FCEL - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to the FuelCell Energy Second Quarter of 2021 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-session. [Operator Instructions] please be advised that today's conference is being recorded. like Tom the of Gelston, Investor now your over Finance I'd Relations. today, speaker Senior Instructions] to conference hand to and [Operator Vice President ahead. go Please

Tom Gelston

us everyone. Thank you you, good call. morning Jason for and joining on today's Thank

with Relations in this slide release, on recorded. is to at press practice, the we As Energy approximately morning, hours will be on release our webcast the company's press our quarter is and our on released a two XXXX, fuelcellenergy.com. will after addition call year This Investor for for and FuelCell post presentation of results available being This fiscal is we replay website section financial call. and available reminder, website conclude call second a this recorded website. Consistent of being the our our the the earnings

the financial are on statements its of statements forward-looking Securities commercialization, to All forward-looking direct regarding by press today, prepared the statement in and statements from statements Litigation our facts, the its qualify Harbor begin without on we will XXXX. FuelCell are plans Reform results discussion limitation, to the call include of performance. anticipated and operational company's contain forward-looking two made with regarding for today financial comments, financing development, Private the our and of slide regarding statements disclosure and continuing statements, statements company's statements Before business other attention presentation including, release statements. forward-looking of established anticipated the historical liability the intended and please to expectations to The respect Act the technology plans. These included this and the related and than disclaimers Safe your

based available on Forward-looking statements are the represent such statements expectations made current at are information time this call and management's made. on

information assumed, risks, differ and or factors from any uncertainties, involve these and particular, cautionary results predicted, to uncertainties, that annual results encourage statements the We you on disclosed the forward-looking materially factors in file our statements. cause unknown the review concerning actual reports numerous strongly Form other that in implied the quarterly known the by Forward-looking in and may forward-looking section regarding described SEC we our the with statements Form XX-Q. are risks risk XX-K of statement our report in and on those reports to

the section forward-looking review also statements press Cautionary earnings should considering morning's You in Statements entitled release. this

Executive During these find when GAAP with condition. this and call, press non-GAAP the of financial this portion Financial talking accordance we'll release Bishop, posted company's morning's on to our a President, reconciliation Mike Relations Investor Chief measures I'm In our reconciliation the document measures can Jason Executive earnings financial by you regulations, and use performance Officer, Officer; in comparable non-GAAP and call of and Few, and Treasurer. FuelCell On about the SEC today, measures President Energy's the website. Chief joined Vice

Jason for your of to Jason? Following prepared joined now hand remarks, opening to available members be be remarks. team. by other like we the call to I'll questions take the our and leadership will over

Jason Few

energy distributed with joining our and transition Thank storage, global you, to remain on the capture. Thanks generation, an call Tom, expect distributed about carbon long everyone. play We hydrogen, the energy duration momentum and that and for important optimistic good behind primary continuing morning, us role technologies include today. our hydrogen

customer believe to continuing aim committed over on working growth firmly solutions that in time decarbonisation. energy delivering to hard we turnaround revenue solve and to achieve and needs proprietary technology focus We our are by

increase full Taking shown year XXst, $XX revenue look year. For over anyone we on at a on ended a slide be included who XXXX achieved double-digit million, have a we overview may fiscal story, October of the the new three. prior to company

are and categories revenue and largest advanced Our licenses, technologies, three generation. service

All grade investment customers. sources which diversified revenue of with recurring contracts of multiyear under represent

ahead, are and see to our even opportunities FuelCell to certain sales. customers the generate domestically opportunities a business with U.S., in made powerhouse from Europe, sales. target We meaningful markets, select product we who product revenues focusing Asia on and prefer across have it we platform. countries priority own to Looking including Under strategy, the

We with build which applications ultimately segments, client deliver hydrogen business separation as of strategic pillar strategy focus taking go-to-market global capture step markets support talent, steps reenter onboard opportunities relationships. business development and capabilities growth, carbon business in repeatable essential the long-term have on and market been recruit to powerhouse to strengthen and our growth rebuild and and target our and an in

many these platforms customers FuelCell efficiency of extremely on power and slide are Many who high have highlighted multi-featured integrate the energy platforms. levels. here creating our We heat capabilities, combined utilizing

installations enable central other a keeping grid grids, reliability. While and powered enhanced resiliency micro resources and

I quarter. resulting carbon are biofuels to our onsite results. purpose, utilize power. neutral to moving quarterly satisfied saving this me want that If the in our you've addressing ratio. a spend company Certainly, heard financial this your applications is to discuss not call, discuss the Some minute earnings corporate carbon with on to we produced not negative Prior results first

We not this continue pivoting organization. ratio the process, results our that growth a was the pleased and we're be the reporting saving year are quarter expected with to we saving across concentrate And and our morning. ratio to while strategy to this improving on our phase implementation

distress not hard our reflection powerhouse However, work snapshot and I we're results a strategy. executing in making business a of that want are the financial complete progress and the

will cover and some investments We these coming actions of the in slides.

four. slide to turning Now

portfolio. that in or on of decarbonized focus our not protecting a enabling This life reliability world assist to is the we new power developing to meet is differentiated by world product power philosophy around Energy do decarbonization will to on It energy. cannot our living societies broad challenges. necessary by that in on their challenge The adapting unique extreme that countries clean deindustrialization compliment -- as based weather to to do. positioned of participate other a own energy through created reliability deploy with to our we an look high to solutions in environment to renewables responsible which remains in we environmentally the intermittent sustained highlight always the while a always manner and drives work we the periodically the company, need their resource issue. our power, deliver economic that an industrial journey grid requires reliable, subscribe live Instead, critical events, as uniquely purpose industrialized is of in purpose reminded and strategic a and the to customers standards important As FuelCell and committed growth, manner, world and decarbonization a development. grid we are are and the economic goal

Next, turn I five. to slide to would attention some your key like on shown for messages quarter the

that continue $X.X of our progress steady execute is billion we backlog we make strategy. first our against to powerhouse business The as

add terms In these megawatts. doubling of rated capacity of more current XX.X of portfolio megawatts generation XX.X will completion our projects than

to are our previously of Derby, the is facility With The Connecticut. project at in and resolution now to late expected the interconnection for the Connecticut final XXth, is prepared As of form nearing passage One of Groton, project With of Connecticut, XXXX. achieved. a agreement of execute commercial megawatt House that final the interconnection Bill a one Related of to currently May X.X XXX signature we the the U.S. to of two project clean representatives a the am to backlog entering stages I House summer which Submarine margin opportunities current Naval agreement, operations FuelCell parties in on close approved X.X megawatt issues the Base XXXX is announced, interconnect by includes in newly pleased in Energy. assuming announce share power State Connecticut. on construction agreement project awarded energy purchase of completion.

XXXX Just of fuel approved last This acquire manufacturing a to transition includes Connecticut passage important its position. State and margin. maintaining the provisions and XX importance Bill distributed of key leadership amendments The forecasted Senate of Connecticut bill the positions cell hydrogen several energy XX by evening, the the technology in to Xst, bill achieving House the will mandate XXXX. submitted January be Projects this projects essential by that global approved global objectives. leader to July generation begin a sustainability utilities XXXX. or fuel electricity X, as Connecticut Connecticut proposals under new on and requires to after solicit clean The cell

Governor treatment projects fuel preferences Bill Ned are biogas in facility, to now on for bill completed. The our as demonstrates California for Connecticut XXXX goes megawatt its that wastewater cells commitment that project the for provides San X.X desk House law. Bernardino signing the is At Lamont cited at manufactured and Importantly, brownfields energy equity Connecticut. construction are into to

entered have local the process the this and We interconnection utility the of we platform, on have from for the commissioning received this project. necessary stage authorizations

COD our flare, water the another ability consuming further resource of to hydrogen and in making of Energy's another eliminate expected water are in the third University customers early X.X kind I the Toyota Toyota's of produce its water TriGen more is production Nebraska-Lincoln, the natural extreme, platform assist the Beach to classified will rendering is on a achieve COD stage project. fiscal our Based decarbonisation move severe wastewater and methane goals California achieving XXX% today the yet expect FuelCell help construction drought provide its broad Energy to fabrication, quarter, We its State TriGen conditions we This a drought range Beach Equipment a turnoff of our area treatment flaring. will even helping moderate of forward and to plant generated once manufacturing, platform customer Energy to right FuelCell is in megawatt at at on and demonstrate center at value port. underway at deliver avoid green on neutral project of is Long and goals. of slide the as that of California FuelCell carbon valuable national of water in between helping sustainable TriGen surrounding platforms a port. unpack picture hydrogen and use first water, least the of of Long mitigation the The Toyota. at the the port want the the will electricity, side hydrogen, example the

with are reaching everyday and than hydrogen Connecticut. our as megawatts it is necessary fiscal continued total as the Operational This key April ISO safety, our research and and of formally incorporate with investment has to to time pack of rate XX our company megawatts fiscal end implementation production this the practices. FuelCell facilitated we Connecticut of production, enhancements, and solid principles. XX for development list our XXXX our am proud of as from York, highlight have rate megawatts power by efforts into certifications. After to validation for commercialization Energy of manufacturing XX.X our XXXXX on lean utility occupational of projects in rate My recognition in Torrington This and Together, been three safety our to XXXX year. work always increasing XXth, recently our by commercial in Long the second increased in has I facility important we extremely advancing production reducing capabilities. important of Island, storage well at and the these toward megawatts. more production growing that efforts. annualized electrolysis international addition, in represents part increased standard resuming world's our safety as manufacturing Derby, platform, excellence end is the been oxide COVID-related production our objective an added annualized of to hiring, XX our generation health at we deployments year message In scale New last Yaphank,

increase to of programs balance our design the the efficiencies of systems. electrical DOE with external advance XXX%, an solid that continue with The Our currently and our stacks, supportive efficiency about modules, capability we is the waste. to exhibiting oxide are prototype XX% stack of electrolysis plant operating source system target to electrical

climate and to third generation sustainability. We society are will and The for our the solutions to on key for remains call change infrastructure by And results deteriorates climate portfolio attacks. cyber our product continues high meet as power momentum for today transition also decarbonization our challenges to developing Mike energy systems. global strengthening energy to discuss them the Energy solid solid decarbonized posed admits systems address this the focus gain clean message executing on reversible storage largest develop efficiency growing oxide programs leadership solutions our in over while energy of FuelCell grid is to looks in and investment financial And more I To very reliability oxide need, opportunities. and now deploying detail. some focused Mike? under distributed to challenges turn

Michael Bishop

Jason. Thank you,

on quarter by in of Let's revenues begin seven. XXXX. the fiscal delivered fiscal reviewing for $XX the to of XXXX, shown compared year In we the quarter $XX.X highlights year million million of second slide second quarter financial

service XXXX. exchanges is million The Looking in primarily at license $X during to no -- exchanges revenue there drivers the prior in the agreements $XXX,XXX revenues reported quarter by of generated the category, new from million decreased module decline module year the to and in due approximately comparable while new $X.X in fact revenue revenue quarter, quarter. reporting of were

approximately quarter in for or by agreement, also an resulted second changes the continued during of primarily exchanges, the in were an revenues to to which in Research of revenues $XXX,XXX. JDA of cost million recognition of in with $X.X year the on with to for the to in quarter. Company, fiscal the loss loss fiscal cell second XXXX year totaled included in by from timing The million increased output quarter quarter approximately to revenues of revenues to prior quarter also under were solutions profit second of credits, expected second $XXX,XXX service margin development and joint of revenues gross sales million Gross $X.X $XXX,XXX adjustments the year energy to XXXX, operations of million or fiscal $XXX,XXX. revenues contracts recognized were of technology renewable fiscal to in during the and to to new EMRE ExxonMobil $X.X offset of quarter gross due revenue JDA resulted JDA, capture which loss generation The timing XXXX the of increase higher module gross the advanced exchanges quarter the during the operating due the The $XX.X quarter. a were future the EMRE, $XXX,XXX government the higher less gross from fact prior exchanges. $XXX,XXX in year to the under contract Engineering reflecting expenses. increase compared revenue of account technology compared carbon contract operating totaled period, decreased approximately generation under XXXX changes million, second loss and of $X.X performance accrual of module the reserves fuel in compared Advanced higher under $X.X recognized the result which prior future quarter fleet, module comparable no quarter the $X.X higher loss year adjustments during a Impacting XXXX there generation Generation related fiscal for quarter. as increase estimate million the million from in due expected lower approximately comparable reduced compared

XXXX impacts and for annualized in performance variances to due rate. proxy higher second $XX.X the administrative XXXX. mailing of in second $X a quarter a the Net the in XXXX. second XXXX associated in to loss to compensation lower Please contributed generation manufacturing development fiscal the $X.XX quarter the in factory XXXX is increased quarter million partially maintenance, $X.X the increased selling company's August saw improve share higher expenses meeting per fiscal million of compared under the The and fiscal fiscal margin, net selling in annual see in during XXXX. increase also discussion spending higher $XX.X activities the The commercialization production share to fiscal Adjusted $XXX,XXX in of quarter second initiatives. in XXXX incentive and company's stockholders primarily advanced fiscal compensation stockholders million of to was expenses a also common efforts plans. XXXX quarter and due the net adjusted These plant costs expense second earnings compared offset expenses million negative of fiscal company's to of appendix EBITDA of related of XXXX. November to non-GAAP quarter. grants fiscal quarter margin fleet to long-term common the the quarter to as we of Operating and We the fiscal shares the million loss with share weighted as issuances of continue second gross stockholder higher to for the common XXXX of EBITDA of to given quarter Research share-based lower was increase attributable to non-cash QX including and the made result second on mix were gross in included $X.XX financial invest expenses Administrative of technology hydrogen in the release. fiscal from million lower reflect quarter $X.X net second April And the negative compared additional to despite outstanding for by of expenses lower of $XX.X of XXXX XXth, loss per attributable adjusted XXXX. loss due in the measures, in totaled the second average million XXXX. in the since loss net quarter of of EBITDA the $XX.X second our

for detail our to the for turn financial numbers years the performance and side the show XXXX. slide we of and backlog. that The on please slide the additional of graphically Next, fiscal hand left eight charts second XXXX just on quarters reviewed

was agreement $X.X program. of side clean the during million megawatt offset decrease competitively as awarded for of Derby, $XX.X at shared we decrease backlog inclusion power state-sponsored in energy Looking with project the purchase X.X power backlog This of the partially bid for a purchase added the XX-year of facility quarter approximately agreement finished The Connecticut. the part generation right the X.X%. billion, quarter hand slide, the was of of backlog the by

slide nine. turning Now to

cash, XXXX, $XXX.X $XX.X million equivalents which cash, XXth, the cash restricted bar. cash represented was equivalents cash restricted April of million totaled by and As of green

projects, the a we approximately include assets as we to included in. projects Investments year up invest At to quarter chart illustrating gross which our million. towards and total capital second the our well as XXXX, continue generation company-owned assets, of hand fiscal right of On make completed totaled the spent which have portfolio, in project date our development end side slide, construction. $XXX.X of the project

of XX.X XX totaled and generation and itemized As this slide XXst, of of assets XXXX. operating of megawatts presentation, XX includes October in XX.X megawatts megawatts appendix This on the as portfolio XX.X -- of our process. assets projects

and expected are online, projects EBITDA. As adjusted process they come and contribute to revenue higher

noted as of As quarter Bernardino we subbase project growth project expect to over back for today, financing release in are online, Also in our I operations San Groton fiscal to commercial redeploy targeted targeting seek operations other cash projects and platform or now to of development XXXX. summer recycle of to XXXX company and call long-term Jason. commercial now the turn is the come third will of late the Navy back the activities. into projects we our

Jason Few

Mike. Thanks

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at port stated, the are distributed as Long And Our carbonate will be commercially of implemented solutions California. our available. Beach, separation carbon hydrogen distributed and previously solution hydrogen

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on position our Next XX, chain. illustrates the slide across value hydrogen

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Just solid last electricity and Murphy oxide by being visited hydrogen unit. witness Chris firsthand to in Congresswoman us Jahana converted here Hayes to Danbury prototype our week, Senator

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powerhouse of turnaround, Energy strategy as core three grow. serve January FuelCell repositioned Next on slide transform, introduced energy and transition. is of to we as the to XXXX We in guidepost strengthen our business pillars on a the XX on for is business based our which capitalize powerhouse strategy,

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the us To on capital capital. a business of taken products enhance to and and of our make is business the our powerhouse top the segments our advance strategy be technology where solution. new investment breakthrough finance our of performance third long-term focused push strengthening excellence drive growth strengthen balance and commercialization deliver to forward important and fully to stage preferred for to cost allowing decisions operational quality penetrate have with Currently, team. projects, we're while to number on platforms strategy, further steps sheet, that product We pillar lower throughout talent our the markets adding can our commercialization customer of

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Turning to XX. slide

We and achieving fiscal of goals long-term looking each executing those will that with to powerhouse business our our launch established we operation year of to our the XX.X megawatt will these targets against Reaching toward ahead projects. and require XXXX. backlog for continue work commercial strategy successfully three-year project targets

--- FuelCell we Energy will slide sources explained external of presentation, of key on I and focusing highlights capture As review company. investment today's carbonate solid on platforms from carbon and I remarks, growth advanced oxide our capturing are XX. offers around for for which in have each potential opportunities commercials carbon our for my pursuing advancing the To development -- technology hydrogen, commercializing our conclude our around E&P the

borrowing. three-year liquidity growth reducing execute company our strengthen several repaying the positioned on have We debt, strategy. We steps and have of our to sheet strategic actions to our executed by enhancing balance these believe cost

We company. and talent team to add exceptional continue leadership across the have an

milestones We financial taking excellence, while customers, focused on are our and hitting building our continually our care operational our adhering core of upon to purpose.

of potential the of industrial developing to differentiated key the technologies and economy the capture infrastructure and with energy play goals solutions. grid, existing portfolio decarbonizing innovative carbon investments hydrogen role has global in Our a supporting

our maximize us long-term and growth. operational to to strategy We are position efficiencies strengthen powerhouse implement for working our business,

Stevenson our a life I intend to over of to we delivering platforms. be will on technology stewardship to and in the now Jason Finally, full by sustainability environmental leader circular sustainability and begin it Q&A. turn through our

Operator

first Colin from Rusch Your comes Oppenheimer. of Instructions] line question from [Operator the

Your open. line is

Colin Rusch

made they're can see that the of But geographies. looking competing you versus and so of to an Thanks outside some how some get progressing progress. much. the pipeline love projects other update we of on you're you're Guys, we'd at, Connecticut how in

Jason Few

How morning? this Yeah. you are

Colin Rusch

Good voice. Thanks. your to good. I'm hear

Jason Few

joining for the Thanks Thanks. call.

sense a you of give that. to Just

transformation to around the build build has really work parts to pipeline work big of doing Connecticut, and big, not another we the been of that of the around, outside of part only trying but or that the part our do As really were world. our state the other but pillar we opportunities, of

the and So, see sense they as that of across Latin early kind as opportunities is now, that markets, if the see I about today approximately of opportunities and you reflect market the we we're about opportunities Asia, XX%. other pipeline, now we're represent America of least going today the give at. that U.S., reentered XX% about And know, XX% right Europe that of then about the you across and looking the we've we roughly admitted XX%

we're momentum the on -- to offering about be Toyota really and That's really type the focusing platform, -- the power just should traditional heat that starting we're where with in really more benefit way talked the a our than I So, think leveraging as see about product a or power combined markets that good we're solution. solution. of and scenario

our a more the products. the sure is to focus -- approach of really capabilities of to attract customer demand leverage as so, And customers for that around we multi-site big world, platform ours that make we that's can our

Colin Rusch

quick helpful. super I've ones. That's two got more

More raw and guys on you up, may any inflation perspective. this terms at of scale on around want materials place materials. manufacturing, a a sort the purchasing basic of get positioned in materials sense are obviously had become have pageants raw on for how of But consideration First, you a seen of point? a bigger in from that inside some to that just you exposure to to obviously ton

Jason Few

perspective. out going chain address from Hey, I'm Chief Colin, is do Officer, going I'm what to a Mike supply Operating -- here, to that let

Michael Lisowski

good and morning, your question. thank much for Colin, Great you question. thank very you very

a to relationships market These solid agreements chain. established with and So, is we as global continuity -- that have we supply of very founded the as from for have time. dynamics. ensure fixed in partners periods our protecting unfavorable -- supply, well well And of supply priced cases many forward stand pricing pursued against

articulated. line good the look supply our that feel projects we ahead we for to positions So, confident executing the about have and as on and

Colin Rusch

rates interest one, one here. are tremendously low Perfect. Okay. last obviously then difficulty], And [technical

You you and about refi are savings way. a opportunities. might supplemented bit potential guys a that you sorts existing sense talk have really balance [technical sort difficulty] we the see comprehensive Can of that what of the -- and really portfolio, those little general of sheet on then timing of

Michael Bishop

Yeah. Good you morning, Good for is Thank call. This joining Colin. Bishop. Mike the morning.

as remarks, leverage. to bring the for expect in So, in and tax I equity company, terms permanent projects mentioned in those my commercial projects, we both financing we back as to operations, of bring

coming over that currently megawatts our portfolio, As operating we've for projects done the projects we in are of online. have XX

an capital to So opportunity come those online. projects recycle the back as into company that's

summer our in Groton late this go As we expected Bernardino fiscal operations remarks, San year. mentioned and subbase project QX, project of the then to commercial expected in

Colin Rusch

Perfect. Thanks guys.

Michael Bishop

Yeah.

Operator

Your next the Wells from question Fargo. comes from Satish of Praneeth line

open. is line Your

Praneeth Satish

Thanks. Good morning.

on generally comment could administration you you're from the if wondering Just seeing adoption. support for hydrogen the Biden

kilogram to to in think earlier to I there week a try hydrogen was DOE a proposal a per of to to the the dollar cost by down this decade. green -- try get

thoughts this? like of on government. So, for your subsidies from federal at point likelihood some the And the -- just greater maybe the in curious

Michael Lisowski

We energy opportunity micro three just And well for the have energy And opportunities to reliability to is strengthening our across itself. as do certainly, that we you and even question. participate transition you. around with that thank the they're will think an focus the with about grid, optimistic to Thank Praneeth. Biden for pretty discussed -- overall around were platforms of administration hydrogen. the the we as respect the what as grid morning, Good trying technologies

to If and you National project hydrogen we playing platform. really Labs, the U.S., like capabilities markets out of that that with of Europe a have thinking we really economy look have plans with figure do DOE the those -- we're forward DOE for supported we at we've And we to on And we'll that that. a tremendous do is, which the going support to as working our we of Asia trying across with and announced of been with Biden forward the bit be move see DOE the gets countries terms that different from catch how is indicated, everything up lot regions. about to think U.S. to Idaho work leverage the look got we we're hydrogen. But that that across conversations again, multi how there's hearing the the we and in administration that certainly

platform heat capabilities example dailies have just manner, running extend efficient, talked by platform a and the work produce the we we're conversion make able nuclear here. very -- be our the we in electricity our leverage it's one as that XX% highly utilizing in the to that Biden even to we our oxide even about, the as and ability multiple that But waste how, of demonstrating with of integrate So, prototype solid manager to we're of ministration hydrogen efficient platform. to more value talked that leveraging supporting then another about is, of the and

Praneeth Satish

Great. just there if far, Thanks. progress the commercializing one you an maybe give capture to your and update question. us just it? And wondering roadmap carbon I'm could on so more

Jason Few

our Sure. give ask I'll we're A maybe the what Tony a Technology is question. doing the and we're sense Chief Leo, you that that progress work And to great do of making. there I'll Officer,

Anthony Leo

Sure.

progress So, with agreement we're joint a a objective the our on lot little that. of of and development background making with bit Exxon

designed optimized is has generation. power developing to platform carbon Our been Exxon program for The optimize years capture. for the carbon modifications it over

we all the so make them So, can work been we've with power what increased we've do to amount really has the of able far while carbon. capture we the done capabilities,

a Rotterdam. continue doing And work. one do the has to to at demonstration be where publicly in continue the Exxon we will Netherlands talked project that demonstrated. about think their of We in facilities about

as is plans with as technology the continuing that Exxon timing. for are that develop finalizing for the well demonstration, us. still we project, the evolve project as as well to beyond So,

about can't happy the be progress here. from timing, but very So, we we're with specific the

Jason Few

or even company of continue in sure to which supply. standpoint that making ice different sources leverage platform. an utilized carbon a food think onto that's But apply that. going And on traditional but that is our same a reliable capture or really we we're and/or platform those standpoint. give can for electricity. we going an to gas traditional the platform increasingly to type the appreciate, carbonated we leveraging to company delivering But security utilization that other large applications. to from example, utilization, carbon generation and/or or bigger around onsite We power add scale from technology ways, and as those all or around, carbon, of that pricing How processing, become on and another innovation of to our ability their facilities, of about -- generation in you both. related energy our just an that to time sequestration toward pH Praneeth, for about capture, can And products, actually prices or all reduction capture COX own our uses at grade, concrete carbon, as deliver is beverages, it whether purify the to being about think be use platform carbon food an our I and you area deliver in put do a as supply ingredient again, carbon you just in as mean, from carbon or example, beverage carbon to certainly to thermal also as carbon carbon like we had think is industrial locations value, how that's deliver applications -- the and dry whether balancing that around respect water most beverage plastics as while and to a we platform, production addition in COX see with I'm we issue with

Praneeth Satish

Thanks. Got it.

Operator

question Canaccord the of next line from Jed Your comes from Dorsheimer Genuity.

Jed from of your question Canaccord comes Once is Your Genuity. next line again, open. from Dorsheimer the line

Your open. line is

Jed Dorsheimer

I for mute. question there? in generation it how those I -- quarter it sorry. the base, but what had we dynamics on the guys. the guess, should Is short-term to side, quarter? through Thanks Hey, on just up, changed ticked same taking on pricing think

Jason Few

output If Hey, little question. you you difficulty]. Lisowski we've it of with should just bit. you let [technical about talk been our or you tell this portfolio. Great then Jed, something right, increased the Mike, are doing Mike that But, that morning? speak enhancing this And things current how about bit. in way general, the that to I think I'll have operations I'll you're on actually But a terms in a mute the of didn't generation

Michael Lisowski

life is based Jason, And the the This overall thanks output the the Yeah. the right mark. it built generation centered No. is for Jed, hit there improvements improvement. Generally, and on the across modules you respect made question. on other drivers improvement fleet. we've of around fleet. improvements to of made replacement at we've that that that the outperformance end And with of that and for the are those

Jed Dorsheimer

just small capture Thanks. I percentage Got in -- I But the TriGen portion. what the base versus it. blue, And of the gray curious, then, guess, relatively percentage? sort the know is just that is that a of I'm

Jason Few

base? percentage the the Would you say of

Jed Dorsheimer

any carbon fleet the of considered sort that able the -- your in that blue. versus that's isn't that can doesn't is non-R&D do to generation have do hydrogen actually of base So, of gray what of that's capturing the the terms percentage the capture technology

Jason Few

Yeah.

of portfolio electrolysis meter or or doing currently Jed, or those the our operating of are existing grid So, if about are behind deployed the think platforms production. today, customer you none hydrogen that connected

with ways on would or that the our hydrogen, of across have our carbonate is to go-forward the deliver two we So, delivering we platform, if on about think hydrogen, if basis, a where carbonate it The carbonate deployed. depending think platform, you you And to blue green carbonate for platform can platform. are try gray our hydrogen configuration hydrogen, platform. I get think way we you right, about platforms -- is

TriGen that do platform. the is way our either we that So, with

project, off power that water where if you hydrogen, direct using just carbon to neutral So, as an biogas, and the example, is platform. take that Toyota we're deliver green TriGen going

as electricity, again, where Toyota. carbonate delivered that get hydrogen. to same were could and green input energy and capture were electrolysis doing that that hydrogen. could working configuration, you the this And sources, so fuel and right, would thirdly, our And natural case and that electrolysis. natural hydrogen. that also the take coal, solar, the blending grid renewable of be That say was three be just platform, reverse gas produce an mode to great and the hydrogen then, configuration, But kind that we example. if then on so And platform, depending would biofuels, using and value hydrogen. run to take we're using the take let's we're for making And gas ability carbon configuration. Also were let's using that with electricity, or with as depending And electricity, converting with streams we commercialize platform again we that through on an electricity in were of if we wind, using if the we oxide and input we're renewable nuclear gas in be and it carbonate platform, green So using convert electrolysis would And be a be to doing hydrogen. configuration we in blue that if were hydrogen, gas to in great using hydrogen. to we case, natural solid

And but depending oxide we input you it really deliver on platform, So, we hydrogen, of sources, will. deliver and to ability on have the can various depends colors if across the both configuration, solid the the carbon the hydrogen.

Jed Dorsheimer

-- that helpful. thanks. Is That's

or terms Or of most the smaller there of, on Cutter it guess instead you these just LNG, other U.S., infrastructure is the small efforts has [ph], your fruitful based So, would entire demand begs economy in sort I why marketing its of -- some the on is I question, focus there. in which projects? is have in guess, where hydrogen for the it for reason focusing -- focus why on example, the shipping not not

Jason Few

Yeah.

pursue equates move with and growth powerhouse on we those of our the talked across can activity progress I as to themselves efforts. as opportunities in recruiting various hiring part business Jed. coverage we we're indicated, deploying to that broader as into market about of resources, U.S. our as we phase. So, markets strategy that just to in people, our terms globe. we And of which relationships is And are and focused so making well resources, -- shrinking help been has not our adding we're as there Part

salesperson need that a part So if world, you're -- the you great at, looking we can of so. in

Jed Dorsheimer

listen, Well, it. in appreciate I'll queue. Sure. jump I back

Jason Few

Thanks.

Operator

of Our next Parks Touhy Brothers. the line comes from from Noel question

Your line is open.

Noel Parks

Hey, good morning.

Jason Few

Good morning.

Noel Parks

new a the couple little talk out more is time bit you in things. curious the or just pricing deal to signing, of the Derby? a was Just more the what inception from lead Could about project about, typical. Just whether of less

Jason Few

Sure.

So, that you about we asking let you're question the X.X Are award me megawatt make sure or--? I'm answering asking. the discussed

Noel Parks

Exactly. Yes.

Jason Few

Okay. Yes.

So, upon PPA, award with say the project. now, then, And months the award bid that -- and was where it's that called process that energy of we assigned open a The program that open won competitive part we and project now solar. process and having of that of over wind process an generation process. project our backlog we and was was project part against awarded to construction project clean the bid facilities, award of And several move we'll like which intend forward - that of State Connecticut. as lasted and being process participated bid shared part development must in the resources competed other I

Noel Parks

for of Groton sort coming San and Navy the And in online, both Bernardino Great. are later summer.

replicating around you be time today, costs efficiencies where lessons were And get having would this projects, I versus, San new either Just you service for about, maybe life as could or think if project as usefulness labor guess, perspective, as, do of a to you I guess, new sort environment. some the fully materials talk far learned just of trying curious, like the demonstration, Bernardino in just contracts.

Jason Few

No. Yeah.

think, missed in. here question. speak that But part of your maybe to little in the first maybe I I'll I'll jump terms one Mike bit. And just then might've San I Bernardino, to ask of a

done project for a power. representative production So, like the we've more onsite that way biofuels neutral you of can think are it's leveraging is projects carbon of about other San the that that Bernardino

and utilize I and another gas. I a which being the produce there's treatment was was And just example, second. if just that as where another at do think We to of fuel is differentiated facility produce thing about we're project that year biofuels San wastewater at digesting If were that opportunities with wastewater same plants mean, the as my think XXXX, California it for onsite treatment stayed project biofuels, that a aerobic where that example Tulare and other State we of Tulare areas an did clean produced. a capability leveraging is have in leverage that you California our think doing for the right, areas example which to technology we to to flaring biofuels other company. actually able where -- or are power that to was across Bernardino, with we using of the

not waste, uses If grid that's as now to then you to there an it legislation enhances and leverage be another for look reliability that opportunities digesting, in company recycling, of going fuel example well. liabilities that resiliency that with go as that terms And a at for source to but look platform. creating grid food we'll as -- requires of the

And so, kinds opportunities. we about were those very of excited

grid, in the provide the as There, installations. to enhancing only will the area, to we but to base well. micro participating be if to the that Groton, enhancing reliability an you the of base is are is in a you about we're the example in government the U.S. project example Navy services Navy Naval platform, reliability Groton its we with not military excited where our power about where Connecticut, other able fact committed on enhancing the and The that's of addition project to the reliability the operations grid mentioned think grid the on

Noel Parks

sorry. going to in? yeah, -- And was of jump am sort as else I Great. was somebody didn't mean I at -- getting I

Jason Few

No. Go ahead.

Noel Parks

Well, just think about can be this and cost had would how you do ones, more you around scale? trying over your similar change similar, if think I projects to time the might as this there's a -- cost like time. the curve do you guess, I'm after replicate economics if Okay. you thinking however many next a treatment water just you prior project, time later -- around, the think years more

Jason Few

Yeah.

look understanding I that differently. perspective we project us learn build the contribute think correctly, lower lean of learning And as mind, EBC obviously in do, down in -- the a away how to scale and to of replicatable, onsite manufacturing maybe question capabilities, in project, is our right? there improvement actual platform, And we that through we able from technology. those to next are and time. every take our I'm it's and which that every right, So, It's each How point way proprietary the continuous the contractors continuously your will every approach to so, think to we and things find overall sourcing doing we opportunities construction if same gated. to to we next gas cleanups manufacturing being your we costs of the in project ways we're terms our about all think bring same deploying keep technology costs

same fuel carbonate our it's platform. So, cell

and to adds that time. the obviously And So, efficiency doing we're down not drive new to something opportunities costs. every

Noel Parks

Thanks Great. a lot.

Jason Few

Thank you.

Operator

[Operator next is Instructions] line Jeff and from from question Osborne Cowen Company. Your the of

open. line Your is

Jeffrey Osborne

Guys. Hey,

a program that? sorry XXXX -- Just for one or couple Falls the eligible Connecticut actually -- Beacon is

Jason Few

A that But How are first Well, Senator project Yes. -- you the by the the hello, like yes. assuming Jeff. fall say, all, that is of governor. should answer this by I into morning? would legislation,

Jeffrey Osborne

you. Perfect. Thank

Operator

Riley. Souther next from B Chris question comes Your line the from of

is open. line Your

Christopher Souther

guys. Hey,

throughout exchange expecting rest of timing of you're Are Just on or should one some any there that key how then of the a for timing the the the we think year. exchanges year, module module quick other about that?

Michael Lisowski

is question. Mike Chris, Great thank you This very Lisowski. much.

our a focused we between those module the around in remains So, in And future are well part in replacement. we're manufacturing exchanges. that is lending under module that know, the And them replacements, our of agreement. going do our that's replacement build making And alignment portfolio, really you specific supporting as them. really for with as module to to projects the need generation and mixture be of service projects forward We're plan as unchanged. business they're ordinary overall when going plan we our do in

we're to well-positioned support that. So

Christopher Souther

of where just it things. if another if could people kind at one I doing what sorry, the versus additional with and could potential to longer you and generation, then kind break to these going piggyback looking before? -- down they pipeline, a the guys But I And term on break if could Toyota between the streams Jed's distributed hear, seeing down you to kind then some with were -- value of of pipeline sense of wanted of you are delay be get Understood. question of to opportunities, some kind of

Jason Few

-- we see to just in opportunities terms that maybe We Yeah. right, pursue about you. give sense, a just about. you them, the like of opportunity broad lot to we think how and leveraging of Thank we a biogas, around the talked

We're the our we We you data sectors, think with fact needs it center centers. also both can also see And and lot us. for about needs an healthcare for across opportunity chilling, beverage. reliable it seeing an and absorption data food the When platform, power. as what a opportunity -- you needs, think that education It edge of edge integrate creates chilling. opportunities about

the customers, commercial to desire grid, virtual an online. the done and and grids, our around to utilities, to -- increasing And a opportunities we interested decarbonisation to but what's to as renewable for only so And contribute certainly type pharma risks, as eliminate lot the micro where it the growing I really across also then we generation. of with for installations And central we're for in well, micro then lot seeing as and try continues resources a industrial remain ensure to And administration. try around power processed kinds implement of government industrial to more As an sector that opportunities. opportunity frankly for demand micro not seeing certainly or leveraging a a significantly U.S. we're ways anticipate of across fortification energy. military the comes that manufacturing, seeing for terms across both typically in to for see PPAs reliable be we're biotech the reliability, to those described, around growing find as opportunity like grid opposed can they to but way there's above-ground reduce i.e. demand when authentic important priority of having

in require lot and manufacturing can you is reliable power process. of power. platform like money imagine, And aspects steam able so having As those R&D available of critical. spent to our is facilities and then their A being leverage

value opportunities our leveraging where segments platform. customer focusing the customer really we capabilities to can again, and on the by deliver really So, full enhanced of

gives So hopefully of sense that a we're opportunity segments. the customer you how across seeing

Christopher Souther

helpful. very That's No. Thanks Okay. guys.

Jason Few

you. Thank

Operator

Craig-Hallum. line final the comes Eric from Your of from question Stine

Your line open. is

Eric Stine

Good morning, everyone.

Jason Few

Good morning, Eric.

Michael Bishop

morning. Good

Eric Stine

side touch the the a clearly focus. Hey, business. just wanted to of I product on know that's

think so are steps and What of some what you're that you a talked there? You there, reengaging when about the have gating see maybe of start timeframe some to taking the some maybe been traction you factors? to

Jason Few

assuming you Eric, am product, in the … So, terms of are talking about sales the I pipeline?

Eric Stine

product the as mix generation, sales. selling strides objectives. know I your about making obviously, products mean, talking that you're along but great of of one I'm with part No. just growing -- product is I

So just there. thoughts

Jason Few

Yeah.

-- several range working we focus that business one our liquidity and to for obviously, projects anywhere the generally months. the balance as on we So, the some creating fixing been months, we've our between cycle are first strategy, through things -- for as sheet our company of utility sales XX XX scale

service sales. that of where start that convert each of the -- could with we'll obviously -- sales have opportunities so, we turn world our we actually anticipate and kind But fully to many think be bundle on those with of asset. about the around projects that if are the agreement to those pipeline we a are opportunities And in runs of we life one coterminous product timeline, that you to

year a service of as as well. generally kind that's agreement So XX

fully seen start well. those So, mix to in see product to addition traditionally see to opportunities. we to convert sales while of a for expect as PPA's some for of you've you'll us And sales a now, what

Eric Stine

you. Got it. Thank

Operator

remarks. now to turn I'd There for call closing Jason no questions. the back over further are

Jason Few

again today. Jason, us And all joining you. thank thank you for

to business working joining strategy, powerhouse returns. to the our is on enable profitable deliver about The and purpose, continue FuelCell optimize to deliver world call execute hope our our everyone energy. we life today. And are and to you. live clean by Thank growth work Energy long-term day. will on We a committed team great I delivering you powered a has Thank excited to for to shareholder value. And our

Operator

That conference joining. concludes you call. for today's Thank everybody

now may You disconnect.

FuelCell Energy (FCEL) 10 Jun 212021 Q2 Earnings call transcript