focusing a sort So, our for HEVO-Chain licensing process

to pass I'll on impairment. you Gavin, the

Gavin Jones

Yes. Perfect.

done that. this that again, So, expect reflects inventory. taking forward. have booked that sure we the rigorous impairments. on feel we pretty any don't can't be in we use XXX% everything in know of What we number quarter have we won't that And a that correctly the review further But is we -- we we going we won't definitive items for

or them. As mentioned, those sell or looking I we're to recycle scrap

be inflows So hopefully, in future. there the will

have, But not we in still inventory as our We other Frederico is terms items projects of ongoing. that dead. HEVO-Solar have in mentioned,

within used be job our to and for will been this utilize done, If have utilize containerized inventory. at until And HEVO-Chain, many will that non-containerized, production pretty will have. and impaired. materials of reviewing the also the R&D becomes the we recognized for components And and -- in many, actually installing So, the more to next we're both continue a we able materials product. the done a had good and we've then HEVO-Chain be bit would have the that then market, process months on to wasn't we they be journey couple team we

not the hopefully, on far. done is based review the we've So so that answer

Benjamin Schwarz

favor of and you market the Southern Thanks, Europe? been strategy? Gavin. touch term the U.S. the Very on Can deprioritized Northern in Has U.S. in near good.

Frederico Figueira de Chaves

Thanks, Ben. not. No, absolutely

Canada U.S. the as North to in a the for -- certainly American markets, in there us. So is market throw well, priority

hydrogen both European noted opportunity I making for as is for markets the includes our from as American during well been benefit As The of IRA technology offers produced. in Any we've everyone a space. credit in the phenomenal Northern a speech, can hydrogen $X kilo markets. North project my -- tax that

focus. it's certainly a So,

discussions partnership in. the of one is this that fact, we are In engaged

forward with a priority it for look being So, just our to sharing North able to know all is to you that certainly us. in efforts But America. to related more we

home details we going partnerships. just our become How beyond announce plan for cover live and that around market ongoing answering as I will requests sort to forward we're it already in were believe flight, clearer inbound technology of projects to that the able

[vague] be coming will but able to be hope (ph), the communicate I in to weeks. more So,

Benjamin Schwarz

required questions reach steps to What Ventures? AGP] Great. We'll on Grant pivot Hydrogen the some are from now projects (ph). remaining FID [Jeffrey to with the with

Frederico Figueira de Chaves

Sure.

project with hydrogen and have Ventures, that a is -- we've grid, power power, production we we land. Hydrogen discussing been project we the already have the the So, the we have that them. one licensing of the with are the This

more around So, all moment, review the is the project, at contractual the their on and Ventures, so. project Hydrogen the grant this contracts due materials, diligence and the discussions doing with then

in of than project coming on these more now FID, review the So It's milestone. investor are really terms any of months. particular the

Benjamin Schwarz

Great.

by made the quarter materials sales on more have? standardization you what in reference Can you the second for benefit will that what Second efforts. that? in rigor standardization question concerns mean And and expand

Frederico Figueira de Chaves

Sure.

Of course.

the The can on. on HEVO When the that a needs be when land project tailored. one project, effectively, change by HEVO-Chain. topography completely requirements depends of to produced HEVO-Solar of and advantages So every you of The amount this you the the is -- local single HEVO-Solar hydrogen so of of do radiation do site.

So custom substantial full to project just [indiscernible] review a offer. an and custom single every doing proposal needed nearly offering, put out

the we're able HEVO-Chain, With to have offers. standard

allowed months land So, us offering. sorry, given XD to to standard able place -- can have that that designs it HEVO-Solar we of amount be offers -- ability to much a have has on. with from layouts in This to certainly to offer applied have XX-plus layouts, pretty letters, anywhere, standard effectively been couple This and building much heavy the blocks deliver requires the XD so units. more not standard of be possible would certain

standardization that to. referring we're is what So

Benjamin Schwarz

Thanks.

And Portugal audience. provide issues Moving commentary referenced challenges the the and now the to given What's some those HEVO-Solar can from questions permitting of additional the the during you some status quarter? in permitting on Spain?

Frederico Figueira de Chaves

Sure.

type the issues and has So the related Portugal through. project Spain requirements and again, of that on rules permitting and go in land hydrogen to each to

licensing-light example, So that a sort Simplex that regulation passed be of spread and was a requirements for year, of hydro licensing and number through approach. the last called projects to Portugal regulatory allowed

year, this process. position were the regulatory impossible pursuing reversed, system, that to lengthier actually the old need and been Simplex is back to of was that revert to that they've accelerated they that As process projects informed that

the that increases the say the the back original the reverted now the regulatory hits of significantly hurdles of requirements sort should and for very to change because -- licensing size HEVO-Solar should I amount that the It various it the they from project. say regulators So make goalposts projects. -- required of required of the hard particularly footprint licensing the type I

a project, on. one-hectare project you're doing when doing so So a XX-hectare it's when different very and you're

required other hit highest surprise, the in the size for is for with process sort were Portugal process Again, development in project regulatory for the changes. the would markets. applies any one HEVO-Solar year of this also markets, of it relatively meant given a the these to It's licensing but last changed game only by that, effectively or certainly that the all one hurdles. effectively immediately say -- decent was that So that Spain, caught and Morocco these us HEVO-Solar previous not to that implemented changed

what to and the physical effectively is electronics production we hydrogen So we electrolyzer. have very have should because separated proves very HEVO-Chain separation, in the transfer from we still actually This or very be terms high done the with well, of power production to very well a performing I efficiency, hour low the cost-effective say kilowatt kilo. manner exceptionally low per is a requirement the

Benjamin Schwarz

announced which you Frederico. Thanks, provide last Can an Gedisol was year? the update on project

Frederico Figueira de Chaves

licensing, project the Gedisol year, the that of be projects the in and those other to this The project to the to are by have that the expecting Gavin projects for portfolio. were were been These mentioned. change they specific, -- projects to those Sure. delays two deliver impacted investors HEVO-Solar we had as projects we were our

Benjamin Schwarz

Thanks. When position? clarity the capital company's should investors on some expect

Gavin Jones

various with think as I solutions. different So, regarding Frederico discussions counterparts in are financing various we mentioned,

been what that now, to me breakeven. build goal for to has But is appropriate to not us our detail hopefully it's So, bridge comments will but soon. flow I our cash finances my again, in previous always for on right through go

one, continue so move We price items. all recapitalization our on significant given of fully a financing available any to a depressed protect the we look caution to at because up We must value. want dilutive plan the company, share to shareholder the these ends to don't business being fund us especially solutions on day

I'll relatively hopefully, provide an soon. So update

anything Frederico, to add to that?

Frederico Figueira de Chaves

that's No, right.

Benjamin Schwarz

green hydrogen Thanks, then HEVO-Chain a from solution? a to Fusion a standpoint, position commercial Gavin. hydrogen? the you pay levelized willingness customer in disclose Are And cost to of you from Fuel's are seeing for premium

Frederico Figueira de Chaves

Ben. Thanks,

refer our of hydrogen previously therefore, solution. first time the back in the already slides apply to levelized we levelized said, both And in it HEVO HEVO point I'd HEVO-Solar the have where we noted time point that at HEVO-Chain. at people that cost our solution. shared in cost the hydrogen simply point, even that and recognize on for So, We of slide

the believe levelized industry-leading. very much cost on energy cost depends for So on is made we And any project it public have hydrogen before. We and of a factor. final of that load the project the for

solar-only wind. we projects or we're solar wind modeling solar seeing again, it's are the and So, with results phenomenal with and HEVO-Chain. And for

would refer I back So that. to

question. part there a sorry, Ben, to second the was

Benjamin Schwarz

Yes.

Just customer on willingness to hydrogen? for green pay touching a premium

Frederico Figueira de Chaves

more -- the the in able in extremely been seeing starting that and happen we've is close we something agreement. noted, market market we I projects This and note of come and make Europe. to see are We'll as rare shape we to hydrogen hydrogen market. demand absolutely, is of is sort more. into green the three So purchase Those guarantee the that that take that origin And say, truly of attractive. should out first prices effectively

seeing that So, we certain volume amount of of green for premium. are a certainly appetite a at hydrogen

Benjamin Schwarz

would in being Fusion Fuel or if question to how aspirations proposed at and impact regulations Great all? utilize here desire three PTC, pillars $X on the considered the the U.S.

as here I add. sit in to and just Frederico I'll Gavin here I chime in the U.S. invite

so which is additionality, production; I renewable three installed -- who say, hydrogen matching, consumption then with an temporal those it's the hourly the and aren't deliverability, is installed, that energy co-located production proposed recently using should for facility. on matching clean are: aware, basis; production So renewables with energy pillars using only

the Interestingly, acts those earlier first were by year this delegated that two pillars the adopted with are consistent EU.

already represent design don't us for our we we're in doesn't project with portfolio. -- compliance meaningful So it European and our hurdle definition a as ensuring

respect technology production. as And well co-location, deliverability, then renewables with with both with designed as to is users our modular for end

our in projects So meaningful approach U.S. the forward. to don't changes going anticipate to we

on to Anything to one. add? next the move Otherwise, I'll

Frederico Figueira de Chaves

Please, Ben.

Benjamin Schwarz

submission. on of the does the from here HEVO-Solar feedback at Has question HEVO-Chain that And A if the how Great. to all? project, been received? the IPCEI status impact transition

Benjamin Schwarz

but I'm we've IPCEI, The problems in to working now the IPCEI to HEVO-Chain this to notes, the cause -- HEVO-Solar programs, awards ensure to for speaking I we transition doing a continue have fundings been coordinated not that as await and in final mentioned doesn't different specifically in decision. the my that project, been we've granted. all the manner to forming say, I'll generally, from

received we on await continuously timing the as indication be. expectation projects pretty No last decision. questions sorry. throughout months. We not receiving the have the have timing, would do much been We when on to eagerly nor And

Benjamin Schwarz

given Great. revenue you a are How guidance commercial about fixed question revised challenges the the costs, reducing and during Thanks. Gavin. Perhaps for thinking discussed call?

Gavin Jones

Yes.

base reduction entity much review the us So, continue to cost quickly so All are to ensure it's an have can being our meet possible. importance to matches costs for a think and of efficient operating a as in general base cost that our that the our from embarked be of paramount cost like as on we inflows, milestones rigorous as costs. And I we materials considered.

Benjamin Schwarz

is strategy you the status this Gavin. the at alluded previous given what of but U.S. new is you any of -- to Frederico, the to plan point? the of And USA? do hire the Fuel What status earlier, of Thanks, departures leadership co-Presidents Fusion

Frederico Figueira de Chaves

definitely core the that recognizes are for U.S. mentioned we past there. that a the mentioned, projects We've in several As us. we've market pursuing had

work that bring I will discussions partnership leave to in I with that, We for we to U.S. together intend yes, market, with of set And the there have America. will for us. U.S. yes, make are do most clarity to partners note just actively local the hope in a engaged coverage is the which opportunity a priority and question. the some everyone market

of in process also the licensing to HEVO-Chain licenses be starting the the We have have required U.S. the also have -- for been all already looking at solution our sale

in very certainly it's strategic priority -- in much list. our the So,

Benjamin Schwarz

and to information of drivers America? project India, between what Indian the respect and difference and the in With North Europe Thanks. the environment subsidy or given new on grant that India BGR are aspirations in the notable

Frederico Figueira de Chaves

with already to context for support just of So, market a This demonstrated the broader the effort project Energy. why about support, to hydrogen goes talked attractive market. making it needs technology BGR an we future. India hydrogen partnership beyond the is have substantial in for It also seen Indian does It be note, plant. and

and BGR what context the just but of into and not that are those note to broader effort market. in not discussions that specifics projects, the to go and our those is it Given done the in of Indian on activities being a attractiveness the side. I'm going there see side on we

Benjamin Schwarz

or you of just more as a little help bit Gavin, guidance recognized just being to question due to at reduction the Fearnley bit Securities. €XX Thanks. commissioning? XXXX? delayed a more from Torkjel Or contextualize due a just million grants Is revenue that in for not that? revenue perhaps Can on here elaborate Jordbakke

Gavin Jones

Thanks, Sure. Ben.

so So that the in the longer two of because the projects, €XX ahead million reduction Gedisol the projects and purely HEVO-Solar is no XXXX. will go

have would will have have purpose once revenue those special would projects And on vehicles to basically sold investors contracts we develop been would related that so the to the who project, that those the the have taken recognized electrolyzers, control HEVOs of the okay?

the not than grants the other related grants to XXXX. completed So, fact because to required that projects the be in

drawn were XXXX, relevant. I be longer be because They think the completed the couldn't grants in project couldn't [indiscernible] no down.

us completed recognized. more was timing recognize a that to issue being as for couldn't be not project the opposed grants it the to revenue So,

Frederico Figueira de Chaves

project. the coincidence that Azambuja Gavin, projects the was by have for the is Ventures was that Hydrogen I'll simply Ventures. to was we also It one moved the now investor project just HEVO-Solar of that -- and that counterpart impacted the note Hydrogen

everything concept, a It same. of the change use site discussions. the the the is remains So effectively, case, simply in

with them of This already So, that rather those year-end. advanced we're closed and with be is this whole a location is discussion. that efforts why we are an new we by evolution well change contracts believe can than of the making a

Benjamin Schwarz

or partnerships broadly, their Bamford the heavy-duty we in company a J.C. with Frederico. but stated a companies given strategic here. leader desire be is partnership question relates hydrogen-powered more Last like before collaboration It was to Thanks, equipment? there question to around considering a close whether

Frederico Figueira de Chaves

Just for partnerships. spectrum broad us, we're of looking at a

portfolio. with the noted projects develop we Italian have group before, commercial I with on metals. before our today partnership fund Toshiba to development mentioned partnership we Duferco the We platinum market. some R&D a our of the in and European in that and position leading maintaining partnership a the coverage As for in discussed Energia

hydrogen But being so -- going we like on various that. are it's of at heavy speak engaged or not and understandable. names we a users number have them of looking users I'm you specific users So, to and yes, in. industrial about of are in partnership as specific types included

Benjamin Schwarz

Frederico. Thanks,

second So Thanks do quarter to that it will joined. our for webcast. who everyone

If the free out to and update. seeing at you all speak have or myself to look please me and ir@fusion-fuel.eu, reach with or we to like next at management, to team again additional with if IR you'd you feel questions our forward

Gavin Jones

Thank you, all.

Frederico Figueira de Chaves

you. Thank

Fusion Fuel Green (HTOO) 30 Aug 232023 Q2 Earnings call transcript