FCEL - Earnings call transcript Q1 2018

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Operator

Good morning. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to FuelCell Energy’s Q1 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator of VP Investor Gelston, Relations. Tom

begin may your conference. You

Tom Gelston

be results morning, to call XXXX. the Thank released FuelCell you, presentation quarter The welcome good and financial Energy well hours FuelCell that will Relations earnings earnings replay Tiffany, earnings of first release its Company's the quarter this this as section the www.fuelcellenergy.com. and of of available Company A two This morning, are be call the as for first referenced available call on conclusion will website after during Energy. Investor on a of for approximately at website. XXXX the

financing forward-looking Before its regarding to to would the like financial fuel development, other continuing its being Securities statements, to limitation, statements cell our of proceeding risk the statements Company’s factors the call the read to and would expectations results the is and technology forward-looking like call, the recorded Commission. this statement in with cautionary I remind and commercialization information regarding and Company’s everyone contain discussion anticipated U.S. with including Company’s on with the and I without respect plans. and that direct and filings that plans business will today Exchange listeners

Now, President I over and call would Bottone, like to to Chief Chip? Chip turn the Executive Officer.

Chip Bottone

cell newest of by Korea's or plants XXXX flow and enhancing key inventory is This highlighted performance turn the global X cash our to delivery Southern the X cell demonstrating highlights. Slide customer business. results statements, first The Company welcome. we project Revenue power sales first that Today, financial and to on from on fuel Tom. KOSPO fuel gigawatts our delivered progressing for for construction first you, payments for Please Thank Power for announced large first now position morning power projects. quarter the the XX-megawatt schedule. everyone execute utility quarter park and for quarter our on Good assets. and was recognized financial park was for ability project our our we our further excellent increased work is and cash in owns generation under KOSPO's who of margins

the projects. begin will and year during full this in summer. commissioning a installation model it spring KOSPO and of for We power bring was large future a the showcase to

is industry leading majority Korea fuel solutions market South fuel the profile high like or Company by park is Hydropower GGE, cell larger for other includes Korea and projects cell which KHMP. for a large XX-megawatt owned

a multi is see and South parks opportunities utilities. near-term large Korea sizeable cell for with we country's market megawatt the fuel top

making expanding and are major progress actively on our developing projects. team in market this We bidding in is numerous

also a solutions. purchase seeing Campbell which Soup announced or long-term Farms, a with progress power Pepperidge our good subsidiary Bolthouse a Farm, States. week, PPA We XX-year we Company, Last also we user in are executed our that United of of agreement existing customer owns

benefits system food will will from immediately This megawatts power customer California. or and emissions reliable operating Bolthouse Bakersfield, We low-carbon CHP power two efficient processing This savings, on-site Farms multiple plant capital heat generate reliability upfront at project SureSource reductions. steam. electricity install plants XXXX of highly no or investment fuel and with combined in innovated solutions, benefits highlights power, cell our X of

profitability. that portfolio. maintenance generation growing our we’ll project and generation be long-term from to ability include offer turnkey services. operating consistent generation In a to addition, our solutions retaining in EPC, The our contributing strategies, PPA-based Illustrating are and industry-leading producing long-term assets comprehensive this customer revenues benefits future

in automatically takeover town school. town's installed the a being independent case CHP and it Connecticut of grid key that placed the state-of-the-art in microgrid mode megawatt powering in X.X in and Owned high utility, facilities by on-site certified regional Avangrid Woodbridge a Our of will was at the power plant power outage. recently in

is the for microgrid the making cell source scale. fuel of Our outages, sole a seven facilities power plant this of true during town's power key

economy. power as so known solar wind of and enhancing cleanest Stationary are the are fuel the ideal legislation stimulate showcase on for an to projects growing the significantly includes wide for sequestration like emission three February federal projects and distributed investment the market, competitiveness On cells, fuel energy by address facilitate the long our for and capital Woodbridge The high sequestration as FuelCell cells pleased The and awaited financing is with important field investment the extends this in have fuel fuel our project and ITC intermittent reached expands in service Congress credit and availability elements today our XXQ help a call. existing milestone will multiple this in into will fuel which will and project interest. on the called levels deployment provisions. The momentum. placed underscore for of grids. American to U.S. ITC product Bolthouse supports generation investment complement because tax the credit the a and also reinstated good bill We being tax customers. and that solutions I momentum resources power manufacturers highlight carbon credit leverage for later Xth, projects developments pipeline is Farms cells, The strategy, playing microgrid the key dioxide expansion continued public credit. contributing other oxide in policy cells range applications Recent which or the sources Energy U.S. lowest reinstatement cell the carbon of and market market

carbon is the to bill credit It that $XX value COX provides the per that for up the for captured increases First, ton ton COX $XX a is and about credits. reutilized. of dollar sequestered

the be reused. no of eliminates Businesses to would or credits of on amount take credits. that XX the the on limit have can cap the Second, it of amount previous available years COX advantage with sequestered

by sands are carbon the extends which encouraging legislation our COX, captured establishing reducing credit and like invaded Financial instrumental scalable power in Mobil, and the attractiveness we by are tonnage Third, with of lower carbon credit recently carbon implementation. captured of progress captured Both as Exxon broaden XXXX a our providing their partner that work our threshold future. as solution for excellent the progress. for global the applications well are the our these and happy carbon referred looking of in energy U.S., will accelerate plant goals reach energy companies sequestration and with the incentives have by a captured to deployment. a tax developed carbon technology, and in deployment Working producers in coal leader, summary, capture revolutionary could very for investment closely accelerate executives prospective Exxon carbon this innovated oil technology Mobil making value gas solutions. additional capture new to applications and

Financial progress after with service Energy. our value of results Texas company's The private for quarter. built expected in we X.X-gigawatt Mike? partnership mix coal first power as our coal-fired with be continue plant field would and the Our used Bishop, operations our to bioelectric in financial the U.S. preposition in energy gas reviews our Officer, are Chief discuss I Michael at Department a and would make dual plants XXXX. station Alabama generated

Michael Bishop

project to morning of total the be company South for Company owned of XXXX first Construction quarter under FuelCell completion Please revenues compared Energy megawatt Korean X, Slide increase order Thank KOSPO. to million you, This $XX of revenue financial for a joining of quarter reported in utility a Good for Chip. first million titled you our XXXX. reflects the Korea for thank the and overview. call to turn XX Power by $XX.X Southern deliveries to or today.

SureSource first loss in quarter decrease following million in primarily of the lack totaled XXXX. the the the driven development This XXXX. for project to short executed made of the deliveries This period on Operating $XX.X As of net project by and we research quarter was expected bottom compares late the a diluted for the The contract $X.XX in picture to slide spring the indicates the the product XXXX totaled period. commence XXXX in of in expenses August of diluted expenses quarter common Korean XXXX. the in fully we the Commissioning is XXXX plant first operational due summer. Gross be X.X for this XXXX the million utility profit the items $X.X of attributable was a loss to quarter shareholders of XX.X%. XX%. $X.XX for and quarter and $X.X gross for XXXX restructuring and of shareholders a XXXX million million our right lower expenses scale to KOSPO first Net to or introduction the quarter expected projects XX.X is and quarter in primarily Net includes two was time. profit compared completed basic to megawatts have Higher of sales. percentage respond the a quarter for share this the in first gross first million the first new XXXX. the a compares and ability and share, basic per on of of to gross highlights million margin and for for common first of first on was loss percentage of of margin rapidly attributable X.X global quarter to markets execute gross profit XXXX of or fiscal to basis. This the tremendous and of per $XX.X totaled

deemed recorded redemptions Act Company XXXX than C ended to Cuts less million stock. Tax in the to beyond. XXXX. period a XXXX a had a activity The is months in periodic U.S. carry and has occur installment for price non-cash when March enacted X.X related C incurred net on three is was XX, conversion operating dividend period. tax was XXXX. December credit from an preferred January preferred federal Conversions $X.XX the to benefit an Act stock the and generated of the XX% forward which Company XX, reduced deemed established that for occur Company First, effective final and making The Jobs stock per common million totaling Separately to on in conversion of in the shares payment the expected totaling installment the results income which Series X, $X unlimited XXXX, XX% dividend. been The also in losses share payments January related Series tax and

tax taxes, Company's to related adjusted code, to compared or these is depreciation of research by reduced quarter the million, to result a XXXX earnings the the before deferred and a negative in was million. in-process Adjusted liability tax and EBITDA, X.X XX.X $X includes totaled measure adjusted cash Cash, which changes as equivalents negative development the amortization measure. first non-GAAP As of X.X see and cash reconciliation quarter equivalents million January XX.X release of cash XX, of XXXX. our of EBITDA comparable This XXX.X and restricted a to first million for GAAP restricted most cash. million million Please XXXX. earnings for totaled unrestricted cash and the interest,

Energy availability We also borrowing facility. NRG million $XX under have revolving financing project of the

of million order. will the the increase at the The backlog We approximately XXX.X the the to this recognized are receivable in Korean in from a project related contract net million KOSPO backlog and pleased approximately quarter primary utility generation of end X.X of of technology year. end revenue Backlog million, at approximately totaled backlog in when cash XX be quarter. and commissioning related million. with the reduction later XXX totaled drivers remaining the record were fiscal project. the XXX first the fits first order Product level backlog totaled quarter sales advanced $XX service of XXXX, inventory accounts the to at million The million, totaled of

not a project. the the of left Farms subsequent activity illustrated breaks end at include The right on project billion quarter Korean chart of to utility by end. and and X-megawatt Bolthouse the awards slide, service chart the Backlog at project project backlog down $X.X not category. the executed slide do the in As projects contract awards combined bottom top of awards the project the and backlog our approximately first include three Project LIPA quarter. the totaled of by included

has are portfolio Upon of of we these given calls, years excess megawatts U.S. up in a shipped these the As producing revenue in our is over projects of the what building with the discussed long-term XX we revenue development, under for strong projects. we have other currently the profile prior leading projects Company, Company. LIPA project cash retained cash of market flow be XX would generation owner prudently in generation billion periods backlogs if have sustainable Company by and the would the completion the of to X of flows the for to portfolio believe

with opening pleased are we tax the equity financing mentioned ITC options Chip extension our up This by As cell. the opportunities. for for broadens projects fuel

Company In projects stand and execute sustainable and believe we good profitability. seen quarter, project on turn are to in positioned the the backlog and is on these approximately have interest Chip. of conclusion, X.X us have at project we other generated front We and for opportunities billion, pathway revenue underdevelopment. the we call now well that to back I to Chip? in pleased will finance cash the with market the our awards

Chip Bottone

you, Thank to Slide service. turn a Mike. energy as X, Please

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Beach the coal California. Toyota's in are slide, facility on or of be as the the we production hydrogen of Finally, excited executing to depicted on plant Port Long side new right

a model on produced have hydrogen. electrification transportation We intersection and of new focusing

and We to keys project with execution have which this model, financing matched our deployment. are global

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on markets. continue clean of of cells backlog portfolio our for Favorable our value the solutions. more We policies fuel for all energy and record have made even continue our well strong very target diversified of execute our attractive to proposition growth

solutions Looking forward, best existing energy of built. with Execution attracting our and customers developments and continued to our oriented service our portions our foundation profitability I revolutionize the legislative our time. will partners am is globally. at ability Operator, happy steadfast which several to of opportunities, pathway favorable for on I'd be the markets to in opportunity flexible success this question projects, on continue new take be to

Operator

Your question Instructions] of Riley. [Operator comes with from first B. Driscoll line the Carter

Your line is open.

Carter Driscoll

probably obviously development the Are ITC fiscal conversations. waiting very had elongated greater just expect opening conversations they maybe So we long would but of nature I some and those and about just characterize time tenure being some maybe opportunities passage. in start the talked you scope? given the just we its 'XX, you a maybe or just existing with with the customers, and impact up new favorable since customers of

Chip Bottone

days. tax mean and the I the answer of financing side but financing to credit and the itself in and talk and could thing start us about even reduces I'll takes it end the the the maybe though aspects. all to has Mike market or project positive XX% XXXX financing, But relative project XX%, Chip. creating that to the is ITC a down how opportunities, customers, the a way service This it that about first certainly impact,

that. been that of basically it but about accelerate try we've is to obviously projects. seen obviously, heard it call financial it has they go there will and margins forward or have, frankly that that to with it results for projects It people closure but projects just So applying our expedite because helpful pipeline the to we the creates more enhances no question very-very

to the a And that have projects upcoming the a level do well number that or so megawatts Mike, us want of to in of also there. We help RMPs about at there you allow of so is field as timing compete it? XXXs playing bidding really us whatever is comment critical vast to so things, we're should

Michael Bishop

to it equity improves us when opens This yes, And a opportunities the obviously to tax that, is follow-on it loan Mike. budget and helpful comes additional for our ITC financing up potential very with project. just value to financing financing,

projects has as and financing portfolio. So, our increased helpful the that in we're we will get it interest level on in long-term project our be building and

Carter Driscoll

This else. more just sheet. Is your I think partner retaining decision financing follow-up them not you the you a even to able that. to monetize as you I to might potential potential want changed but balance as on a it then leading this LIPA towards mean make projects? is just easily on because were be again would someone favorable,

Just sense a be might ITC to application? of LIPA the get by projects trying changed particular how the

Chip Bottone

profiling would financing on our types get. so we projects it the the and plan would of fully LIPA broadens to we currently monetize those just obviously that want sheet as financing of would in interest are tax partners, types project on and the balance I'd in say equity, We meeting generation those that projects category the retaining brings awards that

do a sale the does, evaluate For projects we every cash recycle and worth do that project. makes will prudently well. carefully And capital, will as sense LIPA the to receive monetize long-term every analyzed it benefit, same and Company makes worth flow to we sense the gets it. retain for through project and that those we with that and will for projects project the But happen product

Carter Driscoll

on the rapidly directly are can maybe project. you're you I on, similar maybe projects give identify range versus and XX opportunities little doors you them shifting obviously executed specifically? the you you characterize your size Korea, kind talk the Can maybe push And scope plus maybe mean, within megawatt number pull, us the just to still and/or maybe of Korea, about of a to kind XX people versus bidding is over coming specifically on updated you then of so the knocking very gears megawatts, the of project bit

Chip Bottone

Cart, I'll comment this on thing. is Korea the Chip.

two things mean I United it, installed is, a which of have of Korea, opportunity because in makes had overall number the coming our to a second so about one KOSPO capability. to projects, in only terms them. it's megawatts market very-very referred lot RPS of the large So States probably there's objected us people they we to XXX And know directly and/or us because technology from being that of

Secondly, it's a fairly concentrated marketplace.

So The we I of and XX projects generally large megawatts. we we're are anywhere mean would say as all. amount on that of projects range the with volume mentioned XX things we from dealing megawatts working see to their at I are before

that's And wheelhouse well. so, in as right our

So, compete safe I of would as that term some good it's very comment there very large it's team projects job and well a I'd say want near done well. are closing we but think some to expect very-very has to our don’t exactly say there, we I a market, I others represented well and

Carter Driscoll

being And to last pull-forward to 'XX pilot from wait DOE power for other in then I about me. either that one the to maybe you potentially don't potential the Does just on lab project, forward accelerate opportunities? Mobil just with the what in able be Exxon results still you with the or with and/or know have demoing you're go the steps tax and credit. talked Alabama sequestration next operational Update

Chip Bottone

in operational. for we such 'XX, going early coal then very year gas, both definition but going which be and this say we It on 'XX in and project the built and out is So, plant, testing then to operational run the will pilot in well. pilot tests are different that's that there's and Alabama our

I close other to very are of and -- of the because doing. would people some say that are success in we We Exxon the things

whatever keen We on. things are working to very we're other accelerate

and of well as in I my projects but and they to So that very ITC, public people's alluded I interest well Carbon comments is relationship addition in which country. of tax and noted investments that for because XX% accelerate project this yes, in carbon to it, just the given data carbon carbon in we're doing as beneficial do very give give all we Alabama, ton used, well, take talking point, about revenue. looking would we've projects for to capture $X unit a period all that is for a the year that a level and is pilot capture and enhanced credit and deployment per made But that, the accelerating a we're recovery would to. reference Act The of at in our you per our $XX answer the in or will that's all credit a to XX Sequestration eligible that million capture going industrial year like

value that ITC in tax credit of the this of So combination capture. carbon carbon the dramatically improves proposition

faster. of here the So to this momentum as forward this interest we of have economics interest, that that going are push kind of

as are that pretty we're well. at So, happy

Carter Driscoll

that technology rest answering fact rather take a net advantage off Yes, the has I'll a consumer. than think recognize questions. producer of of modular don't and all the line. my that guys. your people the electricity appreciate I it's Thanks I

Chip Bottone

you. Thank

Michael Bishop

you. Thank

Operator

of next Rusch question Your from comes Oppenheimer. with Colin the line

is open. Your line

Colin Rusch

on inventory next the or quarter to able as the a how the trajectory or here And that work Can sense down two? through we or next much quarter go you give be of us two? you'll

Michael Bishop

This is Mike. I will one. take that

really So from project we so inventory reduction the the brought down when, that in obviously, primarily first Korea, was in deployed of the happy quarter QX. with to that nicely

deployed example that have of and that's about funds an the so inventory I the inventory do would above levels in bit range, both million during year. inventory have that we As we some XX we the of last just to little talked I call, have that the project a the about like press think talked projects we on released that we to

you'll continue project inventory see assets out on that. think execute I as rotate we to to So

demonstrated when we this just was of mentioned, want to a opportunities so with KOSPO Chip about do maintain he we on quickly. and some that balance as types project, we As pretty talking execute Korea, can those

deploying dramatic of we'll the some project the it during but So take year, I of having to again new sit between opportunities. this today reductions from prudently to able be advantage where wouldn’t stock course safety and we expect assets manage

Colin Rusch

then, you through set? more talk more sales a side, little about and composition cycle? And little generation sales if bit on pipeline? can and late seeing in bit in the opportunities changes pacing And Is you the are of stage that equipment about a a pace late of the can into it the talk kind come you any stage change sales

Chip Bottone

take is This that Chip. one. I'll

So of yes couple a questions there.

a in electric it's thermal I turned changing, see for the that And as Toyota's, with mean the service into electricity. energy and and be in it's primarily don't i.e. I ITC some of hydrogen accelerate projects. allows so there's apply large case purely which for to its whether already U.S., would So, that of strong model rather doesn't points that obviously, more in a in competitive and Internationally, demand the there, deployment Korea us a primarily PPAs that. price apply pipeline the

So fast that's -- prudently. are about just as to going we them can execute as those we execute

two, As then [X:XX:XX.X] you something in cycle and Mike move or a an on. there then said, They tend award get -- out [indiscernible] -- projects. is month those you be to are -- come you and short

U.S. a domestically. pipeline the the than the far So overall more it's and the both cycle, are overall development the as in short But in shorter growing of as U.S. those because pipeline, ones pretty internationally is model

and were Some has customers team people of what in some more utilities. but and different we that was just naturally gotten our and accounts that interest as ITC, is national expanded traction because doing, in of of of

with all are So, that. we pleased

projects. to a to meet and So closing of question these full now schedules we deadlines out that it's are can into there new what

Colin Rusch

it How adjust then a bit that is think the that should to just there to question. a grant we housekeeping go year? going balance through number forward? are count guys Is going And would see we you or we -- us share one of as the about little final

Michael Bishop

This is Mike. one. take I'll that

XX.X XX-Q So count, reported stays the when share with about that shares we shares we about think million outstanding filing outstanding. our

range next be in preferred, Series XXXX on million price. are on shares those I of and price today XX over making the matures of common of the could the we stock As mentioned payments but in on March dependent shares, C that depending stock year instrument really that in stock, again installment

in assuming that So as to instrument. a But in that that of of see of matures again fully increase March count shares share you we continue common will stock our XXXX. result pay

Operator

Jeff & with line question Co. Osborne next comes from the Your Cowen of

open. Your line is

Jeff Osborne

up following and we should you Does Colin's interest that then about question, beyond pay how March? down as with the expense off to zero on think that maybe you associated Just the the go preferred? trickle

Michael Bishop

Mike. is This

shares. it. the an so on series it no there C preferred instrument, It's down interest Series expense really is So, of amortizing on preferred, just paying in

quarter a calculation depending this was there's fixed dividend price deemed the the P&L, so it $X.XX. actually this be on at being line. the X.X instrument are a and price again of conversion in that in quarter million a stock that creates Anytime dividends there's essentially shares will On there below about the variability

Jeff Osborne

the then projects. And maybe just about it's Chip's my comments of interpretation LIPA

prior as calls want So I you've some planned. to stuffs to XXX on combination something you kind some changed I thought revenue used that talked retain on of it think Has about balance portfolios. you the XX of all the and we sheet? now retaining of megawatts selling retaining had the million generation referred either of word and

Michael Bishop

way that, this No doing we're not we has awards one. in and or characterizing changed more likely that. we've some The had projects retained We and projects in pick Jeff. around financing all these to think it's nothing than project that

of in I to our coming half So is this and year. are expected, here said into with these backlog going would But LIPA PPAs projects and the tax these once projects. go the syndicate in first as generation particularly Company play, back prudently the equity that's executing earlier the

being sheet project. right. on balance least wind then we're project could it We also selling And is but for about thinking and keeping and financing them way for and amount awards amount bids up on at will hybrids, today in currently it get accounting generation the

Jeff Osborne

would and to And few constructing but just cash once went projects, maybe are you vein that, just the once then about thought as commissioning two balance even if all same the then finding follow-ups the the buyers a overtime And on interconnection through would and you you get, pre-construction? this premium to to upon on sheet or the of carry in sell then are talk sell quick that PPAs a pre-commissioning process if the signed? or were they the versus premium there up be, were projects it can relates with what that them? maybe and needs are play. operational so Is parts as along years solar these What you ago,

Michael Bishop

again. Mike is This

they and analysis, providing with part That these that premium construction that folks there risk, that in can assets purchasing eliminated flows. in these more So, interest cycle, in offer derive strong the cash right. the you when of for the financing generally, development of construction, generating the operating projects of projects. are completely one you've further that's assets, types first there the the is out because And I down agree second and said,

there as As no today. far to cash related as near needs LIPA, to cash is LIPA term needs specific

some as about, into and As going XXXX in XXXX XXXX, going begin cycle. the construction part development Right XXXX or we're we a is cash, modest range. in through now, we then talked there will that, operational of late

obviously really next and there in is these cash past need, year it's to projects. finance to small of We've capital large is more interest different again bring to about the it's project here demonstrated So where even a already strong projects talking projects fiscal in financing ways but greater.

Jeff Osborne

construction, XX as And megawatt for with needed? NRG also you can use the if revolver well

Michael Bishop

million That revolver. $XX

Jeff Osborne

right. that's million, XX

Michael Bishop

that necessary. to will we as put correct, That's use

Jeff Osborne

generation generation the one I the done, for construction? Last Triangle how already the the also quarters can that's both probably you three think line revenue kind walk had over should at that's of not under think I Street kind portfolio through roll So and the just XX.X we forget next you one or I just the but is, megawatts, that the general? think operational, of item near-term then four in about XX.X cadence off can I of you've go

Michael Bishop

megawatts, there correct, operating four we Pfizer portfolio X.X is locations. generation Sure in today at start, and project it's the at megawatt do under megawatts project beginning then to X.X of and XX.X construction. universities we biggest in other that's the the -- have projects comprised In municipal just is is of and have kind and your the math at XX.X and megawatts,

X.X is and phase power of probably other that, operation Right You testing generating alongside are and go a series right that first first come online right the our of now but in and will to that little the and first a we that Florida little ahead Wastewater that are Groton a projects these megawatt down to project just X.X I'll That's close is SureSource this year. There's we SureSource that through, want that Triangle bit all the go ago. of Trinity begin that's the commissioning project, half next of that our year, later is then CMEEC this will XXXX. coming and built which the additional be College over given projects other year. Street, Treatment announced XXXX in list, certifications announced we've sub-base and there's the year a public, megawatt, online, operational

We have in X.X Long megawatt project Island. a

Toyota. that we've with X.X megawatt second We megawatt project announced have X.X project obviously Tulare a and a with

different with that. that there this these probably some given year next that will out into and first application, come Jeff, So, Toyota one half online year and there's design obviously additional the of furthest being goes work that's between of end

Operator

of from with comes the line question next Your Eric Craig-Hallum. Stein

open. Your is line

Aaron Spychalla

Spychalla Stein. Eric Aaron It's for

sounds but about anything one? that you just maybe potential little and project the it's talk more a you on a has whether characterized together are or number project, or just maybe how Chip, the the First of somewhat partners since the opportunity pipeline like and you sites Toyota can level it shaped putting announced interest plan, of detailed OEM up bit

Chip Bottone

This is Chip.

okay. of of vehicles clear, to clear and much, vehicles be with thing even very future, to vehicles that performance our vehicles I reductions that say may are be part because are that and about. about -- if it very economics massive emissions trucks So, not good but as like passenger we're it's fuel cost batteries you it's better. and as not cell going care talking pretty don't it are the fuel of The obviously superior There's cell

vehicles. plant vehicles that of to The support. are have fuel going So into all so has feeding a building it hydrogen of hydrogen and infrastructure and always are pilot the to rate point is The this vehicles. to for producing infrastructure for those deployment been the way of we reasons affordable you electric question one cell example

perspective. strategy doesn’t which that you sources do is have need this to stations. dispensing massive stations want to require you this too view, dispensing the countries our in of you that to sense you given our B C every require hydrogen; from partner happen. you to it have I different other is have much which investments really happen of get have So the can is; XX three confidence that hydrogen than or from from that away people, states things I've itself, have way the a you to have And available to that need make to the don’t and; it vehicles And A, and doesn’t to have

for And Korea, etcetera, country-to-country story would there find but the that's with taxed this, places like either example etcetera. we utilize is existing programs things. can tariff Japan, credit you then are others in if China similar You using for you California the in BioMAT been similar Europe

give talking do country are for of within volume that sense, number than the on plans So by others. vast countries we tri-generation this focused on to obviously or meet to because car projected way eye or But systems needed have a are companies XXXX. their the were of about XX% some hydrogen other this a a vehicle to we more within of a there you even global on working the continent, markets, some every one global the and is

would well of subsidiaries an to how both perhaps Toyota, term the we a is; people their get and a in is demand do also largest as and So and trucks B, this financed. out things working that very-very with insight car what thing which as is world very thing like large and near to; the figure this like the work of them get deployed A, helpful and alongside actually company

big done have that it opportunity a don’t do be want but a I plan XXXX. that opportunity hopefully big anymore would by and So to and say than it's we

Aaron Spychalla

have. said that you just you that carbon a in only bit, touch company Can the you the it Can on talked is FuelCell environment from impact the competitive the do there? hear about competitive I credit this. already the on that about standpoint? second to talk Exxon a of can Maybe can good capture, has past that know just

Chip Bottone

carbon when capture, so there to you ways look do capture. at Yes, primarily carbon are two

display called going to to do carbon can it. You And FuelCell, we there mean do basically are Southern down a something which with process with it is system, then in obviously company. a a Alabama chemical in it's

really the down so to ways there work. do comes has but it when math multiple is to physically is And it, to

significant most that I what uniqueness improvement of COX on can not doing it amount that therefore for falls we the but is that to it we has what of the do FuelCell the do the are fact way think just power the looking you we is mean can capture it mentioned and is So it we carter a that and back affordable while energy are to which us. produce economics. I

in else relative leader the do FuelCell. does what Energy FuelCell we to nobody the and clubhouse So is

carbon we issue be tax was that markets. can will about tax talking of lowered and and to of year United well, because be industrial threshold things these oil expands so large apply we do per below the in States helpful along, the kind can it past generation. But to we tonnage some carbon power as story In the the to industrial, thing can now not move enhanced Second capture applications that actually do is carbon scale did the as we are they've do industrial threshold. recovery

for and out and generation EOR really going to it's for it to people accelerate not help going it's at power actually in for market this accelerating, expand industrial but just looking customers. the So

Aaron Spychalla

replacement there anything for about that just Was structurally expectations maybe can good on service module forward? that margin drove last And or talk quarter. gross your me, line, going just this you number any then or there there the

Michael Bishop

a like be Mike. one. to scheduled replacement perspective, with target term, we from continue margin fleet service cost we the here gets pleased mean bigger module overall little quarter, of continue down a long as lot of to this is I we bit quarter work a that to relatively margin This north the the No, replacements, that take XX%. not service in I'll absolutely to drive

we there in of progress. little the and line do a at will bit that with pleased today, to quarter-to-quarter, given variability continued again that but you levels are see work So the

Operator

questions. further time, this there're At no

So for I over turning Chip back call to am the closing remarks.

Chip Bottone

lot very Thank of all different think hopefully of hydrogen. aspects pleased are you it, and you momentum, the a saw doing questions, from and in much everybody we here the for areas, power there's I what we generation, with are capture carbon

that to expectation good and So, Thank the great Everybody with we follow second day. continue look to ours is quality call. have our to you build backlog execute a you have, projects quarter uptick but forward the currently on we that more to much. so of very this good and talking on backlog

Operator

This concludes call. today's conference

may disconnect. You now

FuelCell Energy (FCEL) 8 Mar 182018 Q1 Earnings call transcript