HLGN - Earnings call transcript Q2 2022

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Operator

Good morning and welcome to the Heliogen Second Quarter 2022 Earnings 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 prepared remarks. I would now like to turn the call over to Louis Baltimore, Heliogen’s Vice President of Investor Relations for opening remarks and introductions. ahead. go Please

Louis Baltimore

and operator to everyone. Thank good you, morning

Executive today glad can found heliogen.com. us quarter second Officer. of could Heliogen and on Chief section results on Obiaya, us a you join for website press Chief Founder the XXXX Heliogen’s afternoon call issued Bill Investors our and Financial be at are Christie our We’re today’s Gross, Officer; yesterday conference in its call. our With that release

the on call a as we actual result that for this and the discussions as differ call time events. on information forward-looking our to no operations, and on results forward-looking of guidance of statements the a statements, uncertainties. could by the we subject Factors customers assumptions today, XX-KA. comments new materially As results forward-looking performance, reminder, of impact found statements future from are cause with be yesterday’s or progress. this and the to these release include proposed report to and our with filed contemplated documents company can press various those statements. Actual year from These which our materially amended including legislation, Any including in company’s financial and to full statements could other assumptions undertake and future Form make time risks and obligation XXXX, update that in annual are based status differ include expectations SEC regarding potential on commercial contract

comparable company replay SEC. X-K a on for measures call to information that, GAAP in pleased website which press More And be measures of Investors measures yesterday, also be contained Founder Chief Officer. GAAP and from release the our over and website furnished financial our may the or measures. issued most During is and the to an is available US will with and to was certain Bill this detailed non-GAAP substitute to isolation available with as addition the in A this we non-GAAP the the reconciliation to these this call not considered in Investors Form a about should our Gross, call also refer results. of Executive afternoon. turn on of section I’m These section

Bill Gross

this Thank and incredibly excited us company. you, today everyone speak earnings what public as joining to third with morning. Louis, for now is to thanks on our you call I’m

you that an our as out laid First, for this update we key I’ll on earlier progress year. milestones provide to relates the

to We energy. and net contributes is to the mission and build the profitable largest decarbonizing an Our enduringly scalable chose heavy by renewable underserved wildly currently is global ambition by sector industry heavy industry. because world, it’s on that to energy consuming focus business in zero achieving

which replace of of have Our that fuel now. industrial technology needs right industry. systems, with energy sunlight, we And we fossil developed meets the concentrated burning believe needed are heavy especially proprietary

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detailed our sky overview refresher, would refer year I’ll of If as full to and new a prices. XX, more result we during to our our difficult very from conference a call Heliogen like business. story which Despite provided a you a you’re or XXXX macroeconomic March current of high seeing customers the earnings cash sectors mining in prospective and extraction are backdrop, commodity resource flows strong

some volatility to for method of from offsetting consumers, the attractive fossil proposition is energy huge reduce prices more fuel avoid wild offer makes metals are for tailwinds they’re higher heat footprint. heat direct even concentrated to the opportunity and an of mining both customers costs of Heliogen’s carbon also to and because customers However, best because decarbonizes. prices, one are can the this their free from as We and from customers a Heliogen replacement revenues. these the higher in believe producing margin and we today’s fuels higher seeing fossil fuel sunlight generated prospective carbon fossil an ways thus our

this with Before individual year call we call. am our on that on pleased say reaffirmed remain plan full and we into for year laid milestones, I out earnings on get last the track our to our we on earnings progress that XXXX

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will X,XXX complete. We the produce be as to heliostats ready as first permitting our for is first facility commercial soon scale

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solution XX of and clean of lack the both potential aviation As one fuel goal pipeline is part Heliogen decarbonize first expect demonstrating is day, includes and integrated the a demonstration building barrel Sustainable and over Energy, next case to a approximately approximately a both technically years. fuel million sustainable produce for unique great that step fully be collaboration X the LOI feasible develop study that Heliogen’s barrels aviation the Dimensional a of to Dimensional sectors demonstration per to fuel Heliogen project between to energy a for a economically today. technology

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Obiaya, like call I’d over Now, the turn Christie our CFO. to to

Christie Obiaya

Thank joining you, and everyone for us. thanks Bill, to

getting I country’s Act express believe we efforts Before our into benefits QX signed this climate If Heliogen want for a providing would change. meaningful to our enthusiastic to the law, first support much our of and proposed while legislation bring needed XXXX. Inflation boost to our into Reduction results, combat customers to in

by investment ultimately As certainty by actively suite that improve renewable term that There lowering energy development. of market this technological industrial are and our of like energy the financial incentives economical in are companies on several includes that for the written, in investing manufacturing providing domestic, prospective the bill customers. cost decarbonization return make bill a will and for provisions Heliogen renewable more longer

this larger with potentially projects. projects expect will initial forward We Heliogen increase move to willingness with and their

of model economies a adds that benefits business tailwind greatly growth us. For from high a scale, with for substantial company, a this

Energy energy, storage, to angles. Additionally, sustainable perfect can since that customers different aviation solar plan solutions, gallon for Energy, By includes to production There example. life air, the thermal a reduction very feed fuel SAS Dimensional benefit Heliogen our LOI new will and start using hydrogen from with water as we greenhouse favorably. gas are and in cycle emissions. offerings our sunlight, multiple is increase and view credits per bill the depending a energy do stocks, a The at on airlines Dimensional expect the process, $X.XX we as

approximately reported we results, to presentation. that of case. in see bringing our progress, second of We’ve revenue Heliogen our to expect said the be contracts $X in can Turning revenue during million the first total weighted our quarter earnings our you XX Page half this and is on million. on half XXXX that to year revenue $X.X still second which previously

as quarters contract, March equipment ramp in third and in power to in revenue additional our our up the first expect for five-megawatt the California. lead Energy electric for begin under project placing signed we we a long Woodside fourth for We facility back considerably Southern orders demonstration on

progress with in contracts. on that Boron, been continue make module their mine different multiple selected We negotiations we’ve for the includes deploy to to California. at additional customers HelioHeat on Rio This Tinto

another of These finalize target for ranging guidance we The refining customers LOI the great years. XXXX. team is revenue heat continues to announced Energy along growth we March of mineral example mining Our that team are deal the offerings. design sustainable which HelioHeat our with for that to growth aluminum to value major contract to our with will too. the the high of pipeline this with our of modules contract liquid contracted another States in serve a over the for the technology has our product we’re our of that been with production avenue demand and us in facility, in new number from working progress United end This low signed we as this sales we for make would and for abroad. fuel, our next industrial newer Dimensional we’ve the The applications foundation modules our include work made. case applications Woodside prospective recently of In applications year pleased to other And this get progress technology geographies. the is of few as harness our

with case I’d like key expecting that, we’ve with of progress other to turn half forward with XXXX. as back been busy to it And this closing sharing remarks. and our the for we As commercial second of milestones, most execution look now unfolds. to you is And Bill a further

Bill Gross

work saying from their help lead Thank how industry to like energy heavy Heliogen to intensive to by I fuels processes. updates eliminating I am call with forward you, we the cost today’s effectively progresses. as by decarbonize I’d to you providing Christie. conclude look thrilled as fossil additional year

edge up Heliogen also it the while believe in is generating Q&A, mission, to open to for What will technology that are deploying. have a solar underpinned in never Heliogen market leveraging energy by turn have we to is what to we here growing by efficiencies before seen offers the on technology. high generates large we industrial product out capital and believe Before differentiated proprietary cutting succeed production. I This its please software Page its we laid you XX. enable returns been

much help patent to across competitive extensive to trade our maintain reduce you our our answering software these too expect plan portfolio, potential We value so secrets field attention, your to to and chain AI beyond the look we the The as defend learnings this apply your technology costs. extends advantages. and forward us for questions. and Thank we of entire

Operator

Thank you.

[Operator session. Your comes a Melius We be with Research. question conducting will Wertheimer Rob question-and-answer from now Instructions] first

Rob Wertheimer

everybody. good morning, Hey,

Bill Gross

Rob. morning, Good

Rob Wertheimer

that you. with got if aviation fuel? aviation technology end I just end Dimensional and markets an into how don’t How sustainability that use wanted thermal interesting sort advantage. fits process could, new if approach I don’t you know others expansion to of does – know they’re start if efficiency you’re wonder gives technology above to direction. going for ways to or Heliogen does with wanted one comment this. you an of I into work the I many with if on fuel I it different application? sustainable I start

Bill Gross

Yes.

to lot sustainable thermal you COX you example. applied amount sun, HXO energy those energy up you huge And need in sustainable a we place and energy into O. things aviation in benefit need industry this aviation To over low all of and of can make key H fuel get cost, Both break the need to energy and our break specialty. Our that’s fuel, make because thermal from and C. up of thermal be continuous to is a thermal the need that the

we COX board. low as be energy the where one used our area footprint reduce look cost So can thermal more across this at to just

Rob Wertheimer

Okay, perfect.

your where the know just there’s interest as on shift end time? mentioned, would’ve maybe than secondly, I does that. markets? thermal, shifting I over more I the you’re is from a inbound understand your then is is you How interest inbound think that any or think I from how And advantage strongest. don’t various where demand various mining seeing whether just in your target? comment you market highest end to

Bill Gross

because energy, a money investing world recently. the us we’re now almost hugely We thermal with all these big for very refining with is in and recently lithium said mining operations off converting than have perfectly energy Mexico, energy of operations around course, demand mining so matches the also from advantage, is all say efficient in a in of There’s sunlight from people really that right would mining States, we’re needed the Australia. valuable And demand of the perfectly of making and license the because because need and thermal thermal world, print I to that mining most the lithium three that of transportation start United what’s more all happened there’s that, a And for suited electricity. to of is and Australia. in targets what a huge kinds. huge electrification Elon we the Chile fact of geographic amount makes times

Rob Wertheimer

perfect. Okay,

Bill, and about have of thermal that may world. but there, projects not, talked on maybe handful PV seen with a have continue energy Just been you coupled there’s the around

just as solar collect the down touched Is Heliogen whole I PV which that’s generate X,XXX the you harder more or comes give else? spectrum, advantage, cost energy, continues resistance with there curve energy? else collection? photon, energy more heating solar ability advantage to think the a Is you you in C collect an do collect I it to just you Is it suppose. anything that anything to on

Bill Gross

about our Yes. Two are things critical technology.

the we thermal avoided XX/X, replacing provide about it of And is second best which cost almost industry the spectrum, the much PV all a storage, a really with of such the is in is down, that’s the even photons that finding. go. efficiency, reflectivity as cost customers the And you because First panel by our heat, customers and higher and said, you PV electricity comes entire And electricity need. than the to don’t get our a can mirrors, at to what are you need need the higher we’re energy if our we as of better way possible. collection conversion using

Rob Wertheimer

Perfect. your Christie, of way does I itself? ton on ask could It funding for change on Thank one markets and access There’s the for any for it construction. on your like you. I advantages support you just access know path there’s capital to fee any PV a in directly incentives IRA Heliogen customers. applies various to to for solar your capital? if Heliogen, don’t end anything thoughts seems

Christie Obiaya

talk to Yes, as investment and tax includes is different heat Act and credits because in benefit see in applicable absolutely. advantage, ways Hey, We industrial expand the uniquely position Investment Recovery Rob. addition our production and process decarbonization question. morning Heliogen Good that extend on a will and the are power several you to to and our this projects. great hydrogen strong act storage. because huge focus to directly a to

is defray to help improves storage energy giving then energy the solar the to us market clean directly our customers, will access provision own cost projects And great of domestic hydrogen credits, agent’s and capital. benefits manufacturing so Heliogen’s the for more which tax momentum. for few upfront And

Rob Wertheimer

you’re robotic status lease and well. talk at for else talk bit what you fascinating year? anything bringing it generation, last online I the Can my your maybe Bill, there? in And making the mean could are that the just; with a the production hurdles, about any production see capacity to by is? And as you half that’s how one, cleaning just little any perfect. of Okay, about to comfortable the you in progress, Just least factory progress second fourth the was

Bill Gross

additional for more tour first capacity, have Long the benchmarks and we manufacturing we’ve Analyst that of facility shifts installation production continuing our We even process. our necessary the installations. Day. to plan But our already And are to can in produce and give Beach. a on to our the rates And go achieved already we in refine to rates achieved we

are operation, videos earlier, robotic for impressive one And production So, it. of only we’ll the in the my it’s really can we’re of as heliostats. share you I comments in see not that operation the mentioned if believe a of a the using to And I people have only done ever been in can heliostats advantage able heliostat the actually to assembly that produce production them techniques factory. factory take We other not of. made be our enough small in that’s because automated

are that meet already So, we’re show the to there customers. really proud to and off our capabilities first

Rob Wertheimer

Fantastic.

be Okay. I I’ll forward look that. to there.

thank very you much. So

I for you. what Thank I think have that’s now.

Bill Gross

Thank you, Rob.

Operator

Siebert Your next with comes Shank. question from Gabriele Williams Sorbara

Gabriele Sorbara

Bill and morning, Christie. good Hey,

With Is the talked there was that the installation to more little can wanted ground. there. with around modules, would event? little permitting full the a color approvals primary just a is a bit a service. the on of building see little catalyst kind little If being if a proving Bill to give color up you the and I you break bit on it XXXX with of about you bit wholesome talked estimated first maybe waiting Woodside, a about commercial color more viability that Thanks more more when late give of in timeline, can timeline update, bit module

Bill Gross

Christie?

Christie Obiaya

you? How Gabe. are Hi Sure.

Gabriele Sorbara

Doing well.

Christie Obiaya

Good.

So good question.

permitting Woodside, So in not but through the permitting now to Bill summary, it’s every been as expected. on step and of project, as we’re the process the mentioned on Capella into get going process, working

with and permits the expectation been take Capella And associated to during scope begin to is this to all XXXX mainly project that has Woodside after beyond due plan will project, which our for the receiving necessary Energy construction we complete So, DOE approvals. novel in XXXX, the the awards.

power. drive for some producing includes such the very super critical turbine innovative as this COX a reminder, to project aspects, So generator as

of to And project, application this Heliogen’s these greatly award beneficial the and for power. overall Department of all be which in will with the future so Energy elements

a, XXXX, but do to expect start We like beyond we this construction in project more XXXX. to be operating expect

Gabriele Sorbara

you. And sooner online seems moving to module. that would on Can like Thank than it you’re Capella the speak, that Rio you come Okay. project? forward Tinto

Christie Obiaya

question. Great absolutely. Yes,

engineering. So we that work our, of to year. agreement, frontend underway still Rio to HelioHeat continue of And on we definitive find with module end is which in this the terms do expect before

so And completing be during still project position as in XXXX. we’ll great a be planned to that

And the additional have, so kind the of in the simplest longer HelioPower elements overall whereas is fastest and yes, and than HelioHeat HelioHeat the to and because construct up we offering taking that components ends design. HelioFuel of

sooner so the, you’re online expect the, module And Capella on spot power to do XXXX therefore Rio Tinto project. Woodside come in and the the we than

Gabriele Sorbara

last hiccups to Can delays? topical. you no the materials? ensure great. I have execution, inflation that Are speak has guess to you you having for very any Okay, you or And issues, are been procure environment smooth you guys? one, doing what

Christie Obiaya

Yes.

the just on seeing in the the the hopefully sustaining rest of supply this like the team of commodities do of chain we that later global We’re based our a seeing impacts next are analysts, We certainly year the, of expect, and drop the starting couple cost over prospect economy. critical years. follows, analysis

over peaks of we’ve of that of And cost least, it. that some avoided coming looking inflation it’s to their year, down seen offset least like so felt work of fuel And to able impact some last the on customers certainly but at willingness we’ve comparison at I’ll material from say that helps by driven our largely the be our cost. us to fossil being pay to we’re

fossil And so certainly have a positive prices given been. that’s that, of kind fuel where offset

Gabriele Sorbara

over. Thank turn Okay. I’ll for That’s me. all it you.

Christie Obiaya

Gabriele. Thanks,

Operator

over closing Thank would like you. turn floor remarks. I for Bill the to to

Bill Gross

but you we I heavy perfectly helping having is stop much your now. this really everybody set reduce fire could joining very burning a the change to excited And footprint helping fossil us. Netscape we for things. we’re play their where we its objectives right contributions must and on thank about transition their Heliogen for us to companies, burning the Thank positioned meet make, both they’ve cost today. again in carbon to for are themselves. industry in And for that world fuels, stop things. moment thanks to the much and new all that And Well, climate of joining questions. avoid make claims feel very is you especially

you look quarter. forward and We’re to you next with sharing to so again, we excited show our progress

Operator

teleconference. concludes This today’s

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

Heliogen (HLGN) 11 Aug 222022 Q2 Earnings call transcript